Taxes, Rvevenue and the Deficit

Some may think that “Tax the rich, feed the poor, Till there are no rich no more” are only lyrics from the Ten Years After song “I’d Love To Change The World”. Unfortunately, there may be some truth in those lyrics.
There is little debate that our country has a deficit that, if continues, could spell disaster to our economy. How to solve the problem continues to be debated. Cut spending? Tax the wealthy? Leave tax rates where they are in hopes to bring our country out of its economic malaise?

The growth of government and its runaway spending needs to be curtailed. All the taxes in the world won’t solve our problem if spending continues at its current pace. Unpopular decisions will need to be made and some pain will be felt throughout our country. That will be the price we pay to get us on the path of financial security.

Increased tax rates is not the solution. A thriving economy is. A robust nation will produce more employment, more successful companies, new companies, entrepreneurship and a better feeling of self worth. This will produce more consumer spending and a flow of capital. This type of economic recovery will greatly increase the revenue to the coiffeurs of the federal and state governments. It’s not the tax rate that is important, it is the tax revenue. All revenue will increase. Federal, state, local income tax, FICA tax, etc… They will all see an increase.

Increasing federal taxes on the top few percent in our country would be counterproductive. There would be less incentive to make purchases, expand business, invest in a business, hire more workers and even pay taxes. Yes, pay taxes. As the tax rate increases there is a greater incentive to find ways to avoid paying taxes. It is the same group, that some want to tax, that have the ability to find ways to avoid being taxed.

It’s time our leaders make smart tough fiscal decisions and stop going for the day’s sound bite.