Where do you stand on this issue?
“Progressives rally behind a “Warren Buffet Tax” that would raise taxes on the wealthiest to help pay for the deficit without cutting the social programs on which many Americans depend. They assert that the rich have only gotten richer in recent years and thus should be expected to carry a greater tax burden.”
If you support raising taxes on the rich, you’re probably a progressive/liberal/Democrat and may not even know it.
“Conservatives argue that the key to economic growth is job creation, and raising taxes on the so-called job creators would bring about more unemployment and thus even less tax revenue. They point to cutting government spending as the best solution to reducing the deficit.”
If you support reducing taxes on the rich, you’re probably a conservative/Republican, and may not even know it.
The key to improving our economy, which results in more jobs, has little to do with taxes, but about where they go. You can NOT have a healthy economy when the leech sucking its life blood has grown to such massive proportions.
Let’s examine the facts:
U.S. 2014 Gross Domestic Product: $17.528 Trillion. The total national debt is $18.527 trillion. That’s 106%, and greater than at any other time throughout U.S. history, with the sole exception of during World War II.
The problem is the size of our government, which sucks 25% of our GDP away in taxes and can’t figure out how to balance the budget, sending us deeper into debt every year. Much production has been outsourced because it’s become far to expensive to conduct operations in the U.S. when competing firms spend a tenth as much for labor elsewhere.
There’s only one viable long-term solution, and it’s a three-parter:
1. Cut the size of the government in third. Our government’s expenditures should never be more than 10% of the GDP, and it’s best to set a target that’s just 7% with a mandatory balanced budget. Doing so will free up trillions of dollars for productive use rather than parasitic.
2. Abolish the IRS. Replace it with a simple flat rate tax of no more than 7%, to be applied to all gross income, regardless of source.
3. Forbid the use of the tax system for providing incentives. That’s the primary reason why it’s grown to be so ridiculously complex. Provide for a separate system of grants and subsidies for the express purpose of providing incentives for certain desirable behaviors.
Fifty years of fiscal history clearly demonstrates our nation is in an accelerating downward spiral. The overall health of our nation hinges on it’s fiscal health. if that suffers, everyone suffers. Clearly, changes are required.
The question is, will our federal government ever have the discipline required to cut its own fat and help restore our nation’s health? Or are we stuck in this hellacious fiscal madness?
Time will tell.