Today, in a still weak economy, raising taxes has moved from being the “last thing” to do to being Mr. Obama’s top priority. The First thing he will do. On the Obama administration’s to-do list are
higher taxes on dividends, capital gains taxes, and taxes on high-earners, taxing interest income, taxing overseas profits, and of course last but not least inheritance taxes. As a result of all these taxes I predict the economy does not get better but gets worse. Ask yourselves have you ever been hired by a poor person?
1. LOST JOBS: Many businesses go bankrupt, because they can’t afford to operate after government takes it s cut. Other businesses flee the country, to escape the high taxes. And still other businesses must cut their payrolls to stay within their incomes. The result in each case is the loss of jobs those businesses provided in the economy.
2. SHODDY PRODUCTS: Multiple governments levy so many taxes on businesses that “taxes” is the highest budget items on the ledger sheets of most businesses. These taxes take away money otherwise used to improve quality. Instead, businesses must cut corners to make the products and pay the high taxes. Many recalls are the results of businesses cutting too many corners, to save money so they can pay the high taxes.
3. LOWER WAGES: Multiple governments levy so many taxes on businesses that “taxes” is the highest budget items on the ledger sheets of most businesses. These taxes take away some of the money otherwise used to pay wages. So employers can’t pay good wages.
4. HIGHER PRICES: Multiple governments levy so many taxes on businesses that “taxes” is the highest budget items on the ledger sheets of most businesses. Businesses have to raise prices to get money to pay these taxes. So product prices go up. This leads to inflation.
5. CHRONIC RECESSION: The high taxation takes so much away from the economy that it enters a permanent form of recession. If government tries to boost the economy with increased government spending, the result is stagflation (simultaneous high inflation and unemployment) instead of prosperity. The only cure for stagflation is to cut both taxes and government spending. But this takes time to happen, keeping the effects of overtaxation in place for a time after the overtaxation ends.
Stop asking for more from government. You will regret getting what you asked for.
The people who say that taxes must be raised to help the economy are out of their minds.
Their desire to “help the economy” instead causes inadequate incomes, low wages, high prices, shoddy merchandise, product unavailability, product discontinuation, lost jobs, mortgage foreclosures, rental evictions, sheriff sales, homelessness, poverty, crime, chronic recessions, and a loss of purchasing power for all governments. It’s time to end the power of government to create such A mess with a tax ceiling. A TAX CEILING is a constitutional amendment that prevents government from taking more than 10 percent of the income of any person, family, or business.