The United States government is in gridlock. Democrats and Republicans are in a tug of war over fat cat taxes versus entitlement funding, with no deal is in sight. This political quagmire may even end up with our country defaulting on it’s loans. Democrats are hanging on to their entitlements with a death grip while Republicans are having seizures over tax increases for the wealthy. When politics outweigh good sense and the voice of the people, the American public loses. Let’s hope this school yard fist fight ends soon.
Should the middle class and poor bear the burden for the privileged few? Is it fair to add additional tax burdens to the elite minority? Tell us your thoughts Martin County.
I’m part of that group that would see tax increases and yet I support it. I also support tax cuts. I happen to think that the divide between rich and poor is extreme and the USA we all know and love is based on the idea and on the need for a large middle class. If we don’t tax the wealthy then we’ll begin to reverse progress and become like India or even worse, Mexico. Then a few will have everything and the many won’t even have the opportunity to excel.
I agree with Andrea as well, some of your wealthiest and most powerful people in the world such as Warren Buffett and Bill Gates have said publicly, they should be required to pay more taxes. There are no two better examples of successful businessmen who have made billions; and they agree they should pay more taxes. Maybe we should listen to these guys as it should be evident, they know what the heck they are talking about.
Anyone have an opinion about the concept of a “fair tax” where all federal taxes would be removed and a national consumption tax on retail sales would be implemented.
Without doing to much research I think it would be a great concept to try. Sure some would decrease normal spending, however the wealthy would still purchase expensive cars, outrageous houses and other toys at the expense of a larger sales tax.
It would also decrease income tax lost from illegals who are paid in cash and completely avoid income tax.
What’s your opinion Martin County?
I think getting around the illegal loophole is a huge way to generate tax icome.
On another note why aren’t taxing goods from Mexico and China at a higher rate. Besides the fact they use child labor, we are only encouraging businesses to move to other counties and subsidizing child labor/u fair labor practices.
A consumption tax was quite common in the 17th and 18th century. But the point behind them was to curb buy, as luxaries were consider a vice.
It seems to me, that a national sales tax will drive prices up and actually hurt consumption. Imagine a sales tax of just 10%. While the very wealth might not be effected, the poor will. You have to add that 10% to the average 6% sales taxes of the state, and quite higher for those that don’t have income taxes. That is a huge increase for people who don’t have much and a heavy burden on the middle class. (I hate using that term, we don’t have class distinctions like Euope).
the best way to stop the illegal loophole is to close our borders.
I agree that some tariffs need to bein place, but they too can be harmful if moved too high.
I know in Nashville they have a 9.25% sales tax but Tennessee currently has no state income tax to a certain threshold. Maybe this is something that could be explored elsewhere.
I agree we do need less government but folks like Wall Street can’t police themselves so regulation is a must. Greed doesn’t think about eating tomorrow, it just has to sate it’s hunger at the moment without regard to bystanders.
Regulation is a must, but we have too much now. This is why our businesses have trillions on the sidelines and aren’t investing them. The regulations are too much and there is a distinct anti-business mentality currently in power.
Ok so I just went back and read my other post and realized that I meant to say I support increased taxes for wealthy and decreased government spending. Both are trully needed to dig out of the hole. Also, I researched who the tax increases would effect and it’s the top 2% of wage earners. I wish I could say I was in that group. Lol! But seriously a good portion of those wealthy Americans are willing to pay more so let them. The idea of taxing consumption is a good one but I would have to see the numbers and I think it would be hard to budget for spending when you might be a little more unsure of the revenue.
We don’t need new taxes. We need better taxation methods. Our century old, progressive taxing system, hampers economic growth and development. It punishes those who earn, invest, create, and re-invest, and rewards those that don’t. That is the simple truth of the matter. When taxation rates are high; 45% or upwards, historically, economic growth usually plunges, as the wealthy are forced to pay 45cents of every dollar (or higher; it has been as high a 70% in the 1970s) is paid to the federal government. That does not include state and local taxes. Even if you are super-wealthy, that is a sizable sum of money. Imagine what investments in new technology and job growth could occur if tax rates were lower!
One only has to imagine their business. If you made 250,000 from being self-employed and you were taxed at 50%, you now bring in only $125,000. Add the roughly 10% in state and local taxes and it’s closer to $100.000. How much less can you now invest in expanding your business, making it better, and hiring new employes?
Take this same example and apply the only fair form of taxation of income: the flat tax. Flat taxes would tax everyone an equal percentage. While it would bring in less from the wealthy, it would expand the tax-base, and actually bring in more income to the federal government. Let’s use the example of the self-employed businessman.
Instead of losing over half his income to taxes, if he were taxed at a flat 12% at the federal level (the percent usually proposed), he his take home income would be $220,000; after state and local, it would be roughly $205,000. That is nearly half of his income he keeps – even if the percent were increased by a few points! This allows him to invest in his business – expand, develop, and hire more people. This also affords him greater discretionary funds, which fuels other businesses, their growth and hiring. With these new hirings, more people are making money thereby expanding the tax base.
A national sales tax is a bad idea, especially if added on from income taxes. National sales taxes will force inflation of all items – food and merchandise. It will actually hurt lower-middle and poorer people more than the rest. The artificial rise in food costs will hurt them.
The other side of the coin is the necessity for not just shrinking the size of the federal government, but slashing it. Putting aside the constitutional arguments for now (I’ll say here only that about 80% of federal actions are unconstitutional), the size of the government is a major hindrance. Over-regulation, bloated bureaucracies that require taxation to keep it fueled hurts job growth. There would be no need for higher taxation rates if the federal government were much smaller.
By cutting the size of government, you eliminate its need for more money – more taxes. Tax rates could even remain the same – both progressive and at the roughly 37% margins – and no worries of debt default if government did significantly less than it does now. And, we would be a freer people!
A must read…
I hear a lot about all these stifling regulations. Having owned a multi million dollar company and employed over 75 people, I can’t think of what “regulation” they’re talking about. Regulations that keep companies from hiring 100% illegal staffs and paying them $4 an hour? Getting rid of overtime after 40 hours? Maybe OSHA is too much, loss of limbs on a job site is just tough luck. THe bottom line is everyone eludes to these mysterious regulations, but no one ever gives specifics. Remember these CEOs are sitting in an office far and away from where the work gets done. They have no appreciation for the workers or their families. Sure I couldn’t pay my guys gobs of money but I was always 30% higher than my competition and knew all 75 by name. Business isn’t that hard when you quit whining and get the job one. You can’t lead from the rear and when I see some people actually getting their hands dirty, Ill listen to them. I think that’s only fair.
I don’t disagree to a point. But the federal government alone issues nearly 75,000 pages of regulations,a year!