The Democratic tax increases will pave the way to hyperinflation and the devaluation of the dollar. Obama’s attempt to manipulate the tax code is the same old political maneuvering that has gotten America into the fiscal crisis we find ourselves in today. Everyone should understand that this complicated, unfair, and corrupt tax system exists only for the benefit of the politicians and not the taxpayers. The Fair Tax Act is all that’s necessary and maybe a law that makes it a federal crime for politicians to use taxpayer’s money for their own personal benefit or any other type of reward or penalty, the tax code must be fair and equal to all no matter what business you do or what political party you choose to support.
As the tax code is written today it’s mere complexity allows politicians to simply point fingers at each other and blame the last guy or the other gal for whatever the state of the economy is in, it’s complexity makes it near impossible to prove wrong doing. A simple tax code would allow transparency making it easier to hold people accountable for waste, fraud, and abuse. How this whole tax fiasco affects the people on Main Street is the only real issue that belongs in the quarrel.
The argument used in the attempt to raise taxes on the rich doesn’t hold water. Consider this, if the taxes are raised as the Democrats would like, on those earning $250k and over, it’s acknowledged by most that this group is predominately small business owners making less than a million dollars and unfortunately these are not the major job creators. The main job creators, businesses making more than a million dollars a year are the ones creating 60 to 70 percent of the new jobs.
It’s natural to assume that by increasing the tax on this group it would take the burden off the less fortunate middle-class taxpayers; however that may not be true. Being in the business arena for over 40 years I observed this, those making millions can afford to take risks, some will simply liquidate their businesses and invest their holding in the financial markets. Those that choose to remain in business will simply raise the price the middle-class pays for their products and/or services.
This will result in the loss of jobs and higher costs for needed products and services. In effect, this will trigger hyperinflation and the devaluation of the dollar. Who will pay the price in the end? You guessed it, the middle-class, who else? The only way to get out of debt is to force our representatives to reduce the wasteful, out-of-control spending and pay down the debt, in other words become responsible caretakers of the peoples money. Until then, I will continue supporting candidates that take the Norquist Pledge that requires them NOT to vote for ANY tax increase until the sanity is restored.
The introduction of austerity measures is inevitable, we can implement them in a controlled matter or they too will be crammed down our throats. More government spending will only increase the years of contraction that will follow. The dollar as the reserve currency is at risk and if that ends, America will follow the USSR, a crumbling federal government that failed its people primarily caused by the greed of the representatives.
