Government’s economical need for increased personal and business taxes is the same as any business. They simply must have more income than the amount that goes out.
This is not rocket science, just straightforward common sense and the only way to balance the books. Many people complain about paying any tax, let alone agreeing to pay more tax, even though it would help the Country that provides the services that we need and use every day.
If you take another view of paying tax, surely every one of us would like to be the largest taxpayer in the USA simply because we would be earning more than anybody else. So paying tax is not such a bad thing!
Before harsh austerity measures are used, consider the downside. Government cuts would affect the various services we take for granted, ceasing us to function as a successful society. Do we want a road full of holes, and our children in a class of 50? No firemen, police or paramedics to respond when we are most vulnerable? These are some of the consequences. If government income does not increase, it cannot maintain the excellent services available to the public.
Every business, including governments, face difficult times and looks for ways to increase sales income and reduce running costs. But they have to make sure that any cuts they make do not affect the vital services of their business and in return affect their sales income.
They must consider what tax increases can be made that would not cause too much pain. One easy target is to add $.10 to every gallon of gas that is sold, this would produce an income of $ billions. This additional income could be used to reduce dependency on oil and help produce research for alternatives fuels much quicker. It will also help reduce the country’s incredible debt deficit.
Perhaps it is time to take away, or reduce, the tax write-offs on loan interest. I believe the tax break on mortgages cause more harm than good. It encourages people to borrow the maximum amount of money, which everybody knows will only further contribute towards the mortgage meltdown and make more home empty due to nonpayment of mortgages.
Recently, the leader of the House said how complicated the tax code was and it needed simplifying. I don’t think anybody could legitimately argue against this. Instead of the House using the usual blame game that often rears its ugly head causing proverbial stalemate, both sides should get together and give this a priority. Just think of the advantages it will offer the public and put party politics to one side!
The US debt has to be reduced because the interest payments are off the scale. It’s what I tell people I mentor. When you borrow money, your income will be accounted for before you see it. The lender comes first, no matter the circumstances.
Government is no different. They may be able to delay interest payments, but all that does is rack up more interest. The only way to attack the financial deficit is more tax with some considered cost reductions. Particularly, increased taxes on expenditure will deal with the issue more effectively and quicker. Perhaps a 1% Federal sales tax would not be too painful.