TAX NEWS - June 2010

US Tax: Will We Experience an Economic Collapse in 2011?

Of all the bizarre actions and plans coming out of the White House, the plans to dramatically raise our taxes in 2011 are quite out of touch with rational thought and reality.

We are in the midst of a severe economic downturn that has been made much worth by the economic stimulus plans and bailouts, which have also been quite illogical and very detrimental to our economy.  More taxes will do great harm to most of us.

Small businesses and investors need a promise of economic stability and greater cash flow in order for them to be willing to take risks, build their businesses, and hire employees.  Obama scares business owners and investors with the economic uncertainty his presence has created.  People are reluctant to invest and to take major economic chances.

The elimination of the Bush Tax Cuts in 2011 will pull a lot of money out of our economy.  This is money that people would use to build businesses, invest, and simply spend on goods and services.  Tax money does not stimulate the economy, as the government does not produce anything.

As the tax cuts of Kennedy, Reagan, and Bush 43 have shown, tax cuts dramatically stimulate the economy, which results in people and corporations paying more in total taxes.  Tax cuts are good because tax cuts stimulate the economy.

In addition to the yet unchallenged repeal of the Bush tax cuts, Obama is pushing for a Cap and Trade Tax and a possible Value Added Tax (VAT).  In addition, numerous and severe taxes on medical devices and services have occurred as a result of ObamaCare.

With the advent of devastating tax increases, people and corporations are moving as much future income as they can into 2010 income.  In 2011, income will dramatically fall, as will taxes.

Arthur Laffer, a highly respected economist, predicts the IRS and our economy will collapse in 2011 if tax increases are allowed to happen.

What Laffer predicts is frightening and totally preventable.  Simple tax cuts, with the promise of not raising taxes for five or more years, would have our economy roaring back to good health within a matter of a few weeks.

Tax cuts will not happen because a visible strong economic response to tax cuts would undermine the economic taxation hoax of the Left.  The Progressive Left uses tax increases as a means of punishing those who are willing to work hard and to take risks.  Harming achievers satisfies the needs of some Democrats to visit revenge upon those who would dare to work hard and risk much.  This results in party loyalty and votes.