This is not the time to increase taxes
July 15, 2010
Are you looking forward to paying more taxes? At the end of this year, the Bush tax cuts expire and Democrats, who control both legislative houses and the executive branch, have shown no interest in reinstating them.
Income tax rates will increase 3-5 percent, depending on income levels. The ‘death tax’ will be reinstated; if you die in 2011 or later, your heirs may have to pay up to 55 percent of your estate value in taxes. Capital gains taxes will dramatically increase; child credits will decrease. And then the first wave of taxes from the health-care bill will hit.
The administration has appointed a panel to find additional taxes to fund the spending programs (health care, TARP, Stimulus, etc.) that have been implemented in the last 18 months. The panel is looking at a Value Added Tax (federal sales tax) and a Net Worth Tax (to ensure that no one accumulates wealth). These would be added to income taxes, inheritance taxes, and health-care bill taxes.
Taxes impede growth and employment. This is not the time to increase taxes.
In November, vote for candidates who will lower government spending instead of increasing taxes. “Government by the people” only works if people participate.