I have tried really hard to stay out of the political battles, but I need to weigh in on this one. The trillion dollar tax increase President Obama wants, on top of the half trillion tax increase imposed in the health care bill will sink our economy. The following graph shows the top tax rates in the US since the income tax was implemented in 1913.
The tax started at 8.5% with a promise from the politicians that it wouldn’t go up. Note that it went way, way up almost immediately. It came back down under 30% during the 1920s. The economy went nuts in the 1920s. They were called the “Roaring 20s” for a reason.
At the end of the 20s, Herbert Hoover raised the tax rate through the roof. That was one of the primary factors that plunged the nation into the Great Depression.
The economy didn’t “roar” again until Ronald Regan lowered taxes to under 30% in the late 80s. The economy went nuts after the taxes went down, and we did well until the entitlement of “Fair Housing” and the greed of the mortgage industry and Wall Street drug us down.
I firmly believe that if taxes are raised now, the great depression may well repeat itself. With the proposed trillion dollar hike on top of the health care taxes and the “hidden taxes,” businesses will collapse. We have tons of hidden taxes, aka “fees,” on phones, property, airports, gas, and the list goes on. Those taxes are going up fast.
My business is asset protection, and I am getting more and more people coming to me with bankruptcy problems. Even I am amazed at what is happening. Fortunately we are able to help many of them. One man came to me after having his bankruptcy attorneys tell him he would lose $250,000 in assets. We were able to protect all but about $15,000.
There are so many people hanging on by their fingernails. Any tax increase will take them down and many others that are “secure now” will fail also. Please write your favorite congressman and senator now and oppose any new tax increases. Your voice needs to be heard.
Unfortunately, Washington–Republican or Democrat–in general doesn’t care about fixing the country. They only care about the next election vote. People like me and you who have always been silent need to take a stand.
To see a good explanation of the new tax increase proposal and taxes that are already in place set to strike, read the Wall Street Journal
PS. Please leave your comments below. I would love to know how you feel on this topic.