Income taxes are the dues we pay to be a U.S. citizen. Many things we require are best provided by our government. Examples are national defense, roads, Social Security and Medicare. These are benefits we enjoy and must pay for.
Our government can get into situations (wars) that temporarily bust our budget, causing a temporary increase in our national debt. So it’s OK for us to temporarily fail to pay our way, the idea being that in the long run we can make up the loss. Unfortunately, we have let this free ride get out of hand. Currently, our national debt is $20 trillion or about $167,000 per taxpayer.
With your average household income of about $56,000, do you feel comfortable with your share — $167,000? We got a little behind on our dues didn’t we? Basically, we are not paying our way.
So why do politicians tell us they are going to lower our taxes and it will make us all better? They tell this lie to make us feel good and to get elected. They tell us that if we pay less tax we’ll have more jobs and more people will spend more. This extra activity will bring in more tax dollars. Historically, this has not happened and it’s this thinking that got our debt out of hand. Actually we may need to raise our taxes.
The interest on our debt is about $256 billion per year at the lowest interest rates we have seen in years. Consider what can happen with inflation and interest rates tripling — going from a mere 2 percent to a still low 6 percent. We already have a deficit of $590 billion so this already high deficit could then rise to about $1.4 trillion; more than one third of our national income of $3.3 trillion.
One dollar out of three may be required to just pay our debt interest; a catastrophe for the USA. Folks we have got to stop listening to the lying politicians and get serious about paying down our debt. Inflation and higher interest rates are just around the corner. Next time vote for a candidate that wants to lower our cost, deficit and debt, not our taxes.
Lowering corporate taxes actually makes sense and works. It would in fact make our corporations more competitive worldwide and help keep jobs and businesses here.
Understand this; corporations don’t pay taxes; they just collect them from us. If, today, we raise the taxes by $1 on each hamburger made in the USA, guess what? Tomorrow the price of a hamburger will go up $1. They simply will collect from us that dollar to pay their taxes.
Remember a dollar represents a quantity of labor from a human being. Corporations are not humans and do no labor. Ultimately, humans pay all taxes so let’s take the “collection burden” off our corporations so they can compete worldwide and stay here; makes good sense to me.