In another thread, it was stated that we have the lowest taxes in the world. This is a myth. What happens is that politicians cannot tax our income any more then it is or they will eventually get voted out of office along with the rest of their party. Income taxes will never go up...however, every other thing that can be taxed will be taxed and the cost will eventually reach the tax payers.
For example, gasoline. The price of gasoline is comprised of 18.4 cents federal tax and another 20-30 cents state tax. Many people dont know that a good chunk of what they pay at the pump is really taxes. So every time you pay at the pump, the IRS is right behind the station collecting some of that money you hand to the attendant. Well, I could go on through a list of examples endlessly, but I will make one more example.
Corporations are heavily taxed and regulated in pretty much everyway you can conceive. The prices you pay for goods are again part taxes. So you went to the store recently and saw the price of juice at 6 dollars a gallon. 1-2 dollars of that is probably taxes....not to mention the money to pay for the taxes was also probably taken out of the pay of the store employees.
As you are taxed more and more then there comes no incentive to work. Why work when all of your money is essentially given away to the tax man? Why own a home when property taxes are so high?
As the European economies have learned the hard way, the more taxes there are the more unemployment that exists...so how does Europe tolerate such high levels of unemployment? They do it through entitlements where no one has to worry about health insurance and lower income people get lots of hand outs. You can essentially live for free in places like Greece...the problem is that eventually someone has to pay the bill....
So the way to solve the employment issue is lower taxes and deregulate dramatically much like Reagan did back in the early 80s. As it is, we will probably be stuck here at this level of unemployment until Obama is voted out of office and a person can come into deregulate. Already Obama is going down the entitlement trail just like Greece, Spain and Britain which are now facing severe economic crisis with riots in the street and folks getting killed...
http://personalmoneystore.com/moneyblog/2010/04/08/laffer-curve-explaning-taxation-theoretically/
For example, gasoline. The price of gasoline is comprised of 18.4 cents federal tax and another 20-30 cents state tax. Many people dont know that a good chunk of what they pay at the pump is really taxes. So every time you pay at the pump, the IRS is right behind the station collecting some of that money you hand to the attendant. Well, I could go on through a list of examples endlessly, but I will make one more example.
Corporations are heavily taxed and regulated in pretty much everyway you can conceive. The prices you pay for goods are again part taxes. So you went to the store recently and saw the price of juice at 6 dollars a gallon. 1-2 dollars of that is probably taxes....not to mention the money to pay for the taxes was also probably taken out of the pay of the store employees.
As you are taxed more and more then there comes no incentive to work. Why work when all of your money is essentially given away to the tax man? Why own a home when property taxes are so high?
As the European economies have learned the hard way, the more taxes there are the more unemployment that exists...so how does Europe tolerate such high levels of unemployment? They do it through entitlements where no one has to worry about health insurance and lower income people get lots of hand outs. You can essentially live for free in places like Greece...the problem is that eventually someone has to pay the bill....
So the way to solve the employment issue is lower taxes and deregulate dramatically much like Reagan did back in the early 80s. As it is, we will probably be stuck here at this level of unemployment until Obama is voted out of office and a person can come into deregulate. Already Obama is going down the entitlement trail just like Greece, Spain and Britain which are now facing severe economic crisis with riots in the street and folks getting killed...
http://personalmoneystore.com/moneyblog/2010/04/08/laffer-curve-explaning-taxation-theoretically/
