We are broke. Sad but true. Greece finally passed their new austerity program but not without riots and revolt. Italy is on shaky ground and Spain is rumored to be next in line to seek relief with billions infused. Are we next? President O’Bama warns that we need to increase taxes and he is correct. Our Nation and the economy are on a collision course for disaster without immediate change.
INCOME TAXES WILL EXPLODE HIGHER
And there will be change (hopefully not just nickels and dimes) the question is how much change? And will you be ready and be able to thrive for the Teutonic shift coming? How can we be certain change will occur? Because we are living with the lowest tax rates in modern history! The top income tax rate is that for every dollar you earn, the most you would ever have to pay in income taxes is $.35 cents. And that is just incredibly low.
After WWII in 1944 our income taxes sky rocketed. Back then for every dollar earned the most anyone would pay was $.91 cents. In other words, you the high income earner got to keep about $.09 cents of each dollar you earned. And, this was not the highest tax level. For three years between 1944 and 1964, the highest income tax rate hit 94%! So for every dollar earned high earners would only get to keep about six pennies… from each dollar!
And there were no tax cuts for capital gains… and now we have a national debt that is staggering, literally. Our debt, the amount we owe as a nation, is $14.5 trillion dollars! That is stunning. And we add more to this amount at a rate of about two million dollars per minute.
Do not kill the messenger but profit from the knowledge of what may lie ahead. Fact is that 48% of American taxpayers pay ZERO tax. And while many of these no income tax paying Americans are the rich with sophisticated tax planning strategies and write offs and deductions, the larger problem is that the “poor” in America far outnumber the rich and they too pay ZERO income taxes.
Just imagine if everyone had to pay a simple flat tax of say 15%. No matter how many deductions or tax avoidance plans you employ, a minimum flat 15% is collected on every earner at every level. And this would include corporations (which currently pay less than individuals as a percentage of their gross income).
This would solve our budget deficit and begin to reduce our national debt immediately. But until this occurs, you can make a difference now. Vote with your dollars and just stop buying things you don’t really feel that you need. Make a game of it… set yourself and your family a goal and a time frame to see how your life may improve with less stress and less stuff. We love to see weight loss on the biggest loser and I bet you’ll love even more learning how much better you will feel trimming your monthly expenses.