I don’t know about you but I for one am tired of hearing higher taxes are the only answer to reducing the federal deficit, the elephant in the room is the size and cost of the federal government itself! There are three things that can work together to resolve our financial crisis; 1) Start shrinking the size and cost of the federal government and make it a continuous process. 2) Provide incentives to small business in America through deregulation and strategic tax cuts. 3) Move the country to a true flat tax policy or a national sales tax policy either would be better than what we have today.
This seems just like commons sense, the jobs engine in this country is small business but the small business owners are the very people who are being taxed more. More regulation means a higher cost of doing business and the more a government inserts itself in the free market process the more difficult it is for small business to succeed.
What we want is a sound dollar and what we need for a sound dollar is more capital. Moving to a flat tax will cause money to move into our economy. Moving to national sales tax could cause many trillions of dollars to be put to work in our economy again. Tax policy is the most powerful motivator when it comes to attracting investments. Today American businesses are among the most highly taxed in the world, is it any wonder more and more of these businesses move out of this country? Better Tax policies can bring much of that back and put people here back to work!
Even with a lower tax rate, tax revenues will grow right along with the economy as new jobs are created. True sustained economic growth will increase the amount of money available for Social Security and Medicare and can buy the time needed to reform those entitlement programs!
Remember, each government job added puts a higher amount of expense on the people and requires more tax revenue to pay for it. These jobs only guarantee an increased cost of government, the exact opposite of what our country needs today!
In case you did not hear the government (or our non representative representatives) are looking at adding a Value Added Tax on top of our Income Taxes! A VAT is a tax that is hidden and it adds tax at each stage of production which adds value! This type of tax will be the greatest private job killer this country has ever seen! Please tell your senator or congressman to vote NO on VAT taxes!!