The American politicians against increasing the taxes of the rich are actually assisting the rich in becoming poorer as we speak …. just as the Greek government in refusing to increase taxes has debased their own currency into default mode. Are the wealthy and middle classes richer or poorer when their stock market collapses and banks wont lend to them ?
The same applies in the USA …..the answer is to increase taxes of those that can pay so that will help keep the value of all their assets from collapsing to Nil.
The ramifications are horrendous if the American politicians don’t think outside the square and worry too much about their own political survival. The Congress members themselves should be able to explain the real wealth benefits of increasing income taxes to protect their constituents assets would be a compelling argument surely.
I should add that increasing taxes on the wealthy is a small price to pay to help to protect their own capital wealth. In contining to resist the proposed tax increases, your politicians are not doing their voters any favours if as a result of world perceptions the USA financial system is weakened by the increasing deficits then financial markets continue to dive by such a magnitude that ALL CAPITAL GAINS over many generations will be wiped out completely in so few months time.
If only your politicians and your treasury officials could explain this simple reason why all businesses should pay increased taxation. It would be a WIN WIN for everyone including us in Australia who have invested so much of our Superannuation funds in your stockmarkets.
For those of you who fear giving too many benefits to the poor, you should not be concerned as they in true Keynesian spirit will spend that government outlay back into the businesses who worry so much about paying an increased tax. The multiplier effect would benefit your sales and the residual net profit increase will be measured x 10 or more price earnings ratios. At its simplest explanation, if a business pays an extra $1,000,000 in tax and if $500,000 would go to reduce the deficit the other 50% or $500,000 is quickly returned in the way of increased sales amount, then, surely your price earning ratios after expenses should return you back the original $1,000,000 in the form of a capital gain. Everybody wins and the stock markets in the USA do not obliterate your total capital during stock market jitters.
An important observation I’d like to make is that until recently I would have said that in USA you had a system of having an elected dictator who had enormous power. This belief was shattered completely during the recent haggling by congress regarding increasing your borrowing and interest payment limits if i understood the fuss to be about. I instead saw your President as being financially impotent and having no power whatsoever unless your various congressmen agreed to comply with your Presidents wishes.
As far as what USA government role should be, appears to been lost in history as government officialdom took more and more power away from your citizens who let their rightful rights be stripped away from them and now in the hands of a group of dictators in your Congress, but not your President. This has not always been a bad thing in my opinion especially during the G.W BUSH jnr Presidency when thankfully your administration made sure he did not stuff up completely. However, your Congress have destroyed the role of the President when it refused to deal with President Obama’s wish recently making him look like an impotent lost politician. It was not a good look and i believe your Congress made a terrible error in judgement and did then and now put at risk the asset values of all the wealthy they seek to represent. It was a serious matter which needed to be resolved much earlier when the world was looking at your government for leadership…IT FAILED MISERABLY.
Luckily the general public will forget and others did not view it in the way I have described it…but for your god’s sake can we see some responsible Congress leadership on these matters in the future? gillysrooms.blog spot.com from Australia.
