Taxes are most likely to change

Taxes are on the minds of every politician in Washington these days.  In something to think about, I talked about the changes in the tax brackets that can happen if no new laws are created before the end of the year.  The more and more I see the coverage in the news regarding taxes, the more I feel that I don’t have a clue about what will happen.  On one hand, if gridlock is maintained over taxes, on January 1, we all start owing more to the government.  On the other hand, if somehow some type of legislation does get passed, it will likely be the case that taxes have been increased on the highest income bracket.  This would mean that Republicans would have actually voted for a tax increase, yet they would have been able to avoid higher taxes overall for the entire population.  This is quite the Catch-22, and I really don’t know which way it’s going to go.  Here’s a nice article for physcians about increasing taxes that might make you feel a little better.

Higher taxes are Obama’s goal

Obama wants to have higher taxes.  That is absolutely crystal clear.  He has been reelected, and he can clearly proceed without any worry on this higher taxes agenda.  As it appears now, Obama will get exactly what he wants in either scenario.  ( Here I talk about the way to think about it and prepare for this potential increase.)  If nothing gets done, he will be able to blame the Republicans for their inability to negotiate and will likely come out on top.  If taxes are increased before the end of the year, again he wins.  Obama can also come out ahead on taxes if the Bush tax cuts expire and then, new legislation is passed in the beginning of 2013 which does the exact thing that Obama wants in increasing the tax rate in the highest tax bracket.  Republicans may see this as an opportunity to portray themselves as lowering taxes even if they raise taxes on the highest tax bracket.  Again, I have no idea which way they are going to go with this.  Neither way looks very  promising.

Either way taxes suck

I hate taxes rant begins……… you know why higher taxes really, really suck?  I personally believe that the income tax is an abomination and the confiscation of wealth by taxes is inherently evil.  Yet, even if you are someone who believes that taxes is a way of life and is your duty to your country or to your government, don’t you realize that higher taxes do not fix anything in Washington or in our society.  The more money you throw at government programs that do not solve problems, the worse the situation gets.

But even if you approach this from the rational side and you say that in order to do anything about the rising debt and the fiscal obligations of the nation that you must raise taxes, the problem still cannot get solved.  The only way that the problem gets fixed is if the politicians in Washington actually spend less than what they receive in tax revenue.  This never happens!  Spending will increase every year, and they will always spend more than what they receive.  So, the argument that we the people need to pay more in taxes in order to help offset the cost of government does not hold up.  In actuality, the government uses the opportunity of increased revenue to actually spend more!  So, I will never become part of the crowd that thinks that anyone should pay more in taxes.  Until next time, here’s to your wealth.

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