Higher Taxes Tomorrow? Part 1
There are three reasons why I believe that we ALL will be paying more taxes in the future. As such, I have created a three part series of blogs to reflect my reasons as to why I know there will be higher taxes tomorrow. The following is Part 1:
U.S. Debt Burden:
America is currently in serious debt. The largest debt EVER in the country’s history! In order to reduce this debt, one of two things have to happen: 1) Reduce spending (by cutting Social programs), and/or 2) Increase revenues (in the form of taxation). It is unlikely that the United States Government will reduce spending on such hot topics as Social Security, Medicare and Medicaid. It is far more likely that they will increase taxes (revenues) instead as this is the “path of least resistance”. The government has not currently undertaken the increase of taxes because of the recent poor health of the economy. Raising taxes just when things are starting to pick up would be counter-productive for the politicians. However, when we are on a strong footing again, the chances of higher taxes in order to reduce the size of the debt are greatly increased!