Odessacon would like to welcome JDog as financial expert.

JDog’s BIO
I have spent all 32 years of my business life in the financial industry, principally engaged in the trading of currencies, commodities and securities in the international arena. In my early business life I found it extremely interesting to learn and watch economies, other than just the United States. That interest continues today. As such I have learned the reactions of not only the “markets” to specific monetary policy(s), but also the general population’s reaction too. Today, what too many Americans fail to recognize is the absolute globalization of economies and workforces. Domestic policies that used to work in the ‘70s, ‘80s and ‘90s are just obsolete. A U.S. economic policy intended to extract “X” from Americans, is felt by and reacted to a multitude of foreign countries and their markets. Failure to foretell the reactions of foreign entities is the perfect recipe for failure.
TAXING THE RICH
Sounds good to me. Sounds like a logical solution to part of our government’s deficit. Why not?
First, before we can tax the “Rich” we have to define “Rich”. Is rich really an individual income of $200k or a family income of $250k, (Top 2% of income producers)? Well, it certainly may appear so if you’re making $40k for your family of four. I beg to differ. A family of four with an annual income of $250k has the ability to be self-sufficient and clear of any financial needs from the government; I see this as a good thing. This family can afford their medical expenses, fund the children’s college needs, make their mortgage payment, buy a new car every 5-6 years and save enough money for their retirement. By increasing this family’s tax burden, we simply move them closer to relying on government assistance; this is a bad thing.
Lets’ look at the top 1% of income producers; $800k for a family. These people have excess income after assuring their independence from government assistance. They also have the disposable income that can be used as venture capital to start new enterprises that generate the vast majority of permanent new jobs. These are the people that spurred the dotcom boom. These are the people who spurred the housing boom. These are the people that have the greatest tax loopholes!!! These are the people that have “off-shore” accounts and “charitable foundations”. These people are beyond self-sufficient, they are “Rich” by any definition. But, do we really need to raise their taxes? I say No.
What we really need to do is simplify the tax codes by eliminating many of the “loopholes” that only are within the reach of a few. Did you know that you can contribute 50% of your annual income to charity - tax free? So, the Clinton’s, Gate’s, Buffet’s, etc. put 50% of their income into THEIR charitable foundation and avoid the tax liability. Then, the foundation pays for their travel, hotels, limos, lunches, dinners, autos, boats, country club(s), etc. All they have to do is “mention” their foundation and the expense qualifies.
In most industrialized countries, a tax bracket is just that. If Sweden taxes “rich” individuals at a 35% tax bracket, that is exactly what is paid to the government; no deductions/loopholes. Did you know that Warren Buffet readily admitted that he only paid 17% in taxes for 2009 (total for Federal, State and Local), while his Administrative Assistant paid 34%? This was made possible by the loopholes, nothing else. Even Buffet advocates simplification of the tax codes; and he’s really rich!
But STOP. Is raising or collecting more taxes going to solve ANYTHING? Any answer other than NO is just plain wrong. No increase in tax rates or revenues (on the “rich” or otherwise) will provide one ounce of relief unless our government STOPS spending. This is where our government loses the faith of the people. Why would anyone advocate increasing taxes on anyone when our government is uncommitted to reducing their spending habits? How can ANYONE believe that any increase in taxes, on anyone, is a good thing when historical evidence proves our government will find a way to squander it?
I’m all for increasing taxes, even on the families making $250k per year, but it MUST be offset with a dollar-for-dollar decrease in government spending. If that means cutting Entitlement programs, cut them. If that means raising the Social Security age, raise it. Our Government can’t afford its current deficit with interest rates at .25%. What shall we do if interest rates rise to 5%!!!
Raising taxes without equal cuts in spending is merely CHANGE for the worse – for EVERYONE.
JDog