Sunday, July 25, 2010

Kill Bush Tax Cuts?

I came across this article on The Huffington Post.

According to the article, the Treasury Secretary thinks ending the Bush tax cuts would be "the responsible thing to do."

He has also said that "he does not believe that higher taxes for those high earners will hurt economic growth."

I happen to disagree with Mr Geithner.

I think it will hurt economic growth. I also think it will hurt the country in more ways than one in the long run.

Here is what will happen:

You raise taxes on the rich.

The rich hold back on some of their investments in the stock market and look for other areas to invest, i.e. foreign markets.

Then, those that are wealthy and own large corporations begin to find other ways of cutting costs in their businesses, such as reducing their workforce (which leads to higher unemployment) and/or moving their workforces overseas (which, again, leads to higher unemployment and also leads to another ecnomic downfall in the United States).

So, quite simply, I think that raising taxes on the rich is not a good idea.

But I do have a good idea to fix the tax problem. Urge your Senators and Congressmen to enact the FairTax.

You can read more about it at the following websites:

Official FairTax website

Fair Tax Wiki article

Fair Tax Facebook page

Mike Huckabee explains the Fair Tax on YouTube

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