Tax Resolution Services, Co., founder and CEO Michael Rozbruch explains why the government’s plan to increase taxes on the wealthy will not eliminate the deficit.
Online PR News – 27-July-2012 – CA – Encino, CA, July 26, 2012 -- One of the upcoming election’s hottest topics is clearly how to balance the budget to reverse the ballooning national deficit. Over the last several years, the federal government has spent over 5 trillion dollars that it didn’t have, and just through June the budget deficit has already hit $904 billion. Some argue that the answer is to tax the rich; however, when the numbers get crunched it’s clear that taxing America’s most wealthy citizens will not even come close to accomplishing the goal of balancing the budget. It’s actually a joke to even suggest that it would.
“Increasing taxes on people earning $250,000 or more is not increasing taxes on the ‘wealthiest Americans,’” said Michael Rozbruch, founder and CEO of Tax Resolution Services, Co. “The wealthiest Americans earn a million dollars and much more. You also have to look at what is the desired result by doing so. Experts have stated that this will not make the smallest dent in our national debt.”
To that end, Duquesne University economics professor Antony Davies posted a video on LearnLiberty.org explaining that taxes would have to be raised to astronomical proportions on the rich in order to eliminate the deficit. Additionally, CNBC reports on a recent study that when states have attempted to raise taxes on the rich, the rich have simply moved to another state. In this instance people may move to another country.
If such tax measures are implemented on a national scale, it’s not unrealistic to imagine that the rich could simply leave the country. Such an occurrence would truly wreak havoc on the nation’s tax base. So, then, what is the solution?
“Where would this extra money go toward? More entitlement programs? Expansion of an already ginormous government? Instead of proposing something that will divide us,” said Rozbruch, “we should be looking at ways to implement a flat consumption tax, which is far more equitable for everyone concerned.”
Some flat-tax opponents argue that it wouldn’t be fair because wealthy citizens would not be taxed on investment income on stock dividends, etc. However, some have proposed an amendment that would allow most of such income to be subject to the same flat consumption tax percentage. Not only would such a tax be more fair and equitable, it would also simplify the tax code, which would likely reduce the intrusiveness of the IRS on people’s lives.
The ultimate goal is to find a tax system that works for everyone, and recognizing the implications of tax hikes on people earning more than $250,000. “Making $250,000 in the United States’ major metropolitan areas (where most people reside) is just getting by in today’s world, especially if you throw in a couple of college-aged children,” said Rozbruch. “Additionally, people who have small businesses and file their tax returns as sole proprietorships (with employees) will be deterred to hire additional employees because they will now have to consider that more of their earnings will go toward paying more taxes—money that could have been spent on goods, services, and hiring employees. It’s a recipe for disaster that could put us in the same kind of trouble that much of Europe is experiencing now.”
And what about the expected and unforeseen costs related to “Obamacare”, especially for small businesses, which really are the “engine” for this country’s economic growth. This November’s election will probably the most historic and significant election in decades, past and future. It will define what Americans want their America to look like. It is a stark choice. A lot is at stake. Vote responsibly!
Visit Michael Rozbruch’s blog for more on this and other key tax issues facing the nation.
About Tax Resolution Services, Co. (TRS)
The tax attorneys, CPAs, EAs, and tax relief professionals at Tax Resolution Services, Co., pioneered the tax resolution industry. They have successfully settled thousands of cases over the past 14 years, and are committed to providing affordable, competitive solutions to businesses and individuals. Got IRS stress? Contact TRS. To find out how TRS can help, or to receive a free tax problem consultation, visit www.taxresolution.com or call (888) 851-5894.
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