The last thing our economy needs right now is for the government to be taking more capital from the private sector and out of our economy. Really, raising taxes is not a smart move – on anyone, or any business. There is no justification for siphoning more money out of our troubled, capital-deprived economy – period!
Politicians who supported the behemoth bailout package – including the two presidential candidates – rationalized that the taxpayer bailout would quickly infuse much needed capital and credit into the economy – into the hands of “Main Street.” Things were stuck, the economic engine was clogged. Taxpayers to the rescue!
That being the case, how can any politician reconcile their support for a bill that gives (ok – “lends”) billions upon billions of tax dollars (money – capital) to these larger firms in the name of shoring up troubled assets and credit markets, at the same time defend (and aggressively so) raising taxes on entrepreneurs or more “successful” individuals? The position is untenable.
Capital, credit and cash flow is extremely tight right now. Wouldn’t you want business owners, investors and entrepreneurs who may have some discretionary profits at their disposal putting these dollars back to work -- in their firms, their workforce, their communities and perhaps other business ideas?
And even if “the rich” lavish themselves with a vacation, new clothes, another big-screen tv, a home renovation project and a couple of nights out at their favorite restaurant – isn't it better that these dollars are spent more directly by consumers – as opposed to being re-circulated by government (or wasted as the case may be)?
We can endlessly debate what percentage of the population earns more than $250,000 or $200,000 -- or now (thanks to Joe Biden), $150,000. We can debate the merits of raising the capital gains taxes and who is impacted by these tax hikes.
The fact remains that Barack Obama says he will raise taxes, and I believe him! Many small businesses and entrepreneurs – the high growth, high performance, innovative, job-creating firms that we actually need to be rewarding with more tax relief, not punishing -- will surely get hurt. But do you really think that a Congress that is already on record supporting a deeper, more massive tax hike will stop at an Obama-established threshold?
Look, the starting point for candidate Obama is his tax plan – it raises taxes. Mark my words, after spending a couple of decades in this town, my bet is that the end point for hiking taxes will go deeper, much deeper.
Karen Kerrigan
President & CEO
No comments:
Post a Comment