Taxes…Yep, It’s Getting Political Like Always
“Read my lips, no new taxes,” George H. W. Bush said during his 1988 presidential campaign.
A line that haunted him during his 1992 reelection since he couldn’t follow that catchphrase. Many things that Bush couldn’t control caused him to increase taxes. Nothing against him, but war happened, crises occurred, bills rolled in.
Then comes Clinton. He swooped in and enticed America and was re-elected in 1996.
I’ve heard people say Clinton was the best president of this generation. If we can look past his personal scandals, we can’t look past the benefits of the country. The economy was better. Employment was better. Life was better – or so I have been told.
I’m not opposed to taxes. We need taxes. Taxes provide infrastructure, military protection, national parks for enjoyment, free education, and many, many other things that we sometimes overlook.
I am a CPA and I deal with taxes for a living. I hear people complain about paying taxes and if you are honest with yourself you do not grin when you see your tax withholdings on your paycheck or paying your estimated tax payments each quarter.
I heard a very wise woman near the beginning of my career which I still remember. I had to tell her that instead of getting a refund she owed more tax. She took out her checkbook and didn’t grumble. She looked at me and said, “I guess this just means I was blessed last year.”
Wow! I wasn’t expecting that, but isn’t that so true.
If you are paying taxes, you are blessed with an income. You are blessed with financial means. You are blessed.
I’m not trying to get political, but from an accountant viewpoint taxes are essential. But fair taxes.
Most of the richest people in America are not employees like myself. They are business owners. Business owners hire employees and pay their wages and benefits. Companies pay their employees federal and state unemployment taxes and they match social security and Medicare taxes. These taxes are set percentages, but still the companies are paying these taxes.
When the government demands higher taxes for higher income individuals (business owners), the first thing that business owners look at in cutting costs is wages and benefits. If taxes go up, they cause their employees to start paying more in insurance premiums, they deduct retirement matching contributions, they decrease wages and then ultimately they layoff employees.
People may say that the rich people deserve to pay more taxes because they make more and they will still have excess funds. Yes, they may still have excess funds, but like everyone, when their excess dwindles they look at easy ways to recoup that loss.
Increase in taxes usually causes layoffs. Decrease in taxes can actually cause employment growth because it allows the excess to be paid for expansion of their business which ultimately means new jobs. New jobs means a healthier economy for the masses, not the few.
You may think less taxes will be collected, but when business owners pass on their wealth to expanding their business it still causes taxes to increase through their employees individual income taxes, unemployment taxes, FICA taxes, sales taxes on their purchases, and property taxes for the increase of their tangible value.
You may think I am writing this post because the high tax rates affect me, but I’m far from the highest tax rates. I got a stimulus check in May, so I’m not pandering to help my pocketbook. I’m just trying to show a different perspective.
So before you vote, look at the candidates tax plans. Which one benefits you? Which one has the best plan? Which one will cause the economy to grow?
If something sounds too good to be true, it usually is.
Sadly, each side has economists that say their plan is the best one.
But you have to look beyond the opinions of getting votes and look at the facts. Look for yourself and decide.
Taxes may not be a deciding factor when you are casting your vote, but you need to know what you are voting for. The best voter is the informed voter.
Education is power.
Use your power.
Peace
