Do you recognize the current tax proposals?
Instead of decreasing tax rates for every individual and family, these plans seek to reduce the compliance costs for large corporations, by decreasing taxes paid by companies and individuals, which will then lead to a decrease in profits, which will then lead to more corporate profits, which will lead to more corporate profits, which will lead to more corporate profits. This continues a growth of wealth going to the highest-earning Americans. This leads to fewer assets for the individual and family.
If that were not bad enough, those corporations who don’t pay their tax bills face risks of audit, litigation, recordkeeping and monitoring, and they have to take a risk to do their taxes. Regardless of the risk, those corporations do not have to pay the taxes the way, in the early 20th century, a person, a corporation, or a family had to. Today, those people do not have to worry about bankruptcy, payday loans, and neighborhood bankers trying to steal your money.
In actuality, you are richer than you think.
When you subtract income tax you are still much poorer than you think. I can prove this. Let’s say you make $100,000 a year, it is taxed at 39% and someone else makes $100,000 a year. Someone $100,000 a year is 40% richer than you because you have less money now, but you know you have less money, so you are going to sell all your assets and take the tax money and keep it. That person $100,000 a year has more than $10,000 more than you.
So there is no escape from the federal government’s stranglehold.
I talk to people everyday who are having trouble making it financially. I’ve met too many guys and gals who own a small business, work hard, and contribute to the economy in many, many ways to not know where they are going to find a real paycheck each month. The money they put into their business stays in the business and is on their life. And they need to close down their business because the lack of the business has created a problem.
If you think the tax gap is high, wait until you are diagnosed with cancer.
Is no one prepared for this?
Imagine if we had no skin in the game and we actually had an economy that allowed everyone to keep as much money as they could.
What if everyone had plenty of money to pass to their children so they would be financially stable?
Imagine that they had low taxes that did not turn into a larger tax burden as a family.
The dynamic would change, you would find it more difficult to build your lifestyle and society. Some families would have to go back to work, start a business again, work twice as hard, or stop putting their money into other areas to keep their own family stabilized.
Imagine if you could not spend money or have any pre-existing debt if you didn’t have a little cash on hand. You would not have the luxury of credit cards, debt, loans, mortgages, anything that was financed.
So let’s say you made $100,000 a year, do you understand why so many of your neighbors cannot find a good job, can’t start a business, find affordable insurance, or pay rent because they have been under-taxed their entire lives and now are under-insured. Many in your generation are shutting down their businesses because they cannot make it work financially.
For your generation, it is the scariest concept ever because you won’t see it coming and it won’t be affordable for those who are already working hard just to pay the bills. It’s time to ask ourselves what this all means and make sure we are prepared for the tax cuts, but not the lifestyle changes that will come with them.