« Continue Browsing

e-mail article Print     e-mail article E-mail

Kurt Kollman, Published October 01 2010

Raising taxes not the answer

I read with interest Margaret Bitz’s letter in The Forum dated Sept. 25. She states that the GOP’s message is contradictory. But she also goes on to say the Democrats’ bill to create a $30 billion fund to lend to small business would create jobs and help the “little guy.”

This would be a shortsighted, Band-Aid approach to dealing with our economic problems. Anytime the government throws money at a problem, such as this bill or the stimulus plan, it does nothing but try to lower jobless claims in the short term, and when that money is gone, so are the jobs. This results in a higher deficit to have to deal with later, and we are back at higher unemployment that we were trying to eliminate. Plus with the current administration threatening to let the Bush tax cuts expire, there isn’t a business owner in his or her right mind who would hire new employees, expand or buy new equipment.

She also states the Republicans’ plan to cut taxes and spending only helps the “big guys.” Let’s analyze the Bush tax cuts the Republicans (and some Democrats) want to make permanent. If the Bush tax cuts expire, the lowest tax rate of 10 percent would go up to 15 percent – that’s an increase of 50 percent. The top tax rate would increase from 35 percent to 39.6 percent. That’s an increase of 13.14 percent. By any definition, you cannot argue that letting the Bush tax cuts expire helps the “little guy.”

It has been proved time and again that increasing taxes hurts everyone. Do the research: Countries such as Ireland have cut taxes and brought in more revenue; states have raised taxes expecting more revenue to be collected, when the exact opposite happened; even the famous yacht tax shut down boat businesses because the boat-buying business went somewhere the tax was not.