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By Gabriel Adams
Everybody in the United States is asking this same question about why taxes are so high and what can be done to reduce them. From the grocer on the corner to the parents trying to provide for their family’s needs, consumers are very concerned about inflation and debt. Even very well-educated economists are shaking their heads lately, trying to figure out how to get the balance back into the United States economy.
Federal taxes in the United States are administered by the Department of Treasury, through the Internal Revenue Service. Besides the individual income tax, Social Security tax, and Medicare tax, there are many other forms of taxes. There are state and local taxes that are taken out of the citizens’ paychecks. Besides these taxes, there are taxes on products and taxes on services that are provided as well as many other types of taxes.
When government spending is higher, taxes increase to help cover those expenses. The taxation system in the United States is very complicated and is confusing, even to many of the country’s economists.
In addition to excessive spending by the U.S. government, the economy is also affected by the irresponsible spending of the consumers of the country. One activity that has had a profound effect on the imbalance in the U.S. economy is the irresponsible use of credit cards. Since use of credit cards has become an everyday thing, people in the U.S. have been spending more and more above their means.
Unfortunately, it has now become common place for people to use their credit cards for anything from purchasing gasoline and groceries to major home furnishings, home repairs and even car repairs.
Eventually, this becomes totally out of control and a person finds themselves deeply in debt to credit card companies. It is a vicious cycle that is creating panic among millions of U.S. citizens.
Credit card spending has led the American people into delusional thinking that they are more prosperous than they really are. They have also been hypnotized into believing that they could afford mortgages on homes that are above their means. Unfortunately, the mortgage business is largely to blame, by making it too easy to ‘qualify.’
Recently, it has become very obvious that spending has been out of control in the U.S. for a long time. People’s homes are being foreclosed and millions are being forced into bankruptcy.
In the big picture, it has also become obvious that the government has been overspending and is in debt so high that even government experts are stunned.
Huge amounts of money have been spent over the last few years related to the current war in the Middle East. All of this expense has trickled down into the everyday lives of the citizens of the United States.
Taxes are higher. Everything has increased shockingly, from the price of gasoline to costs at the grocery stores. Inflation has hit an all-time high.
Now, interest rates are dropping, tax breaks are being proposed to help the average consumer, and the government is calling for a moratorium on home foreclosures. Many financial analysts say that the United States in already in a recession while other experts warn that the country is on the verge of going into recession.
An amazing number of large companies are moving their companies out of the United States claiming that the reason for this decision is because of the high taxes in this country. Other countries are offering lower taxes and financial incentives. Obviously, this leaves thousands more U.S. workers without jobs.
Experts in the field of finance are saying that both government and consumer spending must be reduced. When people refuse to buy products, companies will be forced to lower their prices. However, with the higher cost of gasoline, stores have to charge more to compensate for that additional expense. Taxes need to be cut, but that will be impossible as long as the U.S. continues to be funding a war.
At this point, the vicious cycle continues. It will take groups of experts in the field of economics to resolve this situation in the United States – and it certainly won’t be fixed overnight.
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Source: isnare.com
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