Not everyone interprets tax cuts the same way, but at some point politics should be left out of the equation and reality should be embraced. The country has bills to pay, and the way those bills are paid for is through collecting taxes.
Assuming that taxes are used as they are intended, things get paid for. Bush’s tax plan adds $6.8 trillion dollars to the national debt, and the only ones who will benefit are high-income households. There’s an assumption by some, that by cutting taxes, there will be more disposable income and that people will spend more, not less.
That’s never worked, and there is no reason to believe that it will ever work. The truth is people spend more when they earn more. It’s these earning that can produce an even greater tax base. The key, one would think, is the correct taxation followed by the correct application of those taxes. It shouldn’t take rocket science to get it right. However, that point will be argued endlessly as politics as usual plays out. As an individual, your first line of defense is to stay up on tax codes and changing laws.
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Law Offices of Darrin T. Mish, P.A.: Tax Attorney