As strange as it might be, it has come to my attention that the government has, on occasion, over promised and under delivered. Freely translated: they overestimated results and underestimated costs. It's really a rare occurrence, perhaps no more than once or twice a day that Congress is in session. The net result is we have passed the eyeballs, on the way up, in debt. My 4 month old granddaughter has been solicited for a social security card just in case the government, federal, state or local, needs to add a few more bodies to the tax rolls. With the crisis in mind; so much debt that even China is worrying about their almost trillion dollar U.S. Treasury bond position, I have decided to outline some choices for the inevitable raising of taxes.
Realistically, taxes can generally only come from individuals or family units, small businesses and the large corporations. Two missing sources we could really use that would build our tax base are coyotes and rabbits, which seem to be everywhere enjoying the environment and not paying their fair share (Writers note: the aforementioned animals were not covered in the Bush tax cuts). At a bare minimum, we could harness their power, via a treadmill, and create some green energy. Just a thought!
Let's start with the large corporations and move backward from there. The problem with our tax system is that we tend to only want to tax profits. The government(s) is really missing a huge source of revenue by sticking to that formula. If I may digress for a moment, I will tell you about my father's thinking. When I was a young man and fell and scraped a knee or some other body part, he would generally paddle me. He simply believed that if he didn't point out the fact that clumsiness had no place in a person's life, he felt he would be missing a teaching moment. With that in mind, why not tax losses of these corporations at the same rate as profits. Right now, they go out of their way to create losses to save on taxes. We simply stop that and teach them that losses are unacceptable and will be dealt with accordingly. Future losses claimed will be taxed at a rate higher than profits. That gem of an idea is worth a few billion, give or take.
Roger Schlesinger's Mortgage Minute is heard on hundreds of radio stations and daily on the Hugh Hewitt radio show and Michael Medved shows. Roger interacts with his hosts and explores the complicated financial markets in order to enlighten his listeners and direct them along their own unique road to financial freedom.