Monday, December 03, 2012

Two Ways to Increase Revenue

by Bryan Baumgart

December 3, 2012

I’ve always hated the phrase, “increasing revenue”. From a business perspective, increasing revenue is a good thing. From a governmental perspective, “increasing revenue” usually means “increasing taxe rates”, which to the American taxpayers is NEVER a good thing. I will always call it what it is…”increased taxes”.

There is another way to “increase revenue”; however, without increasing tax rates. It involves creating wealth in the private sector which increases the pool of taxpayers. THIS is the type of increased revenue we should be pursuing.

Spending cuts (and tax rate increases) won’t begin to solve the problem. Spending cuts only involve cuts in the amount of increase in spending planned, not actual spending cuts. And asking more from the wealthy is only a drop in the bucket, it get’s us nowhere.

As Warren Buffett admitted, the plan to ask more from the wealthy is nothing more than a morale boost to the poor (aka: a big screw you to the wealthy). This meaningless class warfare gets us nowhere. If we don’t pursue policies of increasing revenue through wealth creation (including slashing corporate and income tax rates) and deregulation…we will never get out from behind the eight-ball.

If the only bill that will be on the table in these "fiscal cliff" talks, is a bill that involves “increased revenue” through increased taxes rates, then I don’t think the Republicans should have any part of it. We currently have guaranteed cuts in spending (through sequestration) coming already. Let the democrats own the tax rate increases just as they own obamacare (which is equating to large middle-class tax increases, premium increases, job loss, price inflation, along with the diminishing of the quality of healthcare in this country).

If Republicans cave and become complicit in these tax increases, the dems will surely (and I hope they do) use those votes against the Republicans when they run for re-election. I will too!!!

We got ourselves into a huge mess here, and just as I would be forced to make some painful sacrifices to get out from under huge credit card debt I wa responsible for running up…Americans will have to make some painful sacrifices to get out of this debt we ran up. We lived beyond our means and now it is time to pay the price. Everyone is pointing to everyone else to make those sacrifices.

“Ask more from the wealthy”

“I don’t want to lose my entitlements”

Bottom line…we are all in this together (both Republicans and Democrats ran up the debt this past decade) and it will take sacrifice from ALL of us to get out!!! EVERYTHING has to be on the table. Defense, entitlements, and even Obamacare (a massive espense). And we need to increase revenue by seeking wealth creation in our private sector.

No comments: