For the last 38 years since Ronald Reagan was elected, I have always thought it strange when people talk about cutting funding.
At its core, the worst way to cut funding is to reduce disposable income of working families and our nation’s consumers.
Using Math 101 basics, if you raise sales tax, state tax, or federal taxes on income, you have cut funding and killed job benefits to all working moms and dads.
Using Economics 101, if you reduce deductions or exemptions or expensing for families, you have cut or killed funding for small business and working families.
So, for the U.S. to remain competitive globally, workers and families must not have their benefits and funding cut by raising any taxes. Everyone who goes to Wal-Mart or Amazon knows that they shop there to save money. In a competitive world, money, capital and people go to where they can save money. Further, the nation with the most efficient system has the best revenues and the most investment.
Therefore, by raising sales taxes (state or federal tax), state and federal politicians will cut funding to the middle class for basics such as health care, diapers, food, phones, internet, gasoline, family planning or birth control, heating oil etc.
Every time politicians raise taxes, they also are killing job benefits. The worst part is that “progressive taxes” reduce the pay checks to all recipients of income. Increasing income taxes or sales taxes has the immediate effect of cutting benefits and funding to: children, the disabled, our veterans, and to all Social Security recipients.
As for reducing debt and government expenses, the simplest ways to reduce debt are by creating jobs and reducing interest rates. If the Federal Reserve raises rates, then all taxpayers will pay higher interest on the $10 trillion of new debt that Barack Obama created. If President Donald Trump creates one new job, there is a possibility that 2-3 people will be removed from public assistance, which reduces the government expenses, lowers the budget and lowers the debt.
George Mentz JD MBA CWM Chartered Wealth Manager ® is a licensed attorney and CEO of GAFM ® global education, which is an ISO 29990 Certified professional development company operating in over 50 nations. Mentz is an award winning author and advisory board member to several companies around the world in education, charities, and crypto currency.
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