Republicans, especially the Tea Party, are focused on cutting your taxes. When President Barack Obama began his presidency in January of 2009, the nation and world were on the brink of another great depression. In their wisdom, the White House and Congress decided to increase our national debt instead of taxing us to pay for the bailouts. First, I'm not concerned about this scary national debt. Read my Huffington Post article on this subject.
I am, though, concerned about the taxes we pay, for like Warren Buffett, I don't think we are paying enough. DO YOU REALIZE AMERICANS ARE PAYING AT THE LOWEST RATE (AS A % OF OUR GROSS NATIONAL PRODUCT) SINCE 1951?
Here are some facts about the taxes you pay:
Historically, the taxes we now pay, as a % of GDP, are the lowest in 60 years:
Further, compared to major economies, Americans pay a lot less in taxes:
One disquieting development, though, is the income share of the top 1%:
Note that the last time this figure neared 25% was just before the stock market crash of 1929. The rich might have too much money and are taking high risks.
So what is the simple solution? As long as we can keep interest rates low, don't fret the debt problem. The Chinese, or anyone, can't just take their money out, for they are investing in America for periods up to ten years. When the interest rate does go up, we use the low percentage loan we are paying them (around 3%) and become a lending nation. Let the Bush tax cuts expire in 2013 and reduce the debt over time. America is in great shape!
The Dow Jones Industrials slipped 21 to 12,633, while world markets were mostly up. Gold increased $4/toz to $1736, while the WTI crude is at $98/barrel and Brent Spot at $111/barrel.
I had dinner on my roof with this sunset: