Taxes: How Low (Or High) Can They Go?
I recently ran across an article on the internet entitled Taxes: How Low (Or High) Can they Go? and couldnâ€™t help but take a step back and laugh a little bit. This very simplistic take on a highly involved issue was so rudimentary that it was almost mind boggling.
In the article, the author takes a chance to make a historical stance on taxes and from that stance, pose a question about where the federal taxes might be headed. I get the premise behind the article. He was wanting to encourage people to think about the fact that, even though they might be fond of complaining about things like taxes, they were actually in a pretty enviable position when compared to past workers. The problem with this is that he was seemingly throwing out all sorts of factors when suggesting that out current rates (which are relatively low) might rise higher in the coming future.
For starters, I donâ€™t have to tell you that the American economy of today is much different than it was back in 1944. In addition to the fact that the United States isnâ€™t exactly involved in a World War at this point, itâ€™s also a much larger economy, encompassing more workers and much more productivity than previous economies. Because of that, there are more tax dollars flowing into the federal coffers. This means that Americans will never see the near 90% tax rates that people had to endure during that time.
Also worth considering is the fact that the political climate has shifted significantly since then. People can now access information from anywhere and they can find out more information about tax dollars and where they are going. With this power of knowledge, does anyone actually believe that the American people would allow a government to take almost every dollar they earn at work?
The article poses a fair question, but in my opinion, it misses the ball a bit in trying to promote logical thought. Americans will never again have to face 90% taxation or anything remotely close, as long as we arenâ€™t occupied by a foreign power.