It's The Taxes.

This is an old and tiresome discussion topic however it never seems to be removed from conversation. I have been following the tax topics closely throughout this presidential debate and honestly, I’m not sure what to think at this point. At the beginning of 2013, the Bush tax cuts are scheduled to expire. The Obama care law is set to raise tax rates on the wealthy by an additional 3.8 percent. Obama and others in Congress argue that these higher tax rates are justifiable because of the growing argument that the wealthy don’t pay their fair share of taxes. Unless something is done to spread the burden more equitably, the argument is, society will become more unfair and the economy more unsustainable with each passing year. So what really needs to take place is to become fairer. The tax code needs to tax the rich more heavily while maintaining a healthy and steady trend with the middle class and poor that are fair and sustainable. One of Obama’s latest budget proposals raises 1.7 trillion in taxes over the next decade by increasing tax rates for the wealthiest Americans as well as for the middle class. The result of this would be much of those people’s wealth, which might otherwise go toward creating jobs, would end up sitting in unproductive tax shelters. I say for this reason, simply creating high tax rates are the worst way to redistribute income to the poor and the middle class. Creating fair tax codes and lowering tax rates can make the tax burden fairer. This trend started in the early 60s and continued into Bush’s presidency. This trend showed growth of tax receipts from 517 billion to 1.3 trillion. Along with fairness and this trend, creates opportunity, growth and jobs because the money freed up for consumption and investment has a multiplier effect. In closing, taxing high-income individuals can and has increased equality, but there is little evidence to suggest that this is the sole solution that will result in increased economic stability for the poor and middle class. Taxes distributed fairly and accordingly amongst all the classes will create stability and equality.