As we slowly plod towards the November elections the country will be truly voting on the direction for our economic future. The country faces increasing deficits, underfunded pensions and a bloated bureaucracy. As well as a tax system that is financed by only half of the population.
Since 2008 people have been shedding debt either through a payment of debt through a personal austerity plan, or by bankruptcy, foreclosure and other debt forgiveness. If only our government would plan to do something similar at some point.
The Democrats are looking at the top 3% to pay more in taxes, there are those who state that they should pay more in taxes but jut never seem to cut the check (i.e. Buffet should just write the check and be done with it). But my concern is the bottom section of the tax filers. Not tax payers just the filers. The percentages keep changing but the number of tax filers who pay no income taxes what so ever is between 42% and 47%. This is a truly scary thought.
With almost half of the population paying no income taxes, they are going to be voting for their continued free ride. The upper levels have the discretion to limit or postpone their income based upon the tax rates. So if the upper limits make these adjustments there will be less taxes collected overall. We have a progressive tax system, but the system may need to be tweaked at both ends.