Tax fallacies form barrier
In my mind, the single greatest barrier to solving the budgetary crisis is three-fold.
1. The majority of citizens do not believe that keeping taxes low results in a greater federal revenue. Higher rates stifle incentive to invest and will result in fewer new jobs. Presidents John Kennedy and Ronald Reagan believed in lower rates. The reason the aforementioned is not more apparent is Congress has historically spent more than was taken in.
2. Most do not believe that higher tax rates will inhibit investment that would result in more jobs. I have heard that 70 percent of jobs in America fall in the category of small business.
3. “I’m OK with raising taxes as long as you don’t raise mine.” It has been said that President Barack Obama’s plan for raising taxes on the rich would run the government for eight days. That’s like filling a water bucket one drop at a time. Until people reach an understanding that solving problems that result in the greater good for all, not just them, budget problems will get worse before they get better.