The One Thing You Never Should Do Is?

Hello,

The one thing the government should NEVER do is to raise taxes when we are in a recession or just barely crawling out of if.  Unfortunately, this is what our Congress is going to do to promote their political interests.

First will come the tax increases associated with Obama’s health care proposal. Next will be the tax increases due to the expiration of Bush’s tax cuts.  They expire at the end of 2010.  The top marginal income tax rates will increase and so will the capital gains tax.  The 900 pound gorilla tax increase will be the taxes (passed on as costs) associated with the administration’s carbon cap  and trade.  This will hit the middle class particularly hard.

If these increases materialize, then the economic upturn we have will be brief.  The economy will slide back into recession in late 2010 or early 2011.  There will be a big price to pay.

Be Solvent & Prosperous,

Sanford Kahn, Business Author/Speaker