America has chosen its path. It will likely choose to continue to run massive deficits, and to increase taxes on earnings, on capital gains, on inheritances, on muni-bonds, and on any other income stream it can find. A tax beyond the capital gains tax will even be imposed on the sale of your home or other real estate. The ObamaCare tax will also soon kick in. Payroll taxes may increase again. Social Security and Medicare taxes will likely increase as well. Property tax seems to be going up everywhere too. Meanwhile, even while taxes escalate, benefits for those who actually pay these taxes will decrease (such as huge cuts in Medicare spending and planned rationing). They will be means tested. Never mind that you paid for something; you should not expect to receive that which you paid for if you are defined as ??????too rich??????. Covetousness will have its harvest.
America has seemingly become “the makers vs the takers”. As those hoping to profit from these increased taxes lick their lips and rub their hands together salivating over the plunder they hope they are to receive (such as a new Obama phone). They will get some not so pleasant surprises.
As taxes and tax rates increase to pay for past and present loot to pay off the 47% who pay no taxes but receive benefits, and the government workers who vote themselves more income and benefits, and all others who live on the gubmint tit, there are other, unexpected consequences to deal with.
Here are just a few of those consequences.
1) Many employers are laying people off as they see their taxes increase. The money has to come from somewhere to pay for the new taxes. This will increase the ranks of the unemployed, dependents of government. It????????s a nasty, vicious cycle of continuing private sector job destruction they are creating.
2) Health Insurance companies will go out of business as ObamaCare is fully implemented. This will cause job loss. Furthermore, we????????ll get a third rate, single payer, healthcare system as they have in other socialist countries. This will become permanent. The best and the brightest will leave healthcare. Those who like to defraud government will be drawn to healthcare. Just as government screwed up Social Security and Medicare, they will screw up ObamaCare. In our life times we will never see quality, steadily improving, private enterprise medicine again. When the profit is gone, the machine stops working well. Many of the finest doctors, nurses, and hospital administrators and staffers are already fed up with the government intervention we already have in healthcare. We already have a shortage of healthcare workers, but many of these people will retire early rather than live with ObamaCare.
3) Many older employers will give up and close their businesses. They are already saying to themselves, ??????Why am I working so hard and taking so much risk if there is no reward for me??????? Time to close up shop and retire.
4) Some people who live in high tax states will move to states with lower taxes. This can cause a problem for states with high tax rates. The Congress is already considering eliminating federal deductions for property tax and state income tax. Property owners will look for lower tax states.
5) As the interest deduction disappears (one of the ??????loopholes??????) this will further destroy the real estate market. Fewer people will be able to afford homes. People will sell at discounted prices, forcing the market lower. Many will decide to live in an apartment or rental. There will be huge dislocations in the residential real estate market. Rental demand will escalate forcing prices up and making it more difficult for poor tenants. More government subsidies will be required. The vicious cycle will be reinforced.
6) As government continues to run deficits, raise tax rates, and destroy business, actual tax receipts may fall. These things taken together may result in further credit rating reductions for the U.S. government. Eventually this will result in higher interest rates which will further destroy the housing market (except government will likely intervene by making loans to people with no credit worthiness as they did in the last bubble). Will they create another real estate bubble? They????????ll likely try. Already easy money policy by the world????????s central banks is creating this new bubble: http://www.cnbc.com/id/49740329.
7) Inflation will kick in as deficits continue to be financed by printing more and more Federal Reserve notes, destroying the value of the ??????dollar??????. During this Thanksgiving season it????????s already been reported that in the last ten years the cost of a turkey dinner is up 41%. This trend will escalate at an alarming rate. http://www.bbb.org/us/post/thanksgiving-dinner-prices-on-the-rise-8228 Couple inflation with job loss and you’ll have Jimmy Carter Stagflation. The younger generation is too young to remember 20% inflation coupled with 20% interest rates coupled with escalating job losses such as in the Carter years.
8) Taxpayers will cut discretionary spending. A friend of mine told me that his tax bill is expected to go up by $50,000 next year. He is cutting all discretionary spending in his personal budget and in his company. Things like tickets to professional ball games are going away. His company can no longer afford such things. He will be laying off some employees and reducing others to part time status to make up for the new tax costs. Multiply his decisions by hundreds of thousands of small business owners and you can see a ripple effect going out into the economy. It will be tough. Another friends said, ??????I won????????t spend a dime over the next four years. I????????m going to hunker down.?????? As taxpayers cut back on spending it will destroy the private economy further resulting in additional private sector job destruction. It????????s a bit of a vicious cycle isn????????t it?
9) As taxes go up, funds available for charities shrink. This will, of course, create more demand on governments who seem to want to take over what has, in our once free nation, been the work of charities. There????????s that vicious cycle again.
10) If taxes go up on everything where does the money come from to buy houses, food, cars, clothes, education, etc? People will turn to government for these things. When government takes more and more of the income, fewer and fewer people can afford to survive without government aid. The dependent class will grow, and the self-reliant class will shrink. This appears to be what government wants.
11) Government will raise the debt ceiling again. This will further destroy our wealth and our credit rating. It can destroy the status of the dollar as a reserve currency; destroying our currency makes us all poorer. You don????????t get out of debt by borrowing ever more money. See: http://www.breitbart.com/Big-Government/2012/11/09/Harry-Reid-We-ll-Raise-Debt-Ceiling-By-2-4-Trillion
12) Many people will decide to stop working as hard as they have to provide jobs. If there is no reward for building a company and employing people, they will stop building companies. If they are vilified for making more money, and it????????s all taxed away anyway, then why will they work harder to make more? It????????s a vicious cycle this path we are on; it????????s national economic suicide. It????????s already been tried in every failed Marxist and Fascist economy of the past. Too bad we have forgotten to study true history and real economics. Listen to Thomas Peterffy:
13) Our Military may lose its motivation. Its soldiers have fought against socialism, fascism, and Communism for decades. If we are now embracing these isms at home, then there is no longer any freedom to defend. This is a confusing situation for our military personnel.
14) As our country is destroyed economically and militarily through endless U.N. wars and escalating cuts in its military budgets it will be folded into a regional government and then into a United Nations New World socialist, tyrannical government that has stated time and again its desire to redistribute the wealth of America to the poorer nations of the world. That government is already working to disarm the citizens of the world so there can be no resistance to its iron will. It will be the bloodiest dictatorship of all time.
15) Businesses will have to raise prices to offset increasing taxes and the massive monetary inflation that is spiraling out of control. See: http://www.kitco.com/ind/Hamilton/20121109.html
16) Will Americans simply sit by and watch their once free republic ignore the Constitution and devolve into a European socialist democracy? Or will there be unexpected consequences as the progressives and their minions seek to force this down the throats of freedom loving Americans?
These are just a few of the tens of thousands of unintended consequences that are about to spew forth as we further embrace socialism and the escalating debts required to pay for the very temporary, false utopia it creates. Don????????t believe the lie; there is no free lunch. Socialism is theft. It leads to terrible consequences. It will make the rich poorer and the poor will be made poorer too.
See also: www.campaignforliberty.com and www.jbs.org and http://www.ntu.org/ See also: https://www.area-info.net/articles/show.php?cty=Providence&st=Utah&article_id=1825