
.
.
The above chart (FROM Captain Capitalism, SEE: http://captaincapitalism.blogspot.com/2007/09/household-debt-as-percent-of-gdp.html) shows household debt as a percentage of GDP.
Back in 1953 it stood at about 25% of GDP, TODAY it stands at 97% because so many people insist on spending more than they earn (net or take-home).
Experience shows that higher income taxes don’t impact (1) the truly wealthy as the "truly wealthy" are those who DON’T depend upon income as the primary source of their wealth, (2) the higher income earners (those earning over $200K/year) can and DO defer MORE of their income as tax rates rise and (3) those who work in the underground (“off-the-books”) economy, but it’s even worse than that!
The debt burden of the average, working American (including home mortgage and property taxes) are so high that any rise in the rate of taxes will significantly raise the level of foreclosures and personal bankruptcies.
As Newt Gingrich has observed, “While critics both Democrat and Republican have assailed the current Republican administration for both over-spending and expanding government, and yet the Democrat’s antidote is even higher taxes and larger, more intrusive government.
What we have right now is a Party of “Big Government” against a Party of “Even Bigger Government!”
Yeah, that’s the problem alright, neither Party represents the will of the majority of working people who want lower taxes and SMALLER, more limited government.
H/T Captain Capitalism
See: http://captaincapitalism.blogspot.com/