Do We Need More Taxes?

Last updated on February 26, 2022

Tax increases are inevitable, but an increase in taxes is not justified if there is no equivalent increase in income. American taxpayers are being burdened with more taxes because the U.S. needs to overcome its fiscal deficit.

Excessive and unintelligent spending by government can result in the waste of existing resources. Some tax revenue brought in by the U.S. will be wasted because of erroneous or out-of-date policies. The recent tax increases, with payroll taxes, but also on capital gains, hit most individual taxpayers and businesses.

If taxes are increased only for the rich, it is not only they who will be affected because in an economy no one lives in isolation. The interconnectedness of employers and employees makes it impossible to raise taxes for the rich and not affect middle and lower-income taxpayers as well.

Furthermore, increase taxes on capital gains may discourage businesses to invest and take risks. It may also hinder employment. Increased taxes are not the sole solution. Identifying of problems that lead to the fiscal cliff and resolving them will be wiser rather than simply passing the buck to taxpayers, no matter their income.

The government needs to understand their responsibility towards the country by managing their spending rather than asking taxpayers to pay more in taxes. Effective policies and a better use of existing resources might be the way forward.