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2010 - The Most Expensive Year On Record?

Inflation. The US Treasury just printed a bunch of money that wasn't in the economy one year ago. You are already seeing some inflationary prices in gasoline (pegged to the US dollar), groceries, and various other items. How do you control inflation? The Federal Reserve will have to raise interest rates. If you think the credit market is tight right now, just wait and see what happens if they bump up those rates. That's what happens when you try to control the economy using monetary policies instead of using fiscal policies (lower taxes, less spending).

Income taxes. First, that tax "cut" that Obama gave us - a whole $13 per week - is in reality a tax rebate, so pay attention when April comes around, because you'll have to pay your money back to the government. Same thing happened tax day 2009 when you had to repay that $600 or $300 you got from the government from the year before. Oh, and don't forget about that Cash For Clunkers rebate and new home rebate. You'll have to pay those back also. Finally, the Bush tax cuts implemented in 2001 are also due to expire in 2010. Again, Congress could stop this but they won't. People, the media, Congress, and President Obama are too busy discussing health care to bother with this tidbit. Most likely, the media, Congress, and President Obama are well aware of this problem but are all in favor of increasing taxes without having to take the political heat by actually voting for tax increases.

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Health Care Reform. Between taxes on "Cadillac" plans and Pelosi's Value Added Tax, we will all be paying more taxes in 2010, even if Bush's cuts we're to be extended. Also, there's the penalties that you will incur if you decide not to buy health insurance. Don't forget that "fat tax" in there also. Weigh too much? Most likely you'll pay a penalty. Smoke? Penalty. Buy a Pepsi or Coke? Pay a tax when you buy it. Like Doritos or cookies? You'll pay a tax on that also.

Cap and Tax (Trade). It's amazing and a shame how liberals and Democrats don't believe in the "trickle down" effects of their actions. If you tax businesses on how much they pollute, then that will be passed down to you and I. Inflation from monetary policies aside, prices for goods will go up because of this monstrosity of government environmental regulation. Furthermore, there will also be penalties for you and I if we too pollute too much or we don't switch to those stupid mercury filled, Chinese made curly Q light bulbs or take other steps to "green" our homes. All this without mentioning these regulation will place our businesses at an even further disadvantage against foreign companies.

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Posted in Law Post Date 03/18/2015


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