Benjamin Franklin wrote a famous quote that nothing is certain except death and taxes. This shows us that taxes have been on the minds of people and politicians for hundreds of years. In recent days and weeks, much of the news has been about the Republican tax bill. Lawmakers are obsessed with taxes and tax reform. However, there is something that is more important than taxes, according to Ted Bauman.
First of all, why do people care about taxes at all? The answer is that taxes drain our wallets. They take away money that we can be spending. Many middle-class Americans spend 15% or more on taxes. However, Ted explains that there is something else that is more important than taxes because it drains your wallet more than taxes do.
This thing is debt and credit. The fact is that the economy in the United States is based heavily on debt and credit. People use credit and credit cards to buy many things. Think about what the situation would be if people only paid cash to purchase things on talkmarkets.com. If that were the case, people would not purchase as many things and would look for lower-priced items, houses, cars, etc. This would cause prices to go down. In other words, debt and credit are driving up prices and taking money out of our wallets.
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This is a never-ending cycle. People are in bed so they borrow money. Once they borrow money they are in more debt. It is a big business for wealthy people. They lend people money and make money off this lending. With the extra money that they made, they lend more money. Prices continue to go up.
There are many forms of debt. Mortgages, student loans, and other loans are all forms of debt. Disposable income has gone down and the costs of those loans have gone up. More and more Americans have more debt than disposable income according to tedbaumanguru.com. In fact, in 2016, debt growth exceeded disposable income growth. The truth is that instead of focusing on taxes, lawmakers should focus on reducing debt. They should focus on stopping the never-ending vicious cycle of debt and lending and credit.
Find more about Ted Bauman: https://medium.com/@TedBauman
— Ted Bauman Guru (@Ted_B_Guru) November 20, 2017