MILLBORO, VA, January 04, 2013 /24-7PressRelease/ -- There are a lot of debates in Washington, DC about how to get our fiscal crisis under control. Democrats propose raising taxes as a solution to this problem.
However, many economists believe that raising taxes during a time of high unemployment and in a bad economy can hurt our country. According to the accounting firm Ernst & Young, Obama's tax increase on business owners would not spur any job growth but instead kill 710,000 jobs.
"There is ample proof that the Democratic approach to eliminating debt by raising taxes can ruin any chance of a healthy economic recovery," says P. Matthew Cauley, author of the new book "Unwrecking America: Solving Our Paralyzing Problems Through Grassroots Statesmanship." "We cannot afford to borrow forty cents of every dollar we spend. We could easily become another Spain or Greece and face strikes, riots, massive unemployment, and total economic ruin."
In his book Mr. Cauley examines the current cultural, social, and political climate in the US. He explains why overpopulation, food shortages, energy crises, and American's increasing dependence on the federal government all threaten to destroy our waning empire--and what needs to be done to save the country.
"Wall Street Journal" economist Alan Reynolds analyzed American tax rates over the last six decades and found out that in many cases higher taxes bring lower revenues, and lower taxes bring higher revenues.
"I believe our fiscal problems can be partially solved if we become more conservative with our spending and reduce the size of our bloated government," says Mr. Cauley.
Here are Mr. Cauley's reasons why not to raise taxes:
* Raising taxes at this time is bad for the poorly-performing, recovering economy.
* Economists have shown tax increases can slow economic growth in the long term.
* Investments go down when taxes go up.
* Consumer spending drops when the government takes more from taxpayers.
* Increased taxes burden small businesses that are already squeezed by tight budgets.
* Raising taxes just bloats the government and will not eliminate national debt.
* Contrary to some claims, there is no empirical evidence that raising taxes creates private-sector jobs.
"Tax reform is vital and crucial for America, but to think we can solve all our financial problems simply by raising taxes is wrong," says Mr. Cauley. "We are not in this mess because we didn't tax enough. It is time to change the situation, not exacerbate it. Ronald Reagan actually increased tax revenues by lowering tax rates which increased the velocity of money in the private sector. History has shown that no country has ever taxed and consumed its way to prosperity. Manufacturing is the key to job and economic growth."
P. Matthew Cauley has farmed and worked for the US Department of Agriculture and in international agriculture for many years. He's been a member of local organizations such as the Augusta Regional Chamber of Commerce and the Bath County Republican Committee, and been president of
Singing Earth Produce, Inc. and Alternative Investment Strategies of Virginia, LLC. Currently he lives in rural Virginia with his wife, Linda.
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