Guest post by Michael Rozbruch:
What is the best way to deal with the current economic situation? My answer is simple: Let the chips fall where they may. No more bailouts or stimulus programs. No more printing money (QE I and QE 2..soon to be QE III) to pay the interest on the nearly 17 trillion in debt (by 2013).
This may not be the answer that readers are expecting, but by throwing more money at the problem, we are delaying the inevitable problem….the country is bankrupt…Washington needs to admit this and then the healing can start. It needs to reorganize.
We should have let the chips fall back when things got bad in 2008 – no matter what, the current economic situation is going to get ugly. Had we left the situation alone and did nothing, we would have been on the other side of it by now. Instead we haven’t seen the worse yet. It wouldn’t have been pretty but it is warranted. My advice to Washington is:
● Stop band-aiding the problem by throwing money at it, we’re putting off the inevitable.
● Disallowing mortgage interest and property tax deductions will not help – doing that will create more foreclosures.
● Letting the Bush Tax Cuts expire would be another solution, letting that expire can yield a huge lift in 2013.
● And lastly, we probably need to raise taxes for the very wealthy, people with over $5 million in adjusted gross income.
We need to be realistic about the current economic situation. There are logical reasons why companies can’t get funding and people aren’t qualifying for mortgages like they used to. We need to face the facts, let the underlying mess rear it’s ugly head and get past it.
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Michael Rozbruch is a recognized tax expert and the Founder and CEO of Tax Resolution Services, Co. To learn more visit, www.taxresolution.com
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This guest post was submitted in response to my query about how the best way to deal with the current economic situation. This post does not necessarily reflect my thoughts and feelings.
Your comments and reactions are, of course, appreciated. Just play nice. I have standards. And I don’t want to have to delete you.
