As you know, I am absolutely against an increase in tax rates. As a tax practitioner, I know exactly what happened when taxes increased back in the 1980’s. I have personal examples where individuals have not started new projects or grown their business simply because the risk reward was not worth it.
Why risk twenty to fifty thousand dollars to hundreds of thousands of dollars just to have your profits be taxed at a 70% or higher rate. The 70% takes into consideration federal income tax, state income tax and payroll taxes along with, in some cases, city taxes.
This video on Utube from Cato Institute lists the five reasons that we should be opposed to higher taxes. It’s eight minutes long but in my opinion it summarizes well the whole tax increase policy.
Click on the link to view: http://www.youtube.com/watch?v=XeXPibDuy6M&feature=player_embedded
