TURTH ABOUT TAXATION - middle class...

If you ever wanted the truth about increased taxation in a nutshell here it is. And the only reason I mention this on our blog is that some of you who read my random thoughts are small business owners and middle/upper-middle class Americans. Some of you may have venture capital, some may have a wealthy Angel investor...whatever the case, if I can provide you with some common sense information that helps you position your business for the upcoming year I'm more than happy to do so:

Something to think about ... higher rates inevitably pressure wealthy taxpayers to withdraw captial from taxable, productive business and instead invest in tax exempt securities (such as municipal bonds or overseas) - the end result is that the wealthiest segment of the tax base begins to dry up as their money is diverted into tax-free channels that neither benefit the overall business landscape (creation of jobs) or the government (taxes). This ultimately leads to the squeeze on the only target left for the government to pursue...the middle class.

Now, I'm sure that you'll realize that the relevance of this message is as sound today as it has been in the past. It's just common sense... Higher taxes will lead to less money to go around for small business. I don't say this to scare anyone, but just to make you aware of the very simple, yet effective mechanism that is being put into play.

Best Always,
Dave J.