Should America Be Expecting a Tax Increase in the Future?

Americans should expect some sort of tax increase within the next decade. Most of this hangs in the balance of the upcoming Presidential election. Republicans wish to lower taxes and democrats wish to increase taxes, while providing other services. In the United States, personal income and corporate tax rates are expected to fluctuate, although citizens and business owners would both prefer to see them decrease.

2016 Election Dependent

Whether or not the American people are going to see an increase in taxes is heavily dependent on who becomes the nation’s next president. If a Democrat is elected, Americans can expect to see an increase in personal income and corporate taxes, although it will be higher if Bernie Sanders is elected.

Republican candidates have plans to reduce taxes. Donald Trump plans to lower personal and corporate income taxes to flat rates hovering around 15 percent. Ted Cruz and John Kasich also have plans to lower taxes.

National Debt Reduction

An increase in taxes is said to be what the nation needs to reduce the national debt. Our nation is currently sitting at a 74 percent gross domestic product. The smallest GDP recorded since WWII was 23 percent in 1974.

Bottom Line

Closing the gap on the national debt has to come from somewhere, and the government refuses to cut frivolous spending. Taxes must be raised to make up for it. Rising taxes is not simply a matter of having a larger budget for its own sake; it is about working toward reducing national debt and stabilizing the economy over time.

Image credit: Susannah Storch