Candidate Corner: Taxes

Posted by: Gene M. | Dec 15,2007


I’m taking some liberties with calling this a Candidate Corner post.  My other Candidate Corner posts have dealt with how the candidates have dealt with the credit card issue specifically.  Today, I want to talk about something that is on every voter’s mind: taxes.  Republicans often bring out the old standby, “Tax and spend liberal,” to describe any Democratic candidate.  Democrats favor more social programs, which are costly and that money needs to come from somewhere.  

The fact is that whoever gets into office come 2009, taxes are going to have to go up.  With the rising price tag of the War in Iraq, and the War on Terror in general, there is less and less money for basic infrastructure.  We’re not talking obscure social programs, but liquid funds to keep the government and the country running.  One of the major criticisms of the current administration is that he’s spending liberally without devising a way to pay for it.  Fiscal conservatives hate that.  

But this is something that all Baby Boomers, and all retirees, need to take into account.  The economy is not at its healthiest today and is heading towards a slowdown. Sophie has already written about how you have to factor in inflation.  You need to factor in rising taxes as well.  This is not a case of: if a Democrat gets in office, my taxes are going to go up.  It’s more a case of, taxes are likely to go up, regardless.  Costs are going to be higher, so your current retirement portfolio is not going to be worth nearly as much.  

20% of every tax dollar goes to the national debt.  That percentage is likely to increase in the coming years.  So not only do you need to think about your own debt, you’ve got to think about the country’s debt as well.  The deeper in debt you are personally, the less savings you’re going to have in retirement.  With higher taxation also on the horizon, you’ve got to take the initiative and get out of debt before your final day of work.  The same goes for anyone looking to save money, not just retirees.  You cannot control how the government spends its money, but you can control your own.  

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