Although it doesn't seem THAT long ago sit back, feet up, and REMEMBER the 'good ole days' of federal taxation in 2007! Would anyone have envisioned such a drastic difference? In 2007 fiscal responsibility was about $10 trillion closer to budget neutral. Although then President George W. Bush promised to 'cut taxes' things slowly spiraled out of control. He faced the funding of a war that lasted longer AFTER victory was declared, than before...and continues to date, as well as natural disasters, such as Hurricane Katrina that 'tugged hard' on the purse strings of America. Also in 2007 another 'killer' for lower taxes snuck in without being noticed...higher gasoline prices that just kept rising threw another 'curve ball' to the economy. Facing these challenges, and the need to support the growing 'war on terror' made a hike in federal taxation for 2007 look like a quick answer to problems that seem to come from every direction without warning.
Pres. Bush faced a now democratically controlled senate that pushed for at least some higher taxes. However he did CUT gift and estate taxes eliminating the need to pay unless an estate valued at over $3.5 million verses the former requirement of $2 million. However, economist worried that this move might adversely affect small business and the economy in general by negatively affecting the 'thinking' of individuals who could decide to 'hoard' their wealth rather than spend it.
2007 and its great challenges, marked the beginning of sky-rocketing taxes and today's $12 trillion deficit...and counting.
America came to a 'crossroad' in 2007. The loss of American industry due to N.A.F.T.A. (North American Free Trade Agreement) began to actually be FELT and SEEN by the administration...something that was AGAIN, unforeseen. Fewer businesses meant fewer jobs and fewer people to pay taxes. All the more reason to raise taxes on the people and businesses that still DID pay.
Suddenly, a new 'train of thought' began. The nation's troubles brought George Bush down to extremely low popularity levels and a democratic congress began to 'morph' into a progressive movement toward more government control, higher taxes to fund it, and a utopian type of thinking that more and bigger government, along with higher taxes, was the ANSWER to all woes!
With so many things in chaos, the 'powers that be' began the trek to maximize the control and power of government to help control our OUT of control economy.
Did federal taxation year 2007 begin a new and better segment of American history...or did it mark the beginning of the end? The whole story is yet to be written.