Taxes have remained a controversial issue that has refused to go away. The latest push by the new administration is evidence of the undercurrents that have plagued the subject since the days of the founding fathers. Experts such as Ted Bauman believe the obsession with taxation is highly misplaced in the country. In fact, debt and taxes remain some of the most significant threats to your wealth today. Why are so many people so fired up about taxes and not credit?
First, they directly reduce your disposable earnings. Secondly, the majority of people believe they pay too much in aggregate taxes. That’s as far as tax debate comes. Away from the tax smokescreen, the next biggest drain on American incomes are the credit markets. It’s like a big invisible vampire that is sucking the blood out of working and middle-class families. Popular culture has mostly driven this.
People are used to getting things they cannot afford now, just by demonstrating that they can pay. The strategy creates a debt-based economy and inflates the prices of essential services such as housing and education. This cuts across the board in all sectors including healthcare, housing, and education among others. Credit has also become readily available creating an endless loop.
The impact of inequality is devastating. The wealthiest fund the borrowing by the middle-class. Their investments are high-yielding and guaranteed to keep the borrowers in debt for extended periods. The arising inflation is further compounded by the capital injections from the top and reflect as higher interest rates that the borrowers have to repay to the already rich class at the top.
More debt leads to more borrowing, which leads to inflation in the markets, more borrowing, and lending. Financial specialists such as Ted Bauman believe the solution to these endless cycles lie in reducing the debt burden on middle-class Americans. Ted Bauman works as the Editorial Director of Banyan Hill Publishing. He joined the financial publisher in 2013. He oversees several journals including The Bauman Letter and Alpha Stock Alert among others.
He obtained an economics degree from the University of Cape Town in South Africa and has extensive executive experience in the financial sector in the country. Later on, he served as a consultant handling research and analysis in sectors such as housing for a diverse range of high-ranking clients including stage agencies.
He returned to the US at the height of the financial crisis in 2008 and has since focused on market research. He is an active proponent of the diversification of assets to ensure safety and profitability. He contributes to multiple free and international journals such as The Sovereign Investor Daily, Journal of Microfinance and Cape Times among others.