by Caveat

Created on: September 11, 2010   Last Updated: September 12, 2010

The real problem with the USA tax system is that insufficient Federal and State income is derived from taxes. The very wealthy are competent at tax avoidance with the help of tax lawyers. As we all know the very wealthy create off-shore tax shelters for new and non-existent family members. This causes suffering in their own nation. Compared to other nations, USA city infrastructures are often rundown and dilapidated relying on stores and other businesses to create a framework for the downtown core. Crossing from Canada to the USA is a clear demonstration of the failure of the USA tax system.

While no-one is advocating that the USA copy Canada in becoming the world's highest tax society, very real global criticism have been levied against the USA's tax system. At the time of the last great global credit crunch caused by the toxic paper aka sub-prime mortgages, leading statesmen pointed out that a fair and reasonable method of taxation would have prevented the buffoonery of producing sub-prime mortgages. Many are investigating the heads of banks such as Stearn's and Lehman's, while forgetting that it was USA fiscal policy that permitted these persons to lead their banks into bankruptcy.

The same can be said of Iceland, and the British Northern Rock that fell to the failures of German mortgages. Astonishingly no-one stated the obvious that any schoolchild knows. You cannot borrow money at less than cost, or buy any goods at less than cost without causing collapse of the seller. In the above cases the sellers were banks including the Bank of America.

Ironically German Chancellor Angela Merkal wanted sanctions against the USA at the Climate Summit meeting held in Germany. President Bush had remained in his room rather than participate. That year Japan had refused further lending to the USA, but China supplied the necessary funds. President Bush had to know the fragile nature of his nations economy when he screamed, "No", no to Chancellor Merger's call for sanctions against the USA.

Like so many fiscal failures within the USA, from the time of the Great Depression onwards, the world has been subjected to fiscal agony by the USA. Raise your taxes and pay your way USA because your debt to China is immense. China is reputed to be undervaluing its currency. Should China revalue, the USA may find that it has become a satellite or colony of a greater and more powerful economy in Asia. Many Chinese are waiting to become the worlds global leader.

The challenge USA is to face your situation and quit the subsidies, whether oil or other national handouts. Do like others and pave the way back to financial security for rich and poor alike within your nation.

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