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Monday, August 08, 2011

Brazil and the USA--Barack Obama and Dilma Rouseff

Dear President Obama,
And to President Dilma Rousseff,

I hate to say this but both you two Presidents have a problem that only increased taxation will solve.And the German PM ain't gonna tell you that. Firstly in Brazil they have two problems to deal with; one is inflation and the second is an over valued currency. By implementing a consumer tax on all goods and services sold you will fight inflation by removing money from the economy and this will not increase the value of your currency like interest rates increases would. So increased taxes solves both problems

In the USA they must increase taxes but the Republicans will stop any increase in income taxes as so they should. But consumer purchase taxes are a different animal. If the rich want to buy a $100,000 car then they are paying tax at 12% on that purchase. The lower income people can buy a nice car for 20,000 with less tax payable at 12%. Lets faceit, my dear American friends,  government revenues must go up. You can not saddle your grand kids with paying for the costs of your life style and your wars. The next Afghanistan (likely Pakistan) can be solved with one bomb much cheaper