An Advisor (and Client) Wish List for the Next President

I don’t know about you, but elections just irritate me. They’re all about manipulation of the truth and smearing the opponent’s reputation, all for the power and money that elected office can bring. But elections never change, and it’s the same issues over and over. 

Take taxes, for example. One side says more taxes are needed while the other says less is better, with both parties saying their way will lead to economic prosperity. Why is it they can’t just be logical and truthful? Plain and simple, taxes are a burden on the person paying them. If people didn’t have to pay taxes, they could logically pay down their debt, save and invest more or consume more goods and services. In my view, all families would be better off with that option rather than the contrary. Yet increasing taxes just because the government needs more revenue misses the whole point. That’s akin to me going to my boss and telling him I can’t make ends meet at home so I need a raise! How real and logical is that?

However, for some reason, our elected officials just can’t comprehend that, much less relate it to voters. The President has to be truthful with the American public. More taxes on successful families will result in less spending, investing and consuming. The truth is our government doesn’t aspire to live within a realistic budget, as do prudent Americans living within their means. One of my previous articles for AdvisorOne, “Wealth and Taxes,” illustrates that just 25% of America pays 86% of all the tax revenue, starting with those making roughly $66,000 a year in household revenue. So logically, if our government is getting most of its revenue from only 25% of the population, who do you think dictates the future growth of our country? It’s surely not the other 75% of America! 

Logic and honesty would indicate that raising taxes on anyone, especially the previously mentioned 25%, would indirectly deter growth, and here’s why. Let’s assume a family makes $100,000 and they owe $20,000 in federal taxes annually. If you raise their federal tax to $25,000 on the same income, the extra $5,000 has to come from somewhere. Therefore, the family is forced to cut its annual budget, resulting in less retirement savings or less consumption of goods in order to free up the extra $5,000. Is that really the logical way to spur the economic growth we need?

Wishes are just that: wishes! Yet wouldn’t it be refreshing for advisors and investors (and all Americans, for that matter) to finally have a president with a real desire to simplify things in government? One who has an enormous amount of common sense relative to our debt and our future, while honoring his oath to be logical and truthful at all times?

That’s what I wish for and I think most Americans would agree. However, whether we have any candidates who can actually deliver on those wishes is yet to be seen.

Either way: don’t forget to vote!