Big tax increases will strangle small business

When the economy is falling into a recession/ stagflation,  government becomes increasingly desperate for tax revenues.

This desperation comes at the worst possible time for small businesses, which suffer the same scarcity of funds.

Increased spending by the Ferderal Government in the wake of a change in  the party controlling the White House and the Congress, will spell a financial yoke that will drag down a great many small and medium businesses.

If Obama wins, he has promised billions in new spending on social welfare programs and universal health care. Where is this money going to come from ?

The State and Federal Governments are scrambling for money at this level. Add a few hundred billion in new programs, and the printing presses will be working overtime to print new money.

The inflation which this will engender , will be even more painful that the spreading recession, resulting in my recurring economic nightmare  scenario…Stagflation. The 2 ton Gorilla with the nasty attitude. 

No Responses to “Big tax increases will strangle small business”

  1. champion says:

    wow I could have been talking about today but that was written 3 years ago, not bad