Higher taxes will result from a high national debt. The federal budget deficit will cause the national debt to rise, but the debt must be dealt with. The federal government owes money to the federal reserve and to other sources such as china. These sources expect to be paid back in full. The federal government will likely generate new taxes on the American people in attempt to increase tax revenue. As stated previously in this paper, the Affordable Care Act instituted by the Obama Admisitration was not only about health care but about creating a new tax on the American people. Since 1913 the federal government has greatly begun to tax the American population. “With the enactment of the Income Tax Law of 1913, the Federal Government began to apply …show more content…
The income tax started very low, about 1%, this was not a shock to the economy; however, the income tax continued to rise and depending on which income bracket one falls under in the federal and state tax code will determine the amount of income tax is imposed. The federal government has introduced several more taxes than the income tax since 1913. The bottom line remains that the federal government debt must be paid and taxes are how they get paid. Per theeconomiccollapseblog.com, Americans pay approximately 97 different taxes every year. Estate tax, local school tax, property tax, building permit taxes, and real estate tax to name a few are taxes on personal property divided into different categories. Some of these taxes include capital gains tax on investments made in the stock market or the sale of personal property. Employer health insurance mandate tax, employer Medicare tax, and employer Social Security tax are some of the required taxes for business to subtract from the employee paycheck to go towards funding these government benefit programs. The individual health insurance mandate tax comes from the Affordable Care