LOW INTEREST RATES ARE REALLY A TAX
All we hear about now is the national debt and what it is going to take for Republicans and Obama to come to an agreement so they can raise the debt ceiling. The biggest point of contention is whether to raise taxes on the “rich” and whether that will be part of any agreement. Republicans say “no” to raising taxes, especially now when it will hurt any chance of a jobs recovery. Democrats always think it is the right time to raise taxes so their desire to raise more money with higher taxes is nothing new from them.
One thing no one ever mentions is that low interest rates are REALLY A TAX on people who have money! Take my Dad for instance: he used to be able to supplement his Social Security check by the 5% or so interest he earned from his Treasury bills and certificates of deposit investments. What does he get now? Next to nothing with interest rates so low.
Where he once had a retirement income of around $30,000 (including his social security checks), he now has an income of about $15,000 (including SS). That’s is a 50% decline in income just taken away from him in the form of lower interest rates.
Politicians always want to tax the rich and I’m sure there are a lot of definitions about what qualifies a person as “rich”. With so many people without work these days, a rich person could be considered anyone with a job! But my Dad most certainly isn’t rich and he worries all the time whether he has enough money to make it to the end of his life, especially now that he is making almost nothing with the money he does have.
Without a doubt, low interest rates like we have now hurt anyone who is not in debt and has savings. Low rates are a tax on the rich and a whole lot of other people who aren’t rich too. We certainly don’t need any more taxes on top of that!
