Grand Rapids, MI -- (ReleaseWire) -- 10/29/2012 -- When financial advisor Dennis Tubbergen is not busy advising his own clients, you can probably find him writing his weekly newsletter, his weekday blog, or interviewing his next guest for his radio show.
This week's guest is Jeffrey Albert Tucker, the executive editor of Laissez Faire Books. Tucker is past editorial president of the Ludwig von Mises Institute and past editor for the Institute's website, Mises.org.
Tucker is also an adjunct scholar with the Mackinac Center for Public Policy and a faculty member at Acton University
Tubbergen, who is an author, radio show host, and CEO of USA Wealth Management, LLC, spends a lot of time giving his opinions on the economy in his Moving Markets weekly newsletter at www.moving-markets.com and in his online financial blog. On
October 19, 2012, Tubbergen discussed taxes in his blog.
"During the current U.S. election cycle, every candidate for office has proposed a solution for curing our economic ills, although many of these plans are a bit sparse on details," began Tubbergen. "While I refrain from talking politics in great detail, let me give you an example from the country of Greece that shows how higher taxes don't contribute to economic growth in a down time."
Tubbergen goes on to say, "I am very much aware of the fact that in the U.S. in the 1990s, income tax rates were increased and the economy did well; however, that was an economic autumn season, a time that the economy was expanding dramatically while debt accumulated almost as dramatically. Frankly speaking, that won't work in an economic winter season."
Quoting from a Reuters' article published on October 11, 2012, the article states, "Greece's biggest company is leaving the country, drinks bottler Coca Cola Hellenic said on Thursday in announcing it will move to Switzerland and list its shares in London, dealing a blow to the debt-crippled Greek economy.
"The material impact on Greece may be limited - its Greek plants will go on working and CCH said the five percent of its business that the world's second-ranked Coke bottler has in Greece will be unaffected. But analysts quickly saw it as bad news for a nation struggling to compete inside the euro zone."
The article goes on to say that the move makes sense as the firm is seeking a "low-tax, low volatility haven for its corporate base."
Tubbergen's bottom line here?
"A word of advice to policymakers - you can only raise taxes so far in bad economic times," he concludes. "When you hit the limit, which is lower in an economic winter season, a company will say 'enough is enough' and move on."
To read the blog in its entirety go to www.dennistubbergen.com and select his October 19, 2012 entry.
Tubbergen’s syndicated radio show can be heard on metro Michigan stations WTKG 1230 AM and WOOD Newsradio1300 AM and 106.9 FM.
Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in Grand Rapids, Michigan. Tubbergen is CEO of USA Wealth Management, LLC and has an online blog that can be read at www.dennistubbergen.com. To view Tubbergen’s latest Moving Markets? newsletter, go to www.moving-markets.com.
The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.