Ted Bauman Explains Why Credit Market, Not Taxes, Are The Real Problem

Ted Bauman edits three financial newsletters for Banyan Hill Publishing, a company he joined in 2013. He grew up in South Africa and moved back to the United States a number of years ago. One of his financial newsletters is Plan B Club which helps people protect their money and keep it from being taxed as far as the law will allow. Another one, Alpha Stock Alert, gives people the information they need to safely grow their money. The other publication, The Bauman Letter, shows people the strategies to follow in order to gain personal freedom. While he was in college he studied economics.

As Ted Bauman points out, people in the U.S. have always had a preoccupation with taxes since the founding of the nation. It’s been a big topic of late due to the Republican tax plan that mostly dramatically slashed the taxes on corporations and the very wealthy. The reason we care about taxes he says is that paying them reduces our disposable income. What we could have used on some other items or, better for building our wealth, is sent off to the government. The average middle-class family pays somewhere between 15% and 25% of their gross income in taxes each year including both income taxes and FICA. That’s a pretty big number. Read more at ezinearticles.com about Ted Bauman

However, taxes are not really the problem Ted Bauman says. The real threat to everyone is the servicing of debt. It’s rather credit markets that are the real problem. Through credit markets massive amounts of money are taken from low-income and middle-class people and funneled to the richest household in the United States. It’s also pretty much invisible. Most people think the major expenses in their lives like their house, medical expenses, and education are a fundamental reflection of supply and demand. People think these things are expensive because there’s a lot of demand for them but, in fact, that isn’t even remotely true.

Credit is cheap in America for a reason and it’s because it benefits the mega-wealthy. If people couldn’t access credit everything would be far less expensive simply because they couldn’t afford to use cash to buy their house, for example. Because credit exists people go into massive debt for things that they otherwise couldn’t or wouldn’t buy. Ted Bauman points out that the richest families put their money into the consumer lending market which creates a system that feeds on itself for their benefit.

To know more on Ted Bauman, visit:http://www.talkmarkets.com/contributor/Ted-Bauman