Do you believe high taxes contribute to filing bankrupt. In the big picture.

[nate24168]

Do you believe high taxes contribute to the rise in people filing bankrupt. I feel that the money people earn which instead of going into a households account, and is going to pay high taxes has helped people that are just scrapping by to take the plunge into filing bankrupt.

Why is nobody talking bad about high taxes causing economical issue for people but feel health care bills cause less of a problem?

[mysticbeauty_nbeast]

Do you believe high taxes contribute to the rise in people filing bankrupt. I feel that the money people earn which instead of going into a households account, and is going to pay high taxes has helped people that are just scrapping by to take the plunge into filing bankrupt.

Why is nobody talking bad about high taxes causing economical issue for people but feel health care bills cause less of a problem?

I don't believe that 'high taxes', or paying a tax share amount has anything to do with bankruptcy. I believe many factors contribute to being forced into having to file..but taxes wouldn't be one of them. For example, living beyond your means; loss of a job(s), serious illness the depletes the unprepared person for such a devastating loss of time on the job; making poor decisions with your money...like buying a new car every two years..having the latest new gizmo..buying everything on credit creating high revolving credit debt. The "I want it now" generations can't even think two steps ahead much less farther on down the road..and when any one of the things I mention above happens..they are at a complete loss in how to deal with it. Completely unprepared. Bankruptcy is their 'Get out of jail free card.".

Number one reason for bankruptcy today is loss of a job with very high credit debt. Second is medical tragedy with loss of job and no money coming in at all. Neither of these have anything to do with taxes or paying your taxes.

~Mysty

[PeterGriffin]

Number one reason for bankruptcy today is loss of a job with very high credit debt. Second is medical tragedy with loss of job and no money coming in at all. Neither of these have anything to do with taxes or paying your taxes.

~Mysty


Not exactly.

Medical problems caused 62% of all personal bankruptcies filed in the U.S. in 2007, according to a study by Harvard researchers. And in a finding that surprised even the researchers, 78% of those filers had medical insurance at the start of their illness, including 60.3% who had private coverage, not Medicare or Medicaid.

Medically related bankruptcies have been rising steadily for decades. In 1981, only 8% of families filing for bankruptcy cited a serious medical problem as the reason, while a 2001 study of bankruptcies in five states by the same researchers found that illness or medical bills contributed to 50% of all filings. This newest, nationwide study, conducted before the start of the current recession by Drs. David Himmelstein and Steffie Woolhandler of Harvard Medical School, Elizabeth Warren of Harvard Law School, and Deborah Thorne, a sociology professor at Ohio University, found that the filers were for the most part solidly middle class before medical disaster hit. Two-thirds owned their home and three-fifths had gone to college.

But medically bankrupt families with private insurance reported average out-of pocket medical bills of $17,749, while the uninsured's bills averaged $26,971. Of the families who started out with insurance but lost it during the course of their illness, medical bills averaged $22,658.


http://www.businessweek.com/bwdaily/dnflash/content/jun2009/db2009064_666715.htm

That's the status quo conservatives are fighting for.

[mysticbeauty_nbeast]

Not exactly.



http://www.businessweek.com/bwdaily/dnflash/content/jun2009/db2009064_666715.htm

That's the status quo conservatives are fighting for.

Your article stated 2007...and for that time period I would whole heartily agree with them that the number 1 reason was medical tragedy/illness. This is now 2009 Peter...and while medical related bankruptcy is still high...it now has a contender to fight with...high revolving credit debt and/with loss of job. Gee..just the type of change I was hoping for from soft power hungry Democratic POTUS and his gang of Utopian idealist. :rolleyes:

Put the two causative factors for reason of bankruptcy today together, and my post still stands on two legs all by itself. But hey..thanks for playing...lol.

*don't even get me started on government run health care...it'll make me scream..and it's too early and I've not enough coffee to bare it yet. * :shhh:

~Mysty

[PeterGriffin]

Your article stated 2007...and for that time period I would whole heartily agree with them that the number 1 reason was medical tragedy/illness. This is now 2009 Peter...

Once again, with feeling:

Medically related bankruptcies have been rising steadily for decades. In 1981, only 8% of families filing for bankruptcy cited a serious medical problem as the reason, while a 2001 study of bankruptcies in five states by the same researchers found that illness or medical bills contributed to 50% of all filings.

Unless you have some different data, I highly doubt a decades long trend has reversed itself in the last two years.

[mysticbeauty_nbeast]

Once again, with feeling:



Unless you have some different data, I highly doubt a decades long trend has reversed itself in the last two years.

Are you trying to be obtuse? I said it is one of the major reasons...what more do you want? Scream it from the highest tower? :rolleyes: It's not the ONLY or highest ranked reason anymore..the Two highest reasons are Medical and High Debt with job Loss. :rolleyes:

Passes a coffee cup to Pete...here...wake up a bit..then revisit what I wrote. Mornings....gotta love um.

~Mysty

[WhiteHatBobby]

High taxes and excessive anti-business government regulation is responsible for bankruptcy EVERYWHERE in this country now.

[PeterGriffin]

High taxes and excessive anti-business government regulation is responsible for bankruptcy EVERYWHERE in this country now.

Link?

[Safiel]

Taxes and regulatory policy are aggravating factors.

The prime factor is Federal Reserve inflationary monetary policy that leads to malinvestment and investment error.

[PeterGriffin]

I see a lot of assertion of conservatarian ideology as fact, with nothing to back it up.

Meanwhile, almost two thirds of bankruptcies are actually caused by catastrophic medical bills, and close to eighty percent of those people had private health insurance, as documented earlier.

[nate24168]

So you do not believe the income losses caused by higher taxers causes people to be forced into going bankrupt.
I figured the money people pay in high taxes could cover a few house payments.

[PeterGriffin]

So you do not believe the income losses caused by higher taxers causes people to be forced into going bankrupt.
I figured the money people pay in high taxes could cover a few house payments.

It's common when people make an assertion to back it up with some verifiable data. Just thinking out loud here.

[mysticbeauty_nbeast]

Stats, stats and more stats...as you requested:

http://www.uscourts.gov/Press_Releases/2009/BankruptcyFilingsJun2009.cfm

site shows up to Aug of 2009 bankruptcy filing...business and non-business numbers. (chp 7 & 13)

http://www.uscourts.gov/Press_Releases/2009/BankruptcyFilingsDec2008.cfm

site shows the full calendar year of 2008....business and non-business numbers. (chp 7 & 13)

http://www.bankruptcy-statistics.com/job-losses-housing-market-driving-more-bankruptcies.html

site shows the top 3 reasons for bankruptcy...which gee..we were both right Pete..medical/job loss/high credit to income ratio

excerpt from site:

The agencies affiliated with the AICCCA used to be able to help 20-25% of the people who came to them to avoid bankruptcy. Now they find they can only help about 7-8%, Jones explained.He blames the problem on three things -- job losses, the disastrous housing market and medical bills. These are the same three things that have driven people to bankruptcy for years.

For years...that one stuck out like a sore thumb. Not just medical..as many would have us believe. High jobless numbers along with a crashing housing market has forced many who would otherwise not have to claim bankruptcy into exactly that.

And there ya go....:hug:

~Mysty