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With a rising unemployment rate, which I would argue is artificially low given the growing number of people who have exhausted their benefits, the taxable base is shrinking and in the harshest perspective is an even bigger drag as more people take on unemployment benefits. With volume down, in order to maintain or grow the tax revenues, odds are taxes will have to increase.

Admittedly, a rather simple perspective, but oftentimes distilling a problem down to its core in such terms is illuminating.

Chris Versace is director of research at Think 20/20 LLC, an independent research and corporate access firm based in Reston. He can be reached at At the time of publication, Mr. Versace had no positions in companies mentioned. However, positions can change.