Well, the “deal” is done. President Obama gets an “F” for his lack of leadership, and Congress is right there with him! Republicans and Democrats alike failed to address the real issue of spending.
This is not the “deal” we needed. It only temporarily addresses the problem. By the end of the “deal” timeframe – 2021 – our debt will be somewhere between 76 and 100% of our economic activity. Prior to that time, it is highly likely the United States’ credit rating will be downgraded.
We are hearing constant repetition of the focus-group-tested phrase “balanced approach.” President Obama’s idea of such an approach is highlighting oil and gas subsidies and taxes on the rich. And who could forget the corporate jet tax break, which accounts for less than 0.2% of the whole, but makes it sound like the President is standing up for the “little guys” without planes?
Rest assured, all the approved messages are expressly designed to stir emotional reactions from voters. Unfortunately for our country, emotionally charged phrases don’t solve our spending problem.
President Obama says it’s only “fair” – yet another charged word – that these groups should be gouged to pay for his definition of fair and balanced. The President never addresses the fact that 51% of us are already not paying ANY income tax. What’s fair about that?
None of us expect someone making $20,000 to pay the same amount of income tax as someone making $200,000. But it is not unreasonable to expect that both pay something toward supporting their country’s operation. If the tax burden is too large for them, then the government should stop spending so much!
The “big government needs to spend more money on social programs” crowd says that lower-income people spend a larger percentage of their incomes on taxes such as sales taxes. This argument may be mathematically correct but the argument that it means they are already paying their fair share isn’t.
The fact is, very few of the taxes the big government crowd counts go to support the operational budget of the national government. Instead, they count gas taxes, sales taxes and property – taxes most of which are state and local in nature.
We can legitimately argue that included in the cost of goods purchased by low income families are all the income taxes and regulations forced upon businesses and passed on to the American public by their federal government. You won’t hear the big government crowd make that argument, because it conflicts with other points they want to make on tax fairness. Additionally, it would mean that they would have to admit that those of us in the 49% who are paying income taxes would be double-taxed!
Fairness, Mr. President, will be when everyone is making a contribution toward supporting the federal government via their income tax. You can start by eliminating or significantly reducing the amount of wealth distribution taking place via welfare programs. One of your predecessors and the father of the of the U.S. Constitution, James Madison, said there was no provision in the Constitution for such expenditures.
Republicans are not blameless. They spend too much on tax breaks when they should be making the tax code better through the elimination of the income tax and onerous regulations. Regulations and out-of-control bureaucracies are hurting our economy. Changes in tax code and the elimination of costly and questionable regulations will do far more to get our economy rolling again than any stimulus or tax break!