Taxes
I can't remember what I read, or where I read it (I know, great attribution) but someone said that as of December 31st the recession is going to worsen as most Americans (probably just the 45% that pay the taxes in the first place) see a drop in their spendable income. Because the Bush tax cuts are going to expire.
President Obama had said that he would not extend those cuts for just those earning over $250K. But now Congress is proposing that they do extend the tax cuts, for at least two more years. Which makes me laugh. Democrats are scared of losing seats and their majority, which more and more people are thinking is a possibility, especially in the House. So, rather than irritate the top earners (and top employers) they will extend the cuts through the end of this first term, and deal with it after the fact.
My opinion on this, has changed. Somewhat. Sort of. In that I'm conflicted.
If the tax cuts were "paid for" for all time, they would have been permanent, but they weren't. The Republicans couldn't find a way to pay for them, long term. And I believe that Alan Greenspan is right when he says that the biggest threat to our economy at this point, right now, is not new taxes, but the outrageous deficit.
But, I also agree with Mitch McConnell that the problem isn't that we don't tax enough, it's that we spend too much. So ... my solution?
You have to cut and raise. The bill is coming due. So we have to cut spending and we have to raise taxes. But I don't think we can raise taxes right now, especially on businesses that already see raising taxes in their future (due to health care and cap and trade, etc). So let's start the process of getting back in the black by cutting spending. They are already slashing military budgets. But what is really crushing us, what really is going to throw us over the edge, are Social Security, Medicare and Medicaid. We have to make cuts. Or maybe we cut education and tell all Americans they have to home school their kids. I dont know. Because cutting benefits for the elderly just is wrong. They've worked hard. It's this younger generation that refuses to do their part. The stupid 55% of the country that don't even PAY taxes, that live on government money (read: my money).
But the problem is real. And somebody is going to have to do something quick. And I don't mean print money.
President Obama had said that he would not extend those cuts for just those earning over $250K. But now Congress is proposing that they do extend the tax cuts, for at least two more years. Which makes me laugh. Democrats are scared of losing seats and their majority, which more and more people are thinking is a possibility, especially in the House. So, rather than irritate the top earners (and top employers) they will extend the cuts through the end of this first term, and deal with it after the fact.
My opinion on this, has changed. Somewhat. Sort of. In that I'm conflicted.
If the tax cuts were "paid for" for all time, they would have been permanent, but they weren't. The Republicans couldn't find a way to pay for them, long term. And I believe that Alan Greenspan is right when he says that the biggest threat to our economy at this point, right now, is not new taxes, but the outrageous deficit.
But, I also agree with Mitch McConnell that the problem isn't that we don't tax enough, it's that we spend too much. So ... my solution?
You have to cut and raise. The bill is coming due. So we have to cut spending and we have to raise taxes. But I don't think we can raise taxes right now, especially on businesses that already see raising taxes in their future (due to health care and cap and trade, etc). So let's start the process of getting back in the black by cutting spending. They are already slashing military budgets. But what is really crushing us, what really is going to throw us over the edge, are Social Security, Medicare and Medicaid. We have to make cuts. Or maybe we cut education and tell all Americans they have to home school their kids. I dont know. Because cutting benefits for the elderly just is wrong. They've worked hard. It's this younger generation that refuses to do their part. The stupid 55% of the country that don't even PAY taxes, that live on government money (read: my money).
But the problem is real. And somebody is going to have to do something quick. And I don't mean print money.
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