…here’s the question for 2012: If we the people don’t want the higher taxes that are needed to support not only ObamaCare but a growing federal government, are we willing to support the real cuts that go along with that choice? And if we decide we don’t want these programs touched, will we accept the higher taxes that go along with keeping them, including for people making a lot less than $250,000?
This is the heart of the argument shaping up between Mr. Obama and Paul Ryan, chairman of the House Budget Committee. Manifestly Mr. Obama believes that as much as Americans say they want smaller government, the moment they find one of their favorite programs (e.g., Medicare) up for consideration, they balk.
Mr. Ryan and Republicans make the opposite bet: The president’s spending has made Americans more willing to face up to these choices, especially if the alternative is higher taxes on more people.
This article, though it frames the fiscal questions fairly, like many others fails to get to the bottom line of such fiscal questions. It portrays our debate as one of [i]”either we accept all the higher taxes to pay for all the programs or we cut back the spending”.[/i]
More accurately the true question is; [i]are we going to continue the insatiable growth of bloated government with its ever increasing levels of waste which sap the capitalistic economic power of the nation, or, are we going to return to a Constitutionaly limited Federal government and unleash the capitalistic powers which made this nation an economic powerhouse in the first place by restoring maximum freedom and liberty to the people?[/i]
Its not just about spending, taxes, and deficits; its about freedom, liberty, and excellence.
This article makes a fair point. Americans love austerity… until they find out what that really means and how many of their favorite programs are going to get axed. The GOP is discovering this the hard way. The Ryan plan just passed by the HofR which supposedly presents a plan to balance the budget somewhere in the 2040’s does so by eliminating Medicare as it currently exists for people under a certain age group and factoring in trillions of dollars in saving from future (though not specified) cuts in domestic spending.
Setting aside for the moment that any plan to balance the budget three decades from now is a joke, it does demonstrate the huge gulf between theory and political reality. The simple fact is that neither party has any interest in dealing with the debt in a meaningful way, because ANY effort to do so would be political suicide. This country has a two year election cycle. That makes it impossible for any Congress or administration to make the kind of very painful long term policy decisions that need to happen.
Whether we have the political will, as a nation, to meaningfully tackle our budget crisis, is the $14 trillion dollar question. If we do, it will have to be through budget cuts because the confiscatory taxation that would otherwise be required will destroy economic growth.
Again, this is about freedom and liberty. Everytime you think you are getting something from the government for “free”, it has a cost. Your freedom and your lilberty. So the ultimate question is; how do we want to live: in freedom or slavery?
It doesn’t have to be either-or. Contrary to this author’s assertion, polls show that most Americans are willing to pay higher taxes — and the % are even higher when the question is taxes for the very wealthy and corporations. Seeing congress extend billions in tax breaks for the oil industry while simultaneously cutting programs for the needy (like Medicare or heating oil subsidies) infuriates most voters.
On the other hand, there is no question that there need to be sacrifices in terms of the budget and we need to be creative about reducing costs for social security, the military and medicare (the big three).
Slashing government programs and putting the onus on the states would be a disaster; most states are already in worse financial shape than the federal government and they would not be able to pick up the slack. Not only that, there would quickly become a patchwork of social policies and regulations that would make business a nightmare for any interstate industries.
[i] most Americans are willing to pay higher taxes[/i]
Would be interested in a citation for that claim. Does that big majority include the ~50% of working families NOT paying income taxes? The subject of increased taxation is not a matter of whether you like it so much: corporations in America have one of the highest tax rates globally. It makes us un-competitive. The truly rich do not live off of income, they live off investments. A “soak the rich” tax rate is just sophistry, pandering to the class warfare that Democrats so love.
If silly progressives win the day on the budget battles there is one thing they cannot escape. A destruction of the American economy will hurt them as (worse) bad as it will me. Be careful what you wish (vote) for; you just mgiht get it.
Here you go Captain:
[url=http://www.washingtonpost.com/wp-srv/politics/polls/postpoll_04172011.html]Washington Post/ABC Poll[/url]:
“In order to reduce the national debt, would you support or oppose raising taxes on Americans with incomes over 250-thousand dollars a year?”
STRONGLY SUPPORT: 54%
SOMEWHAT SUPPORT: 18%
SOMEWHAT OPPOSE: 10%
STRONGLY OPPOSE: 17%
[url=http://www.mcclatchydc.com/2011/04/18/112386/poll-best-way-to-fight-deficits.html]McClatchy-Marist poll:[/url]
“On tackling the deficit, voters by a margin of 2-to-1 support raising taxes on incomes above $250,000, with 64 percent in favor and 33 percent opposed. Independents supported higher taxes on the wealthy by 63-34 percent; Democrats by 83-15 percent; and Republicans opposed by 43-54 percent.”
Now I’d like to see a cite for “50% of working families don’t pay income taxes.”
And surely you know, American corporations may have one of the highest tax rates globally, but they pay some of the [i]lowest[/i] taxes overall thanks to various credits and deductions. General Electric made $5.1 Billion in 2010 — how much did they have to pay in taxes? ZERO. So don’t tell me they’re overburdened by their tax obligations.
And by the way, it’s not just GE:
[url=http://www.reuters.com/article/2008/08/12/us-usa-taxes-corporations-idUSN1249465620080812]Study says most corporations pay no U.S. income taxes[/url] – Reuters
Ah yes, the $250K dollar question. And you are impressed with those results? Problem is, with the current trajectory of spending, you can confiscate ALL the income of those earning $250K and higher and it won’t even cover the deficit for one Obama fiscal year (per the IRS). And you can only confiscate all the money once!
Now, if you asked the more realistic question which every politician in DC knows is the correct question: [i]How many Americans earning $1/yr or more are willing to pay more taxes to support the style to which we have come accomsted to living?[/i], the answer is going to flip—and they all know it!
And what about Corporate America? Just because the tax code carves out a host of special privileges for GE doesn’t mean corporate American is living fat off the hide of the poor. GE has more lobbyists in DC than some small towns have population. Most of corporate America can’t buy those preferences and pay the taxes that put them at a disadvantage with their overseas competition. And many of those who don’t pay US income taxes are in that catagory because so much of their operation is offshore (eg, oil companies who CAN’t drill here!!) and they pay foreign taxes.
And before you scream about the oil companies, just remember that they place big billion dollar bets everyday……and some don’t pay off. Like Shell just found out when they spent $4B in the artic and Obama’s EPA said “nada” to an air permit. You should be thankful that they have the deep pockets to keep the oil flowing so you can put gasoline in your tank.
And of course liberals are convinced that oil companies are just bloated with profits that are stuffed under some big mattress somewhere. Not so! I have been an Exxon stockholder for over 30 years. In that period of time I have averaged about a 5-6% (pre-tax) return on that investment—-not bad for a long term position but by no means a pot of gold at the end of the rainbow either.
Like I said elsewhere, believe in the class warfare and believe in the power of taxation to cure all that ails while the spending party goes full blast. IF it collapses, it will be an equal-opportunity collapse. We will all get to share the misery——-hey, that would be an equal outcome, the Holy Grail of Liberalism!
Good, so we’re agreed that all the special priveleges and tax breaks for giant corporations should be abolished, and across the board spending cuts need to be combined with tax increases for all levels of income. Glad we’re on the same page.
Delusion is wonderful thing, for those who delude themselves. Not only are we not on the same page, I would suggest not even in the same universe of ideas.
But like I said, if it all collapses, we will then be in the same pickle.