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The way forward, a choice in November
Original post made
by jimf01, another community,
on Jul 27, 2010
The Democrats controlling the federal budget process have openly stated they will defer action on President Obama's proposed 2011 budget until after the election. With another $1 trillion+ deficit to add to the $1.5 trillion deficit this year, and tax increases for everyone.
Of course, as the WSJ states, he Obama budget is subject to approval by Congress, and it's unlikely to pass without significant changes
These tax increases are on top of the tax increases already passed in to law
Sad thing is, I wish I could point to a GOP proposal that conservatives have actually gotten together to line up behind, to fix the problem we are in.
Rep Paul Ryan has proposed his roadmap
This LA Times op-ed says it is true to libertarian values, maybe a bit too libertarian for tax and spend Republicans?
60% of Americans get more from government than they pay in taxes, and President Obama's policies will move that closer to 70%. It is unsustainable. According to the CBO, our debt-to-GDP ratio will pass Greece 113% in 16 years!
Posted by Rae
a resident of Mohr Park
on Aug 5, 2010 at 1:27 pm
LOL!! Wow "jimf01"!! So you want to talk about lowering the deficit but don't want to look at the revenue stream, i.e. taxes???
Simple terms: No one (me, you, the government) can lower their debt if they don't bring in more money than they are obligated to minimally pay out, and then use the difference between revenue and minimal debt payment (if there is any) to pay down their remaining debt. You can't talk about Rep. Ryan's "Roadmap" without talking taxes since he proposes big changes to the tax code that will shift some of the tax burdens of the wealthiest 10% and corporations to the middle class and working poor.
Rep. Ryan would make Pres. Bush's tax cuts for the wealthy permanent while eliminating the Child Tax and Earned Income Tax Credits for the middle class and working poor. So, if Rep Ryan's plan were in effect in 2011, the bottom 20% of wage earners, making less than $20,063 would pay 12.3% more in taxes while the top 1% would pay 15% less with an overall revenue loss of $182.9 billion and that's just in 2011.
Rep. Ryan also proposes to eliminate the "corporate income tax", or taxes paid by entities taxed as a corporation, and replace it with a 8.5% "business consumption tax" more commonly known as a value-added tax (VAT), to be paid by the consumer. Of course, the federal VAT would be imposed on top of a state's sales tax, so here in our little area of the world we'd be paying initially 18.25% on our purchases (8.5% VAT + 9.75% state sales tax). Who's to say how high the VAT would go . . .
Rep. Ryan proposes to eliminate income taxes on capital gains, stock dividends and interest while continuing to tax income that comes from work. He says that part of his plan "promotes work, savings and investment" . . . because, of course, so many of us just throw away all that extra money we have on frivolous stuff after paying our bills.
But hey, not to worry! The Republican leadership of Boehner, McConnell, Gregg and Kyl have assured us that cutting taxes for the top 10% of the country will have no impact on the revenue stream and therefore does not require a commensurate spending cut. It's only that pesky middle class and working poor with all their demands on the government that require budget cuts. Web Link Web Link
Rep. Cantor, a small voice of reason (at least until he gets spanked and falls back in line) did say "[I]f you have less revenues coming into the federal government, and more expenditures, what does that add up to? Certainly you're gonna dig the hole deeper." Which brings up the other part of paying down the deficit expenditures.
Our country's biggest expenditures are for the wars in Iraq and Afghanistan (more than $1 trillion so far), Social Security, Medicare and Medicaid. Rep. Ryan's plan does not address the cost of war, which not only cost thousands of American lives, but also decimated our budget surplus. He does address the Social Security, Medicare and Medicaid with plans to privatize them.
Privatization of the "entitlement" programs has been, and should continue to be an interesting debate. Given what millions of people have experienced over the last 10 years with the loss of their savings and 401Ks due to fraud, stock market tumbles, job loss and bankruptcy (both corporate and individual) I don't think Rep Ryan is going to find a whole lot of support for privatization of Social Security, Medicare and Medicaid . . . even from the Tea Party crowd, who, according to the April NYT/CBS poll, are receiving Social Security (49%), covered by Medicare (43%), and say the benefits are worth the cost (62%). Web Link
While it would greatly help to get out of the nation-building business, what we need in the interim are politicians who are first willing to sit down and do the hard work by going over every single line item in the budget and then, having the courage to eliminate those bridges to nowhere, programs that no longer exist, earmarks for campaign contributors and government waste. Then we take a look at where we are with revenues vs. outlay and decide where to go next.
In any case, shifting the tax burdens from the wealthiest 10% and corporations to the middle class and working poor does nothing but increase numbers of those folks struggling to make ends meet and places an even greater burden on our government unless you're thinking the real solution for anyone under a certain income level, over 55, or receiving unemployment, Social Security, Medicare or Medicaid is a Soylent Green one!!