As of late we continue to hear the same old nonsense that tax increases in part are again needed to help deal with our current deficit problem and to help avoid the so called Looming Fiscal Cliff. But upon closer examination this premise is flawed! If Obama and the Democrats got there way and taxes were raised on everyone making over 250k per year and above, the additional revenue generated would only run the federal government for a matter of days or weeks . Likewise if the Republicans got their way, and adopted an earlier Democratic party proposal and taxes were raised on everyone making over 1 million or more per year etc, it would again only generate enough additional revenue to run the government for a matter of days or weeks. If we take this argument to the extreme and were to tax all Americans at 100% and confiscate all their income which of course we could only do once, the government would raise about 1.4 trillion in additional revenue but we would still be running an annual deficit of some 200 to 300 billion dollars!
Let me put it this way. It is worthless and therefore irrelevant to add to ones house by building new rooms etc, if the neglected dam up the street is about to burst thereby destroying the house. The house and its additions are the government programs that many want, the dam that is about to burst is the yearly deficit and the fact that we are printing money out of nothing in order to purchase our own debt (over 70 percent off all Federal Treasures are now purchased by the Federal Government)!
It should be obvious given the above figures that the problem from beginning to end is simply spending! The fact that you have both parties spending months haggling over tax increases that would generate only enough additional income to run the government for a matter of days or weeks is absolutely incompetent and ridiculous; and I might again say “irrelevant!” What is needed are cuts in federal spending in the order of trillions of dollars not billions, and not over 5 or 10 years but right now!! We either do this soon or eventually in the not so distant future our currency collapses or is massively devalued as the government continues to print money out of nowhere in order to pay its bills i.e. fund its deficits (this is the true fiscal cliff)!
Therefore when all is said and done, it should be obvious, that both the current and future programs and bills that Congress proposes and passes, and all the bells and whistles that go with them whatever they may be including Obama Care etc are irrelevant unless Congress deals first with the out of control spending issue.
My guess of course, is that in the end when all the committee meetings and media chatter have come to a close that the Democrats and Republicans together with the President will agree to tax increases in return for nonexistent or irrelevant spending cuts thereby fixing absolutely nothing and further collapsing and depressing the economy.
In short, the sane and moral response of any Federal Congressman, Senator or even President for that matter should be “OH MY GOD WE HAVE TO CUT SPENDING RIGHT NOW BEFORE WE COLLAPSE!” I was told by a friend that much of what I say in these letters to the editor both past and present goes over the heads of many of the people in the Valley and other who read them. If this is so, it is not because of a lack of native intelligence as it is that things simply have not gotten bad enough yet for enough people to care.