Rep. Tipton tells us that the federal government has a deficit problem caused by a spending problem. Might his concern for spending cuts be based upon the fact that spending will almost exclusively impact the poor sparing the 1 percent? Since most of the recent deficit was caused by the recession which in turn was caused by Wall Street excesses, wouldn’t it make sense to ask Wall Street (currently enjoying record profits) to join in reaching a solution? Requiring a minor sales tax on security trades (currently not covered by any taxing) could eliminate much of the need for a spending reduction.
During the recent presidential election, Mitt Romney suggested the closing of tax loopholes. How quickly Rep. Tipton and his party have forgotten the call for tax reform. They refused to allow things like eliminating the subsidies for big oil and dropping the tax loophole which allowed Romney to pay federal taxes at a rate around 15 percent on his millions. Those changes would have eliminated the need to follow the meat ax spending plan called the sequester.
If the public realized that corporations such as General Electric pay little or no federal taxes they might not be so quick to buy the 1 percent solution to cut government spending. Over the last decade, General Electric has paid a tax rate of 1.8 percent on their earnings of some $81 billion. It sure looks like a revenue problem caused by those who have the money to write the tax code, not earned benefits such as Medicare and social security which need to undergo revision.