Our President has now insisted that no deal can be made on raising the debt limit unless taxes are raised. This position is beyond absurd.
1) Until 6 months ago, the Democrats had full control of the government. If raising taxes was such a high priority, why did they not do it then? I'll tell you why, he wants to force the Republican's to raise taxes because most of them signed a pledge saying they won't. He knows that if they break their promise, they will face the wrath of the voters who put them in office.
2) No school of economics argues that raising taxes during a weak economy is a good idea. None. No nation has ever taxed and spent their way to prosperity. Even Obama agreed with this position late last year.
3) Taxes cannot bridge the spending gap. If you taxed all the "rich" at 100% of their income (assuming they don't change their behavior but keep earning the same amounts), you do not even come close to closing the deficit.
4) Since taxes cannot cover the deficit, whether or not we raise taxes, spending must be reduced dramatically. Must. There is simply no alternative.
The evidence is clear and unambiguous. The President and Democrats calling for raising taxes now are simply playing politics: if they truly thought that was a good idea, they would have done it last year when they held all the power. Anyone else arguing for higher taxes now is either being willfully blind or a useful idiot.
3 comments:
I agree, as does President Obama.
Obama vs Obama
politics aside, if that's even possible...
taxes are at historic lows. spending is at historic non-wartime highs. the economy is going to be anemic until we build more power plants of any kind. things are not looking good for maintaining the status quo.
i think we're going to have to both raise taxes and cut spending. dramatically. which is gonna hurt. and yeah, i'm with shoo, this should have been done long ago. this brinksmanship crap by both parties is pretty suicidal.
Taxes are at historic lows? By what measure? Marginal tax rates may be low by some measures, but tax revenues are at all time highs. As a percentage of GDP, it is about at the average since 1950, and significantly above the rate it was in 1950 when the top marginal rate was 91%. Higher tax rates do not equal more tax revenue: want more tax revenue, grow the economy and put people back to work.
The taxes increases being proposed for Democrats amount to $60 per year...this would solve about 4% of the deficit.
Cutting out the wars? The are costing us $160 billion per year.
So, the liberal position of cutting wars and taxing the rich takes care of about 16% of the problem.
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