Angels

Americans want to have it both ways [UPDATED]

Published 9:33am Tuesday, September 4, 2012 Updated 11:35am Tuesday, September 4, 2012

When push comes to shove, American taxpayers and politicians cave in and kick the deficit mess down the road so that our children and grandchildren can pick up the pieces.

We refuse to give up or pay for our sacred cows.

We want to have our cake and eat it, too. Even here in Otter Tail County, we’re in favor of cutting the other person’s federal program, but not ours.

“Since we’re living on borrowed money, we have to owe someone. China is one of those someones,” says David Walker, former Comptroller General of the United States.

Walker said that if we don’t end up reforming our ways, federal taxes will have to double within the next 20 to 30 years, just to stop the bleeding. Every American worker’s share of the national debt is more than $90,000.

“Interest on the national debt, if we don’t take immediate action, will soon be the largest item in the federal budget,” said Walker. “And you get nothing for it.”

In 2010 Republican states, on average, received $1.46 in federal spending for every tax dollar paid in. Democratic states, on average, received $1.16.

The federal government must make regular interest payments on the money it has borrowed to finance past deficits . In 2011, these interest payments claimed $230 billion, or about six percent of our federal budget.

Political inaction will result in the United States facing higher borrowing costs in the future, in the form of hikes in interest rates.

Financial analysts say this could hamper the American economy and result in a further slowdown in economic activity.

The Simpson-Bowles Commission’s work included ways to save trillions of dollars. Republicans and Democrats on the commission recommended deep domestic spending cuts, revamping programs like Medicare and Social Security and initiating new tax revenues.

Republicans refuse to budge on tax increases and Democrats refuse to make some necessary program cuts. The Chinese and others benefit from our fiscal irresponsibility.

Former U.S. Sen. Alan Simpson, Wyoming Republican and an architect of the Simpson-Bowles commission recommendations, is frustrated with members of both parties.

“Politicians refusing to negotiate are hurting our country, not helping it,” said Simpson.

Simpson has soundly criticized anti-tax advocate Grover Norquist, blaming him for standing in the way of a bipartisan solution to the deficit. Simpson also has criticized the AARP (American Association of Retired Persons) for standing in the way of entitlement reforms.

Democrat Erskine Bowles, another architect of the Simpson-Bowles Commission, praises Republican vice presidential candidate Paul Ryan for being honest and straightforward about the need to revamp federal programs.

Yes, you heard right. We have a Democrat supporting the economic philosophy of a Republican.

There also are times when Republicans support the viewpoints of Democrats. So there is some hope that the political system can indeed work.

The right thing to do, as noted by the Simpson-Bowles Commission, is to cut spending, revamp programs and produce more revenue with modest tax increases.

More selfishness, however, appears to be the order of the day.

 

Tom Hintgen is a columnist for The Journal. His column runs on Sundays.

  1. William Schulz

    In all, a fairly balanced piece, but the author can’t resist showing his liberal leanings to insinuate that States which are republican get more back from the government than democrat states. A fine example of the old saw thet figures lie and liars figure. Unsaid is that most republican states have military bases which receive funds, and , overall, the military presence in traditionally democrat states have less in way of military installations. Also, lets say, oh, NorthDakota,
    a republican state, gets $1.46 tax money back for every one of its about 6hundred residents. That would be about
    $876 THOUSAND. Now, California, as liberal a democratic state as one find, gets only about $1.16 per each of its 40million residents. That is about $46 MILLION. So, which of those states get a bigger TOTAL return, ND or California. Which is larger , $876,000 or $46,400,000? Those aren’t the exact figures, but thay do show how figures need to be examined and questioned when used to promote the liberal views of writers such as this author.
    A better index would be to show how much tax money is returned for each resident of the states, and then democratic states wind up being tall hogs in the money trough..welfare..rent payments..food stamps..manintaining several public school systems to satisfy students whose parents refuse to allow them to be melded into the English language and the American culture..public universities which give free tuition rides to immigrants and minorities while making others pay full freight… and on and on. Should conservatives “compromise” with that, or maintain a posture which protects working people from the excesses of liberals?

  2. Phaedrus Wolf

    As usual Bill, your claims have no basis in reality, food stamps, unemployment benefits, etc. are included in the $1.46 and $1.16 figures. You are aware that the Defense Department has their own budget, and it’s unlikely that defense spending was included in that total (in other words, it’s not because of military bases that the figure is higher for “red” states – that seems like something you just fantasized about). In any event, you made the claim, so the burden of proof falls to you – find the methodology that was employed and prove me wrong.

    But let’s use your figures (where you have them – and if figures lie, it’s probably even easier to lie when you don’t include figures that can be checked, right?) So a place with 600,000 gets an extra $276,000 and the state with 40 million residents gets an extra $6.4 million dollars (probably not enough to purchase one of Romney’s homes – if we’re just going to throw around off-hand remarks). On the other hand, if California (and there are plenty of military bases in California) had North Dakota’s return, they’d get $58.4 million or $52 million more dollars than they currently are receiving. You should compare apples to apples, not apples to fishing strategies. Of course, maybe that’s what they meant by “figures lie”?

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