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The federal government’s has missed an opportunity [UPDATED]
Published 9:33am Friday, February 22, 2013 Updated 11:36am Friday, February 22, 2013
The George W. Bush administration started a war (Iraq) and instituted a significant tax reduction. These two actions would seem to be incompatible with keeping the federal government solvent.
This turned out to be the case and probably helped to contribute to over-stimulate the economy, which contributed to a larger and more painful recession. Barrack Obama’s administration inherited a fiscal mess.
feel that he handled his first four year in a creditable manner.
After all, Bill Clinton admitted that even he could not have fixed it in four years.
The general consensus in the media and knowledgeable individuals is that the feds need increased revenue and a reduction in spending to get our federal debt and annual deficit under control.
At the end of 2012, the Bush tax bill was set to expire and the Clinton higher tax rates would become effective.
I believe that it was unfortunate, that the Bush Tax Plan was made permanent, effective Jan. 1, 2013. The Clinton-era tax code could have been tweaked, with things like the “Earned Income Credit,” and “the $1,000 child tax credit” being added.
The AMT “Alternative Minimum Tax” could have been indexed for inflation, sparing many middle income tax payers unnecessary fiscal pain and suffering.
The increased tax rates would have affected almost all tax payers, but I believe everybody needs to buy in to the federal fix.
I think that Obama should have bought into the Simpson-Bowles fiscal plan and started to implement it. A combination of the Clinton tax rates and the Bowles-Simpson plan, would have most of the American public and American businesses contributing to the federal fix. I believe this would have resulted in the minimum pain and financial suffering in America.
At this point in time, I see no hope for increased revenue. The fact being, that with future extremely large government spending cuts (primarily, federal jobs being eliminated and reduction of government subcontractors), it is quite likely (100 percent) that there will be a substantial reduction in federal taxes, Social Security and Medicare collections.
This will result in even more spending cuts. It could result in reduced Social Security, reduced government pensions, increased Medicare premiums, reduced payments to Medical Care providers, reduced payments to care homes, etc.
The future of the American economy is very uncertain. It will be very interesting, as this is ground that has never been covered before.
The one thing we can all be certain of is that many of us will be experiencing extreme financial depredation, with few individuals being spared.
I do not see any way out of this fiscal mess. Every day that goes by without a fiscal fix, makes it much more expensive, painful and difficult to correct.
I pray that our politicians work together and come up with common sense solutions to solve this federal fiscal mess. I just hope and pray that it is not too late.
Edward M. Zahler,
Fergus Falls
Mr. Zahler, it is not that we do not tax enough, it is that we spend too much. It is that we have protected classes of people who do not conrtibute to our economy by earning taxable income, and thus force working people to pay higher taxes to support the indolent groups.
If the Congress had the courage, and 0bama would not block their way, almost every item in our national budget could be audited and hundreds of billions in spending eliminated every year.
If the budget of the Federal government for this year could be frozen, and the government forced to get by this year with no increases in spending, there would be no adverse affect on anyone but the overpaid Federal employees (save our underpaid military) and the indolent dependent class.
If every non military Federal employeee who retires for the next four or five years were not replaced, but automated and computer assisted methods added to augment the bloated Federal payroll, we would see actual improvements in effeciency in government, and a reduction in both the cost of government and our national debt.
What stands in the way of these sensible actions are the behemoth of the Federal, State, and local government unions, the indolent supported classes who are still capable of working to support themselves, and the Socialist controlled Democrat party, and their Supreme Ruler in the Whiite House, B.H. 0bama.
“it is not that we do not tax enough, it is that we spend too much.” Even though tax rates are at historical lows? You’ll have to explain to me what you mean by “spend too much” – without any context that phrase is meaningless. Get some figures and tell me what that means – otherwise you’re just making noise about something that you’re either unwilling or unable to comprehend. Once you get to that point, explain why it’s too much, then we’ll have something to talk about.
“The indolent groups”? You mean the one’s that make the labor market a market? We’ve had this conversation before, so here’s the refresher and we’ll make it simple enough so that those with only a tenuous grasp of “supply and demand” will understand. Since labor is a market (like commodities or stocks) if there is no competition for jobs (across the board – from “mere laborer” to “CEO”) then wages skyrocket (because you have to “lure labor” away from other places who are competing with you for their services). This then causes the price of production (of whatever) up, thus starting our way into a spiral of inflation. But you’re right about “classes of people” – even among those who pay taxes, those who labor for their wages and those who do not, but we’ve had that conversation before as well.
“almost every item in our national budget could be audited and hundreds of billions in spending eliminated every year.” While an interesting sentiment, is it actually true? Rather than just babbling gibberish about it, why don’t you help our government out and give us a list of things where we can save multiple billions?
“If the budget of the Federal government for this year could be frozen, and the government forced to get by this year with no increases in spending, there would be no adverse affect on anyone but the overpaid Federal employees (save our underpaid military)” – says the psychic Madam J., but the prophecy continues, “If every non military Federal employeee who retires for the next four or five years were not replaced, but automated and computer assisted methods added to augment the bloated Federal payroll, we would see actual improvements in effeciency in government,” – Beware the Evil Eye!
“And what rough beast, its hour come round at last,
Slouches towards Bethlehem to be born?”