The Federal Government’s second chance [UPDATED]Published 9:31am Friday, March 1, 2013 Updated 11:35am Friday, March 1, 2013
As of Jan. 1, 2013, The Bush tax code is permanent. The Clinton tax rates which would have become effective Jan. 1, 2013, would have reduced or eliminated the Fed’s revenue short fall. President Obama got a minimal revenue increase, by increasing the tax rate on individuals with large incomes (more than $400,000).
This will have no significant effect on the annual deficit and the total federal debt.
If this was a chess match, the President would have to concede that the match is over and it is time to start a new game.
If he continues to play a game that is lost, there will be four years of fiscal gridlock and federal paralysis.
I think that Obama should buy into (adopt) the Simpson-Bowles fiscal plan and begin working with the legislative bodies (House of Representatives and Senate) to pass legislation to implement it.
This plan is well thought out and has been previously studied and discussed by members of the House and Senate. It would behoove the President to request space in the Capitol and staff it with bipartisan individuals that could be in contact with legislators and have a direct line to the White House.
I believe the best individuals to head this committee would be Alan Simpson and Erskine Bowles. The plan is not perfect and tradeoffs and compromises will be required, but a sense of urgency should be in order. The President, Representatives and Senators can make changes and hopefully pass the legislation needed to get this country back to work.
Individuals and business have to recognize that for meaningful fiscal change, all American citizens are going to have to make sacrifices and help with the required fiscal investment.
The picture that comes to my mind is President Obama driving a car that is stuck in a snow bank. Alan Simpson and Erskine Bowles come walking by and give the President’s car a push which enables him to drive away.
Commission name and Report Title (purpose of the report is to reform the tax code and reduce the deficit): “The National Commission on Fiscal Responsibility and Reform the Moment of Truth.”
Edward M. Zahle