In the U.S there is a major problem that the Republicans and the tea party don't stop talking about. It is the issue of the debt and deficits. Now thhis issue is very important, and the U.S will face major problems in that. Even with Obama's major reform that will save billions of dollars there is still the problem of a lagging deficit. Bill Clinton put up a 250 billion dollar surplus. Bush with 2 tax cuts, 2 wars and 2 terms not only destroyed the economy, but left Obama before he even got in the white house with a 1.4 trillion dollar deficit.now with the end of the stimulus and bailouts this deficit will go down to 800 billion by 2012. after that the deficit is stay around that for the next 8 years. Even with unemployment rates going down the deficit will still stay. I think that the only solution to this is to eliminate all bush taxes. Now should this be done now? I think it has to be down eventually, and now would in one moment decrease the current deficit by 30% (450 billion) only in the first year. With this money Obama can put in place more money for states that are struggling with cuts, more tax credits, cash for clunkers program, and more help to struggling families. One time spending that will go away like the bailouts in a year. Now you might ask how would the economy do well if you raise taxes to high. Remember this isn't really an increase, but rather bring it back to the bill Clinton years Where the economy grew and stayed strong, and there was still a surplus. The bush tax cuts are do to leave next year. I think that either extend them for just the poor this year hen next year let them all expire would be the best idea, because there is no way you can have a surplus and make these tax cuts permanent.
See U.S deficit here
"We do not inherit the earth from our ancestors, we borrow it from our children." A Liberal-supporting, environmentalist blog. We blog according to our opinions, not those of the party or government. Free speech must win and that's why we have this blog. The views of two Montrealers and a Libertarian.
Sunday, October 17, 2010
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Yes, taxes must be raised. Who cuts taxes when you're at war? Bush and Harper, that's who.
ReplyDeleteCheck out figure 1 and look at the impact on deficits of the Bush era tax cuts.
http://www.cbpp.org/cms/index.cfm?fa=view&id=3036
And yet when the Tea Bagger and GOP are asked about tax cuts they say keep them all despite the fact that the upper 2% won't spend their savings disproportionately.
Moreover, ask them about spending and you get the usual cutting earmarks and "discretionary" spending which accounts for 30% of the overall budget.
They aren't serious about the deficit and they have no ideas to spur growth or jobs.
With the Repugs set to reclaim the House and perhaps even eliminate the Dems effective majority in the Senate, there's not much chance of tax increases.
ReplyDeleteAmericans have taken leave of their senses, it's as simple as that. They've become infantile, regularly indulging in magical thinking.
FOX News is America's leading cable news outlet and a good many Americans think it actually dishes out news. Breathtaking actually.
I don't believe America has the collective will to pull out of its nosedive. It lacks the resources and the cohesiveness to turn around its fortunes. With the middle class shrunken and atrophied, the United States enters an era of 'haves' versus 'have nots' and today's emerging oligarchy.