Monday, January 03, 2011
Congress is coming back.
On Wednesday the senate and congress is coming back. It seems a mix of issues are going to come this year. the Deficit will be big news today, the health care bill will be very interesting how that plays out. many Republicans ran on repealing the health care bill thing is that there is no way the health care bill will be repealed. It seems that the only thing that could get done this year would be major reforms I hope, both the Republicans and Democrats believe in some way of reducing the deficit why not then make a compromise that actually would work. Cut spending in : the military, government programs and increasing the retirement age. The Republicans could possibly agree with that and if Obama can really sell it maybe he could push in minor taxes like a national sales tax starting at 5% which would be one of the lowest sales tax in the developed world. These plans could lower the the deficit dramatically and increase revenue while doing these actions slowly over the course of time to not hurt the economy. Although I still believe that the U.S must raise income tax I think that the income tax increase to the Bill Clinton era should include extended unemployment benefits,tax relief to small business and more relief to states. Yes it is true some of the stimulus I stated are already in the tax deal Obama passed ( thank you Anonymous), but I think then you should increase relief to the states like California who really need it, while still telling the state to cut in the budget by giving 1$ of new spending for every 2$ of cuts the state makes. Without increasing the income tax I think the U.S will never reach surplus without even more dramatic cuts in the budget.