"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.
Saturday, January 01, 2011
Deficit's still there Obama.
There will still be a deficit when Obama comes back home to the white house the country will still be in deficit. In fact not a surplus will even be predicted in next 10 years and even by then the U.S GDP will be the same as there debt. Meaning that the U.S will owe the same amount as they are worth. At that point countries don't tend to continue to lend money to a country that can't get a surplus ever. Obama needs to cut the deficit, but how? Well he should have eliminated the pointless Bush tax cuts. Now he will increase the debt another 850 billion. Clearly the U.S can't afford this. create a national sales tax that the U.S doesn't have reduce consumption in the U.S so the country's economy isn't so dependent on consumption. Raise the retirement age create a carbon tax and reduce the military budget and stop building more missiles. End subsidies to big oil or fossil fuels. To all this and pass one more stimulus that actually works by first giving relief to states, extend unemployment benefits, give small business tax relief and that's it no more spending after that. Unfortunately the Republicans are more for cutting, which is fine with me cutting spending is a good idea, but cutting will never be enough the U.S may need to realise this now or face major consequences that they need in order to balance the budget increase taxes.
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Obama couldn't have ended the tax cuts as he would not have had the votes to do so. Letting them expire would have meant higher tax rates for everyone as of today.
ReplyDeleteYou must not be terrible familiar with the tax deal achieved because it includes another 13 months of unemployment relief which is a stimulus plan in and of itself.
It also includes tax relief for business in an attempt to create jobs.
" At that point countries don't tend to continue to lend money to a country that can't get a surplus ever"
I guess you have never heard of Japan.
yes,but the tax plan included mostly the extensions of the impossibly expensive tax cuts that the U.S can't afford. Yes it is true Japan owe's more than it's worth,and because of that they are going to face major debt payments on the interest while they raise taxes just to pay that off and reduce programs to get a surplus all the while they have unemployment rising.
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