Let it Burn.
America just re-elected a guy who presided over four years of deficits exceeding a trillion dollars. That’s never happened before (the deficits I mean…we’ve re-elected presidents before). The White House believes it now has a mandate to raise taxes on the wealthy. The House of Representatives believes it has a mandate to keep that from happening. The Senate believes it has a mandate to never produce a budget, which it has failed to do for more than three years now. Is any of the foregoing true? Who knows. I have no confidence in most Americans knowing the difference between the debt and deficits, let alone ways to fix it.
The day after the election, House majority leader John Boehner said he was ready to talk to Barry about reducing our deficits. He said he was ready to put new revenue on the table through tax reform. Some of the more pathetic members of the Republican party have even agreed to increase taxes the wealthy, despite overwhelming proof that doing so will have virtually no impact on the deficit, while actually harming the economy. Barry’s response to Boehner:
President Barack Obama will begin budget negotiations with congressional leaders Friday by calling for $1.6 trillion in additional tax revenue over the next decade, far more than Republicans are likely to accept and double the $800 billion discussed in talks with GOP leaders during the summer of 2011.
$1.6 trillion. Where will that come from, you ask? Well, everyone agrees that eliminating the Bush tax cuts for those making over $250,000, which is what everyone was arguing about during the debates, will only amount to $824 billion over ten years. While that’s certainly a lot of money, it’s only half of what Barry is looking for. Where’s the rest going to come from? Barry hasn’t told us that yet but I’ll be holding onto my wallet.
All of this is being discussed in an effort to avoid the upcoming “fiscal cliff.” The “cliff” refers to what our economy is set to figuratively fall off of on January 1 due to the expiration of all the Bush tax cuts, plus a crap-load of automatic spending cuts. In other words, taxes go up on everyone while spending goes down. You’ll hear the Dems argue that the Repubs are “holding America hostage for the sake of the rich.” You’ll hear some Repubs continue to say no to any new taxes, especially without significant entitlement reform, while some other Repubs will panic and say something like taxing the rich a little more won’t be the end of the America.
You know what gets lost in all of the “Bush tax cuts” argument? The reality that the “cuts” were to everyone’s taxes, and a whole bunch of people were removed from the tax rolls altogether. Fact is, our income tax system is more progressive now than it was thirty years ago. The problem, as we all know, isn’t our tax rates; it’s our spending problems. But hey, what do I know? I voted for the other guy.
So, given that America has re-elected Barry, and given that Barry and the Dems and their constituents want taxes raised on the wealthy, I say Congress should simply do nothing. “But that will cause our economy to go back into a recession and it will be terrible.” I say let it come. Our economy sucks. Unemployment sucks. Our debt and deficits suck. And you know what? The guy who was just re-elected doesn’t care. He has an agenda, and I say let him have it. You want to increase taxes on the wealthy? Screw that. I say raise taxes on everyone, and bring a whole bunch of people who voted for Barry back into the tax base. Is anyone really serious about spending cuts? Well, they’re coming up on January 1, 2013…$1 trillion of ’em.
As we speak, there are a surprisingly large number of people signing their names to petitions on the White House’s website, asking the feds to let their respective states secede from the union (the “surprising” part is that so many people are voluntarily giving the White House a reason to monitor their activities). The left will tell you they’re all just a bunch of bitter-clingers who hate Barry because he’s black. The reason the petitions were started is because many people see their country running down a path to insolvency and regular real unemployment being above 10% (it’s currently 14.6%), and they want off the train before it gets there. In other words, the country’s in distress and we don’t have a president who cares.
Despite what a majority of this country believes, money isn’t infinite, and companies aren’t charities. About 870,000 Ohio households just received proof of the former yesterday. Lots of people have been experiencing the latter for four years now. In other words, the people made their beds.