Raise Taxes?

The latest word from Sodom-on-the-Potomac is that we’re going to have to raise taxes in order to pay down the deficit. Well Golly Gee Whiz, who could’a have seen that coming!? Of course, it's not an absolute certainty, or at least not according to the media, with the easier option being “quantitative easing”, a fancy term for printing even more money (a dirty phrase that economists don’t like to use). The “print more (worthless) money” option would devalue the currency and of course the debt, but would likely trigger a cycle of hyperinflation like we’ve never seen before. Raising taxes yet again is the less traumatic course, though it may not be accepted by the taxpayers. "Congress only responds to financial crisis or some other external shock," says Bill Gale, co-director of the Tax Policy Center in Washington, D.C. "Nothing will be done in Obama's first term to substantially increase tax revenue." Perhaps not, but by running up a monster deficit in their so-far vain attempt to keep the economy growing, Team Obama has set the stage for a Democratic political disaster, and likely bankruptcy for the nation. Never mind the concerns about mortgaging the future, as they’ve already sold us down the river! Remember Mr. Obama’s promises about only raising taxes on the rich? Humm… perhaps if you’re not rich you’d best lay in some extra groceries while you’ve still got the purchasing power to do so…

Higher taxes are coming soon, and they’ll hurt I’m sure. By some educated guestimates, the tax burden on Americans will probably double before the end of the next decade. The only real question is: What form will these new taxes take, and just how bad will it be? Last year British Prime Minister Gordon Brown raised his country's top rate for income tax to 50% from 40%. This came shortly after the decision to borrow more than a trillion dollars, and will bring Britain’s public debt to something like 79% of their GDP by 2013. ‘Course there’s been the expected weeping and wailing from the uber-rich, but the majority of Brits don't seem to care all that much. I suspect they figure they’re already broke, so what’s a few trillion more or less? The Obama gang might try a similar strategy for managing the mountain of debt on this side of the Atlantic, with an increase the top tax rate from 35% to 45%. It’s supposed to be a smaller amount in lower brackets, but I’m retired remember, and surviving on a quite limited income, so even a 5% boost in my taxes is really gonna hurt!

The upper tax rate peaked at 94% in the final years of World War II, remained above 90% for most of the 1950s, and held at 70% during the 1970s. Ronald Reagan became the great tax buster by cutting the top bracket to 28%. Even with that, liberals are happy to point out that the national debt exploded with the Reagan administration, which it did, but they conveniently forget to mention that that burst of spending not only ended the Cold War without nukes flying about, it also provided the military might that put an end to Iraq’s “Mother of all Wars” in just three days. Mr. Obama on the other hand has done more damage to our future economy than President Reagan ever thought of in his worst nightmares! Now, adding insult to injury, China, who holds a LOT of American treasury notes, has started unloading them on the suckers. That does not bode well for the American economy.

The expert economists are telling us they have a crystal ball and it says without more taxes things are going to be really bad. Yeah, just as not so long ago they told us it was just a small market correction and no big deal... and then the bottom dropped out. It seems to me that economists are nothing more that soothsayers with lots to talk about and nothing to say but opinion. Some of the amateur suggestions to solve the problem are interesting though. One thought being: “Here's a concept, CUT THE BUDGET BY 25% ACROSS THE BOARD! Do we really need all the city, county, state and federal employees? Obviously, the answer is NO! With all the talent they have accumulated on the government tit, they should be prime candidates to open various FOR PROFIT businesses. Gee, that would solve the unemployment issue as well. WOW, it seems so simple perhaps Washington D.C. should give it a go.” Another says: “I prefer that we simply quit spending more than we are bringing in and learn to live within our means. That is what the government tells us peons to do.”

One comment I particularly liked was: ” Here's a solution. Just raise taxes on the idiots who voted for Barry. In fact, tax them at 100% of their income. That ought to make them happy.” ‘Kay, but a lot of those folks are seriously regretting falling for Barry’s gift of gab… Another wit suggested: “Here's another idea: CUT ALL GOVERNMENTAL ADMINISTRATIVE SALARIES. Cut the Congress, Senate, Supreme Court etc. to 100,000 a man a year. PERIOD. Let them pay into their health care, like we do. CLOSE DOWN their entitlement for life after leaving office. We fund these guys at FULL SALARY for the rest of their lives, even after they've been voted out of office!!! It has to start in Washington. The little guy has already taken as MUCH of a beating as he can take. It's time to PUT up in DC or SHUT UP." Will they do it?” Probably not.

As to Mr. O’s pet money spending project… "I DONT want the government running our health care system, they can’t even run the country without bankrupting us! What do they not understand about "cut spending?"