Balanced? Okay Democrats, Put Up Or Shut Up
Doing The Right Thing Isn't Waging Class Warfare
The other day I wrote about Harry Reid and his idea of a "balanced approach" being raising taxes on the wealthy, who are the job producers in this nation, hitting big oil which is being stifled from drilling our own reserves and axing the tax credit on corporate jets. Those are the same jets that Obama addressed in his stimulus plan when the credit was given. Of course, the main stream media seems to omit the facts and helps this administration continue to wage class warfare as the solution to the nation's problems. It isn't.
Obama, during the debt ceiling negotiations, got stuck on taxes. The fancy words for raising taxes on the people who actually pay those taxes are "revenue increases" or, if you like, "revenue enhancements." What S&P was primarily concerned about when they downgraded the nation's credit rating was the excessive spending and debt accumulation that has occurred during the past two plus years. Instead of actually decreasing spending that causes the national debt to be lowered, the projections on this latest smoke and mirrors act, assuming a perfect scenario, only has a 10 year projection of increasing the national debt by 7 trillion dollars instead of 10 trillion. How about watching this video before we go on.
If You Don't Get It, You Never Will
The fact is that the Democrat's fiscal policy of what a "balanced approach" means is higher taxes on high earners, business income and capital gains. All three of those categories are known to stifle economic growth. In these hard economic times, why are they even considering stifling growth rather than promoting it? During the debates it was apparent that Obama and the Dems saw the solution as raising taxes. No rationale was ever offered because there isn't one. In the absence of rational thinking it becomes apparent that the objective of all those sound bites we kept hearing was waging class warfare is their objective. Our nation doesn't need that sort of nonsense either.
Unfortunately, the raising of our taxes equates to them being able to spend even more of our money rather than less. Look at the dismal spending cuts they just instituted in order to raise the debt ceiling so the spending can contiunue.
Ever wonder why cats like catnip? The same reason that a progressive likes to wage class warfare. Has class warfare ever promoted any growth in an economy? How many jobs has it created other than a community organizer job? If we're going to reform the nation's fiscal policy to promote growth, which is a mandatory element, it needs to be coupled with the other two keys - spending cuts/entitlement reform and higher taxes.
Lets mention the Bush tax cuts since they keep getting mentioned here and there anyway. They were extended by a Democratic majority in both Houses and Obama for a reason. It isn't in anyone's best interest to raise taxes during a recession. We're still in one in case you have failed to notice. What were they worth to high earners? The figure is $700 billion. What were they worth to everyone else? This will bring out the naysayers but facts are facts. They were worth $2.8 trillion big ones. See the difference between the same cuts being applied? Are you willing to give back your part of the $2.8 trillion? Of course you aren't. They'll waste that too.
The fact is that even if you raise the tax rates on high earners there still won't be enough money produced to make a dent in all of Obama's proposed spending. There aren't enough rich people in this nation to make up that deficit. So we raise all those "revenue enhancers" and the opposite effect occurs than what needs to be done. You stifle growth and cause the people who are the risk takers not to take the risk. Why do you think all the banks and big corporations are sitting on trillions of dollars? They don't want to take the risk when looking out at all the uncertainty this administration has produced in less than three years. I can't say that I fault them because it isn't primarily their money they are dealing with but other people's money.
Now understand something and file it away. Economics has absolutely nothing to do with class warfare. Obama knows, self-admittedly, that he knows nothing about economics but he is a master at waging class warfare. After all, his main claim to fame was being a community organizer in Chicago. Lets see if the Democrats are really serious about raising taxes. You know, the old put your money where your mouth is time. If they aren't, my point here will be proven.
Lets look at a some broad based approaches such as a regressive tax increase such as the Value Added Tax, a FAIR tax system where "everybody" is taxed rather than 51% of wage earners paying nothing, or sock it to everyone with a large payroll tax increase. Either reform the tax system where it is equitable across the board or I know you aren't serious at all and are just intent on waging class warfare in an attempt to get reelected. I think people are catching onto the fact that a lot of this is about them getting reelected rather than the welfare of the American people and our pocketbooks.