A first step, but it’s nice to see at least a couple of them facing down their “owners” like Grover Norquist:
“GOP shifting on anti-tax policy
In light of the nation’s deficit, some Republicans are calling for an end to individual and corporate tax deductions.”
I think most of us – at least those who pay attention to economics, know that we are in real trouble in terms of the basic financing of our Federal Government. After all the BS dies down, the problems remain – and the BS does nothing to solve them all.
I have take a very careful look at the math involved and there is no way – I repeat, no possible way, to get anywhere near fiscal solvency without more tax revenue. That means raising taxes or cutting deductions or rolling back cuts…whatever name you want to give it is fine, but without some real action there is no hope at all
Although some point fingers at the Obama Budgets (2010 and 2011), these really are only slightly different, if at all, than the Bush Budget which went before.
As an example, I looked at the 2009 Fed. Budget submitted by Bush.
The basics are this:
Spending 3.1 Trillion
Income (projected) 3.7 Trillion
Deficit 400 Billion…….
BUT, the key here is that this budget was a big lie – strong words, but here is why….
1. The “projected” revenues did not come in! The revenue was WAY under that, 2.2 Trillion. This made the Deficit 900 Billion.
2. As with former years, Bush refused to put the money for the 2 wars into the budget! Instead, he requested that Congress provide more emergency money – total somewhere around 100+ Billion…..
TRUE deficit 2009 = One Trillion Dollars…….
There is no way possible that a trillion dollars a year can be made up by “cutting spending”. It is much more possible that the rapture will occur next week. You might be able to cut 100 Billion…..and work your way up to 200 or 300, especially as the TARP is paid back and some tax revenues rise as the recessions wanes. But these 3 TRILLION dollar budgets were built up on the crazy idea that the housing bubble (and all the related economic activity, and therefore taxes) would continue. They didn’t and they won’t.
So, now we have a choice. Cut where we can and roll back the tax cuts – end some programs like the tax credits for big oil – end the ethanol thing (that just failed!), reform health care (also breaking the government, even the regular budget)…..
Or, default and continued destruction of our civil society. It seems like an easy choice, but yet these pols will not do anything! More accurately, they are doing exactly what we (their constituents) want them to do, which is stand fast against so-called “tax increases”…..
If and when things get worse this time, folks, please look in the mirror….again!