Let’s discuss how to pay a debt.
- You earn revenue – that’s money coming in.
- You send your debtor a check for what you owe.
- Repeat steps 1 and 2 until debt is paid.
See how easy that is?
Now, here’s a little tip to make it even easier: Don’t quit your job while still trying to pay your debt. In other words, don’t lower your revenue, because if you lower your revenue, you will have a harder time meeting all of your obligations, including your debt repayment.
Let’s move this out to the government:
- Receive taxes.
- Send checks to debtors.
- Repeat steps 1 and 2 until all debts are paid.
To pay the debt off faster, cut spending. To not pay it off at all, cut revenue.
That’s what the Republicans want to do, they want to cut our revenue when we can least afford to do so. They are holding the debt ceiling hostage because they don’t want to raise the taxes on the richest people in our nation from 35% to 39.6%. This isn’t going to raise your taxes or even my taxes. I’ve all ready discussed in an earlier post what will happen if we default.
Tomorrow, I’m going to post the tax rates over the past ten years. Remember, these aren’t rates on your GROSS salary, they’re on your NET.