Top Of My Head

Thoughts on everything from Politics to Video Games

Category: Debt Ceiling

The Republican Plan

Rush Limbaugh – that moronic flab of hot air – says that the Republicans can’t compromise. Well, that’s just great. The Republicans should play to their fringe and not to common sense. Around half of our deficit problem is because of the tax cuts in 2001 and 2003. A quarter is because of two wars that we cannot afford. The government, despite my own comparison, cannot run like our household budgets. The government’s job to to provide for the general welfare of its people (see US Constitution) and if people aren’t going to eat because there aren’t any jobs, let the government spend the money.

Yes, we need to cut spending, but we need to raise taxes on the upper echelon of this country. If tax cuts create jobs, like the right wing keeps claiming, then where are they? The US Corporations are paying less in taxes now then since the 50’s (which, by the way, have a great economy). So, where are the jobs?

Limbaugh claims that the GOP won’t have a backbone if they compromise, well, Limbaugh wouldn’t know a backbone if it hit him in the face. None of these guys would. Having a backbone, manning up, this takes courage and it is easy for them not to compromise if that’s what the tea party wants. They’re bending to someone else’s will.

What shows a backbone is standing up for that which is right against those who disagree. If the Republicans said, look Obama has compromised on spending, so we’re going to give a little revenue – that would show some courage. Right now, they’re just thinking about their jobs and not the country.

We’ve been here before

It is amazing to me how history continues to repeat.  We – the collective we – fail to learn from the past.  Here we are, on the brink of defaulting on our loans, and the Republicans on standing on ideology instead of doing what is right for the country.  We may not be able to spend our way out of debt and we cannot tax cut our way out of debt.  However; the Republicans are too scared of making Obama look good and going against the Tea Partiers to do what is the right thing to do.

When we default next week, because the Republicans cannot and would not accept a very reasonable offer, don’t come crying to me.

Ironically, these “Republicans” claim to revere Ronald Reagan, yet Reagan raised the debt ceiling 18 times.  Despite the spin the right-wing talking heads want to put on it, he still – while saying he didn’t want to do so – raised taxes.

Economics

Let’s discuss how to pay a debt.

  1. You earn revenue – that’s money coming in.
  2. You send your debtor a check for what you owe.
  3. 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:

  1. Receive taxes.
  2. Send checks to debtors.
  3. 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.

 

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