Top Of My Head

Thoughts on everything from Politics to Video Games

Tag: revenue

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.

 

Obama’s Big Mistake

By offering cuts to Social Security and Medicare in exchange for a rise in tax revenues, President Obama is making a huge mistake.  There are a lot of people out there who will be relying on both Social Security and Medicare for their retirement needs.  We will have to deal with them later and that is a mistake.

As far as I’m concern, any spending cuts – which Obama has given in to plenty – that do not come with a raise in taxes for the wealthy are unacceptable.  We’re going to leave those who can ill afford it vulnerable and we’re already rewarding those who caused this mess in the first place.  It’s time to hit the fancy bankers and CEOs who have laid off their fellow Americans in the pocketbook.  If we tax the hell out of them, maybe they’ll start hiring to avoid paying taxes.

We, also, need to cut every subsidy for nearly every corporation – especially oil.  But, that’s a discussion for another time.

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