Unfortunately, Congress operates the same way. Members of the GOP Caucus - most of whom are bright, overachieving guys - know that we have to raise massive revenue or eliminate Social Security and Medicare, which is not going to happen. The problem is, they saw what happened when George HW Bush broke his promise. They saw what happened to the Democrats after the budget balancing 1993 Budget Bill. They have all sworn off tax hikes. Self preservation means opposing any and all tax hikes if you are a 2010 Republican officeholder.
They complain about a $1.4T deficit, but they know that Bush handed Obama $1.3T of annual red ink that was rapidly growing. Objectively, from a fiscally conservative standpoint, the administration has done a good job on the budget. Had Bushes trajectory continued, we'd be >$2.6T in the soup this year.
So - we have a huge structural fiscal imbalance. That's a fact. The Debt Commission will report it's recommendations in November or December. Will Congress have the courage to do the right thing? Can we cut discretionary spending, gradually raise the entitlement ages, and significantly raise taxes in a manner that causes the least drag on our economy? We'll have to - the world's future depends on it. We cannot lead the world if we are broke and can't borrow money and that is the path that we are on. If the system is broken, we will arrive at that sorry destination sooner rather than later.
2 comments:
I have no dirty little secret. I also know that you are wrong like always!
Priority number one is to stop creating new entitlement spending and spewing huge amounts of wasted stimulus money which only creates temporary jobs that are doing nothing to fix this economy that your boy and his cronies are just making worse.
"Objectively, from a fiscally conservative standpoint, the administration has done a good job on the budget." A statement like this is why you have absolutely no credibility. For once why can't you admit the obvious factual truth, that Barry doesn't have a clue as to how to fix this economy and is only burying this nation under a debt load that we might never get out from?
It is time to stop blaming this on Bush and admit that your boy is F---ing everything up. With the way the libs are spending like drunken sailors it is projected that the deficit as a percentage of GDP will be 90% by 2020. For you to make a statement that Barry was handed a 1.3T annual budget deficit is disengenous. What did you take one month and annualize it?
The deficit for April alone was a whopping record of 83 billion alone and that was considered a good month by Barry.
The other big contributer to the record deficit is the diminshed revenues. Your kind can never get it through your dense heads that when you significantly raise taxes you further hamper the economy. A significant tax increase at this time will plunge this nation back into recession and will move unemployment well over 10%.
Pay attention and look what Germany and the UK are doing. They are significantly cutting spending knowing that if they raise taxes it will destroy any chance Europe has of getting out of this. Once the economy is healthy then you can start considering smaller phased tax increases. Not now. That would be suicidal.
Mark - sometimes you seem so bright and other times, not so much. How do I state that GWB handed President Obama a $1.3T deficit? Because that was the FY2009 budget that he handed him. No extrapolation was necessary.
So - once you figure out the baseline, how can you criticize the current administration for having a deficit only 8% higher than was inherited during the worst economy in 70 years? Intellectually, you can't. Sure, a partisan hack will complain about anything, but an objective observer will give credit where it is due.
The fact is, the deficit peaked at $1.7T and has subsequently come down.
I completely understand that taxation levels - as well as spending levels - effect the economy. Duh. I said as much and thats why the hikes are proposed to be phased in over several years.
Mark - show me how you'll balance the budget without raising taxes. Put up or shut up.
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