Wednesday, December 26, 2012

Let's be clear

Sure, we can talk about revenue, both growth and rates, however make no mistake, just increasing rates without spending (entitlement) reform is throwing good money after bad.

Our PRESIDENT bears responsibility for the lack of leadership on the defining issue of our time.  There is no Senate budget, there is no willingness to tackle entitlement reform, there is just "tax increases on the rich".

He could have:

     Raised the retirement age.
     Pressured tort reform.
     Reformed the tax system.
          Split the difference with the Republicans regarding the upper rates.
          Reduced deductions.
          Broadened the base.

But he did not, he just demagogue.
The coming re recession is his.


Rep. Scott Rigell of Virginia is a lonely voice: He’s a House Republican conservative who argues that the government simply has to raise more revenue.

U.S. Rep. Scott Rigell, center In a week when Washington makes one, final effort to get to some kind of deficit-cutting deal to avoid the fiscal cliff, Mr. Rigell’s message stands out amid all the noise because of its startlingly unexpected nature.
Mr. Rigell, a businessman first elected to the House in 2010, says he has arrived at his position not by ideological calculation but by mathematical calculation; it represents what he calls in an interview a “data-driven conclusion.” And the data, he says, are simple:

The tax regime put in place by the George W. Bush tax cuts a dozen years ago has produced government revenue at an average of 16.9% of gross domestic product, through good times and bad, across the years since it was enacted. Only twice in those 12 years—in the relatively strong economic years of 2006 and 2007–has it produced revenues amounting to 18% or more of GDP.

Meanwhile, Mr. Rigell argues, even Republicans in Congress are unwilling to pass a budget that actually holds spending down to 17% or less of GDP. In sum, he says, Republicans have a position that locks in a permanent deficit by sticking with tax rates that will always produce less revenue than required for the government programs they are voting to support.

1 comment:

terry said...

Let's be REAL clear no one got punished in the last election. An approval rating for Congress of less than 10% and they mostly got back in. Elections meant nothing!
Everyone's taxes are going to go up and that is too bad, because 98% of the people did nothing wrong. Those that are recieving social security payed for that and medicare, they are to use a bad word to Republicans ENTITLED to those benefits. Starting two wars and passing a drug bill un paid for and Obama spending un paid for has caused a problem all Americans are going to have to pay.