I have a list of four of five fundamental issues that will lead to the downfall of America as we know it. One of them is the massive amount of government spending. Our budget this year is over 3.7 trillion dollars. To put that in comparison, imagine if Washington DC decided that our government was so vital to the interests of the world that a direct head tax should be levied on every man, woman, and child of the planet. Each “citizen of the world” would have to mail a check for $621.50 in order to pay for this year’s budget. That’s $2,486 for a family of four!
Now our Government is admitting the existence of a fiscal cliff (it’s about time). They say that we will fall off of it on January 1st unless Congress and the President can figure out a budget. What is the cliff? If no budget deal is reached, everyone’s taxes will go up and every budget item will face an eight percent cut.
The fiscal cliff sounds scary. Those who pay taxes will have one more expenditure in their already tight budget. And for many, there are no more notches left in their belt (or no more wax left in their candle perhaps?). Those who rely on a government program will likely face some cuts in what they receive, tightening their budgets as well.
Both political parties claim that if even the slightest compromise on either the tax hike or the budget cuts happen, financial disaster will result. And so the war starts. Neither want what’s coming, but hopes of a compromise appear dim.
A decision will be made. This horse and pony show has happened once or twice every year for the last three. Here are the options on the table:
1) Tax hikes for the rich, minor budget cuts.
2) Tax hikes for the rich, no budget cuts.
3) Tax hikes for the rich, budget increases.
4) No tax hikes, minor or no budget cuts.
Does anyone seriously think the government will agree on the 8% cut? Almost every American has a government cow they are milking. Good luck convincing them to vote for the legislator who cuts their favorite program.
Remember my first statement. One of the fundamental issues destroying America is massive government spending. If we want to continue America as we know it, we need massive spending cuts. Eight percent won’t do it – 8% will cut our budget to a scary $3.4 trillion. (That’s 2009 levels! Head for the hills!)
As far as across the line tax increases, maybe we Americans need to feel how much our large government costs. If you think it is necessary to have a massive welfare and warfare state, then here is the price. Maybe it will result in more Americans counting the cost and contemplating if such a large government is healthy.
But even with the tax increases, next year’s deficit will be $641 billion. We will still have to borrow money. The $16 trillion debt will still continue to rise.
Should we fall off the fiscal cliff? We need a much larger cliff in order to end the current financial nightmare.