Thread: Spooky Obama
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Re: Spooky Obama
Old 07-22-2011, 04:20 PM   #6
Professor S
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Default Re: Spooky Obama

Quote:
Originally Posted by manasecret View Post
I can not help wonder -- what are the Republicans in the House thinking? They all seem perfectly fine with pushing the U.S. into default.

Why do I say that? Because as part of the legislation they passed, the cut, cap, and balance one (thank you Harvard comma), an amendment to the Constitution must be passed on a deeply political and divided issue (i.e. spending). They can't possibly think that had any chance to pass, even before the Senate and President outright said they wouldn't pass it. So it seems to me they are ok with steering the U.S. into default over political bluster that most Americans don't want -- the large majority want compromise that includes both cutting spending and raising taxes.

So in conclusion, wtf is wrong with these guys in the House?
Just to note: Cut, Cap, and Balance does not require implementation BEFORE the default period. That is impossible because 2/3 of the states have to ratify the amendment. Its just a part of the process.

The real problem right now is that neither side trusts the other. Example: Obama's plan would cut the budget by billions, but not cut any actual spending. How is that possible? Our budget is going to grow each year going forward, and Obama's plan only reduces the rate that it increases. There are no real spending cuts. Also, Obama's plan would raise taxes immediately, but promise to cut budgets in the future. This was tried once before at the beginning of Reagan's term. The taxes were real, the cuts were never realized. Reagan believed that agreeing to that "compromise" was one of the biggest mistakes of his career.

Also, I think the Republicans are being unreasonable, and stupid, by publicly stating that no tax increases are on the table regardless of cuts. I'm for removing loopholes, but lowering the overall rate to help encourage real growth.

The truth is the solution is easier than anyone really thinks:

1) Install a progressive flat tax: All income up to $38,000 pays no federal income taxes. Every dollar above that number is taxed at 25%. This way everyone can plan accordingly, and in the end the rich pay more in taxes simply because a far higher percentage of their income is above the $38k threshold. Also, no one is punished for succeeding. NO LOOPHOLES.

2) Eliminate the corporate tax. Corporations do not pay taxes. People do (investors, employees, or customers) so let them pay taxes with their income and not provide corporate loopholes so they can hide their income.

3) Pass a balanced budget amendment.
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Last edited by Professor S : 07-22-2011 at 04:45 PM.
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