Wednesday, February 13, 2013

We Do Have a Revenue Problem!

We Do Have a Revenue Problem!
Al Ritter
Of course our biggest problem IS a spending problem, but Obama will never admit that! Obama is correct though when he says that they are lacking revenue. Think of it logically and in an unbiased view and you will see what I mean.
The median income of America has dropped substantially in the last four years, and subsequently the same income drop has caused the tax income to drop. There is less money coming in to the coffers.
Now the discussion heads to…….”who was to blame?” Who really cares who was to blame at this point even though substantial evidence exists to support the idea that the Democrats are to blame for the bursting of the real estate bubble?
The fact remains now how to deal with the shortfall of taxes caused by them. Blame is one thing but solutions are something entirely different.
The economic principles practiced during the Reagan years became the corner stone of the Tea Party war cry. Art Laffer developed the “Laffer Curve” as a young economist that worked for Ronald Reagan. Ronald Reagan raised taxes, no question, but in doing so his economic team discovered quite by mistake that if the percentage of taxation was lowered (within reason) the money coming in actually increased. Kennedy had also discovered the same thing 20 years prior, but now finally Laffer had discovered the formula.
If you delve into his theory, you will find that the theory has a window of taxation percentage that is rather large. I’m not saying that Obama is entitled to take a higher percentage of our income for taxes, but I am saying that maybe a tightening of the tax loopholes should be left on the table for bargaining with, so that eventually we can lower income tax percentages.
We know that Obama’s aim in “taxing the rich” is merely class warfare, and that instituting those taxes on the rich at even 100% of their income would only pay for 8 days of government operation. These are the facts plain and simple, and yet he is fighting with this tooth and nail to force a wedge in between the classes.
What the house leadership needs to do is offer up a closing of loopholes, and maybe a small increase of taxes on those who make over $1 million a year or $1.5 million as a couple.
This could be the bargaining chip we need to make AFTER the sequestration kicks in to make Obama submit to massive policy cuts to entitlement programs that he has increased since coming into office.
To escape this horrible economic blunder started by the Democratic congress under George Bush, (there I said it) we need to play a chess game not a constantly reinforced “Mexican standoff” that leads to constant dead ends. Obama has caused this rift between sides, think back to when it started!
The art of politics is one of give and take between sides not that of constant stonewalling. We need to work together to return our country to some sort of sanity.
Of all the people to be the most upset in this debacle, it SHOULD be congress! They are the ones being bypassed through executive actions. They are being denied (both Republican and Democrat) their voice in the legislature, by an egotistical tyrant who only serves himself at the cost of others. Just look at the way he treats supposed friends in his own party…….they are merely a vehicle to get what he wants.
The faster they see him for what he is rather than to just blindly follow like sheep the faster we can get our country back!........Ok now all my Tea Party friends can string me up!


steve c said...

I thought our biggest problems were unemployment, ridiculous spending and a runaway deficit, only to find out from BO last night that the big problems are the minimum wage, gun control and allowing gay kids in the boy scouts.

Kevin Bryant said...

Got Rope....Ready To Use It!!!!!! - The problem is Federal Government & The Tax Code itself. I know we will differ on this but how many times have we disagreed before? More than a few. Abolish the tax code. Abolish the idea of a "fair tax". Some of the things the federal government needs to keep their hands out of and leave totally to the states: Medicare, Medicaid, Disability (except for those who became disabled while in the employment of the federal government), Road building and maintenance (excluding interstates and their on/off ramps), EPA... and another whole list of departments and programs that are duplicated at both the federal AND state levels. Stop taxing corporations for all net profits below 10%. 10% and above, all companies will pay a flat 10% fed and 10% state tax (or lower depending on the will of the state). Abolish all hidden taxes such as gas tax, 911 tax and all 120+ other taxes at the federal & state levels. EVERYONE earning a paycheck regardless of their financial status pays a flat tax which 5% goes directly to social security and 3% goes directly to paying down the debt and deficit. Those below $35K pay 9%, Those between $35K and $45K pay 10%, between $45K & $60K pay 12%, $60K through $75K pay 15%, $75K - $90K pay 18%, $90K - $100K pay 20% and above $100K pay 23%. Remember now that includes the 5% to FICA and 3% towards debt reduction. Since medicare and medicaid and other former federal departments would belong solely to the states, the states could set the own tax limits up to 15% on everyone earning a paycheck. Indirect pay such as stocks and other corporate "perks" don't get a pass. Each "perk" gets taxed at the individual tax rate and their values are set at the value of the stock, corporate paid time share - club membership - company car.... season tickets to the ballet..... whatever it is.... if it's part of your employment contract, it gets taxed. The states and the federal government would know each year what they can expect to receive and what they have to spend. Also cap all city, county taxes, including sales tax at 1%. The ONLY monitaryincome that would not be allowed to be taxed would be social security, disability, ROTH investment/retirement plans and pensions earned by those that put their lives in danger for our protection every day (police, fire, military, border patrol.......).

Of course you know this could never happen even though it would filter more money into the state and federal governments. They would still cry they don't have enough to spend.

republican patriot said...

LOL!.........Kevin I was talking about things that actually have a chance of passing!

barb p said...

We need to try something 'new'. What has been happening has proven to the
wrong approach. We are in trouble and need desperate actions...may not
be the perfect solution...but it may be the start we need to take!

bud s said...


Q.D.T. said...

Well said, My Friend!