Be prepared for higher taxes! As of today, November 28th, the Obama Administration has proposed raising taxes by $1.6 trillion over the next decade. But, he is proposing only $400 billion in spending cuts. Moreover, he wants $50 billion in stimulus spending.
Let’s take the stimulus spending first. Stimulus money is supposed to help the nation’s economy recover and promote economic growth. So far neither goal has been achieved. Instead, the nation has been plunged into historic record debt – over $5 trillion in four years. If trillions of dollars did not achieve a recovery, it makes no sense that $50 billion would have any impact.
If you earn less than $250,000 and expect not to pay higher taxes, then you are ignorant of previous reports issued by the Congressional Budget Office (CBO). The CBO has made it clear that taxing the rich as much as Obama wants cannot cover his tax bill. Heavier taxes will fall on the middle class despite the false promise of Obama. Expect it!
Beginning with the Bowles-Simpson Commission which was tasked with coming up with a solution to the debt and deficit problem by Obama and whose recommendations he rejected, the solution to the debt problem is make significant spending cuts. $400 billion dollars in cuts are not significant when you consider that Obama has increased the debt by $5 trillion dollars.
Let me put it into simple terms! If you had a debt of $5,000 and only paid $400 to cut the debt down, then you are left with $4,600 of debt that still needs to be paid off. It represents only an 8% payment. This numbers don’t even include the interest on all of our debt. Such a low payment means that the debt can quickly climb back up because of the interest and the Obama Administration spending spree.
One more thing, Treasury Secretary Geithner has called for permanently eliminating the debt ceiling. The debt ceiling is the only protection US taxpayers have to limit government spending and out of control taxes. How do you think Democrats and liberals would react if Obama was a Republican and he proposed no debt ceiling?
There will be a time when a Republican will become president again. If there is no debt ceiling, then they could go on a spending spree. Debt ceilings hold both parties in check with spending!