The political rhetoric that the United States and Democratic Party presents is unacceptable. President Obama stated in recent debt/budget talks that the rich can afford to pay a little more and that the rich should pay their “fair share.”
Statements such as these are completely absurd considering that 51 percent of the American people pay no federal income taxes whatsoever according to the CBPP. This means that when workers examine their pay stubs at the end of their pay period, those who find money withheld for federal income taxes are in the minority by definition.
The president and his fellow Democrats in Congress and the media state that their goal is to only raise taxes on millionaires and billionaires. They fail to mention that their plans would affect anyone making over 250,000 dollars a year.
Someone making 250,000 dollars per annum is far from a millionaire or billionaire. Most of these people are small business owners who report their business revenue on their personal taxes.
The small business owner is the backbone of our economy. These are your small “mom and pop” shops with less than nine employees that keep the American way of life going. Raising taxes on these individuals will do nothing but further slow our declining economy and lead to even greater unemployment.
Additionally, the debate on raising the debt ceiling has been made far too political by the president. Failing to raise the debt ceiling will not lead to immediate default by the federal government provided that the Treasury directs revenues to paying debt service.
With the federal government currently borrowing 43 cents of every dollar it spends, the debate should be about reducing spending and cutting government programs, not increasing spending. The U.S. House of Representatives should take the opportunity during this debate to get real, substantial cuts to our government and the various entitlement programs in place today.
It is important to note that the Democrats do not share responsibility for this almost unimaginable amount of debt. A Republican president and a Republican Congress spent billions on new spending and entitlement programs such as Medicare part D during the previous administration.
Despite the mistakes of the previous administration, the current president fails to grasp the basic tenets of economic theories that have lead our nation to be the greatest of all. His vision of a socialist, European-style economy will do nothing but cause further economic decline, poverty, and unemployment.
The fastest way to turn this anemic economic situation we find ourselves in is to cut the top marginal tax rate, reduce capital gains taxes — possibly taking them down to zero — and to cut the tax rates on repatriated profits.
A further step that would lead to significant economic growth is the repeal of the 16th Amendment to the Constitution allowing for the collection of taxes on personal income and replace it with House Bill 25, the Fair Tax. This would eliminate the entire current tax code and replace it with a consumption-based tax.
By doing this, investors will once again invest their money into various projects, and the wheels that drive our economy will start to turn again. People will once again have jobs and revenue will pour into the Treasury.
This policy is proven to work, for Kennedy did it in the 60s, Regan in the 80s and Bush succeeded in the early part of our current decade. With over 14 million unemployed people in the United States right now, it is critical to implement policies promoting economic growth and prosperity. President Regan said it best when he said, “A rising tide lifts all boats.” This is what our country desperately needs, and it needs it now.