Originally Posted by txz4
we have a spending problem.... simple as that. We push the wellfare state, we want everyone to live the American dream (white picket fence) and then say, "oh it wasnt our fault all of these people defaulted on loans they couldnt afford (but were allowed to be given by legislation and more over using "private firms" to further push this agenda)
No, we have in income problem. There isn't enough revenue coming in.
Imagine if you and your wife are both working, you both bring home $75k a year each. Your total yearly income would be $150k. Now when your wife loses her job, you'll be down to $75k per year. Now, do you just tighten the belt and cut your expenses by 50%, or does your wife go out and get another job? You still have the same mortgage you did when you were pulling in $150k, do you move? You have the same cars, do you sell them? No, you get another job and keep on bringing in revenue.
Currently the Bush era tax cut are some of the largest hits to our budget in the US. If we make the tax cuts permanent it's like a $3 trillion hit to our budget over 10 years. Maybe we need to stop giving out tax breaks to those that do not have to have them right now. As one report I read stated, the Bush Era Tax Cuts cost $400 Billion just in servicing the debt it created. And the Tax cuts themselves have accounted for almost 50% of our national debt over the past 10 years.
If you recall, the Bush era tax cuts came as a response to the surplus that was left over after 8 years of President Clinton.
More info can be found here:
Bush Era Tax Cuts