Barack Obama, who seemingly has remained in campaign mode since first entering public life, continues to insist House Republicans obey his command to hike tax rates on upper income earners. If Republicans do note cede to his demands, Obama is willing to let everyone’s taxes go up and to cut one trillion dollars from the budget, a disproportionate amount of which will come from defense.
He continues to make campaign appearances claiming that these higher tax rates are needed to lower the U.S. deficit and cut the national debt.
Nothing could be further from the truth.
The amount of revenue collected by the IRS as a result of such a tax rate increase would fund U.S. federal spending for less than nine days.
According to the latest data from the Congressional Budget Office, at current spending levels the federal government is borrowing forty six cents of every dollar it spends. Through the first two months of fiscal year 2013 the government is already almost $300 billion in debt.
Medicare, Social Security and interest on the debt are the biggest drivers of the debt. The true costs of Obamacare have yet to be revealed, but given the U.S. federal government’s track record it is safe to predict that it will be far more expensive than projected and finish in the red every year.
Collecting eight days’ worth of spending from upper level incomes will do nothing to affect the level of spending on any of these programs.
Additionally, Obama willfully ignores that at current tax rates, revenues are up by thirty billion dollars over last year.
Obama, his “progressive” political allies and the obedient lapdogs within the “progressive” Party Pravda continue to foster the notion that raising tax rates on the highest income earners, those who already pay forty percent of all income tax revenue, will be a panacea, the magical elixir needed to solve America’s fiscal woes.
They also continue to lay the blame for today’s deficits on former President George W. Bush. Bush’s highest deficit was $438 billion during his last year in office. Obama’s government is poised to post another $1 trillion deficit, which will mark the fifth straight year of $1 trillion or more deficits.
America’s current financial predicament is the result of wasteful “progressive” spending on big government socialist programs.
That is the reason.
America’s debt and deficit dilemmas can only be solved through reduced spending. If and when the United States falls off a fiscal cliff or receives another credit downgrade, it will be because of “progressives”, not Conservatives.
The conversation should be about how to cut spending, not about how to increase taxes.
Political Party or media employer notwithstanding, anyone who says differently is being intellectually dishonest.