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    The Fiscal Cliff - Omens Future Tax Hikes on Every American

    11/29/2012
    Democracy and Power 104: Future Debt Burden

    A government debt is a government claim against personal income and private property – an unpaid tax bill. – Hans F. Sennholz

    The Fiscal Cliff -  Omens Future Tax Hikes on Every American

    Deplorably, Congress and the President have intentionally created a “fiscal cliff.”  In 2011, Republicans and Democrats voted in favor of tax hikes for nearly every American as well as indiscriminate spending cuts on domestic and military programs. In order to stop major economic and program disruptions, rescinding legislation must be passed by January 1.  The “fiscal cliff” is totally irresponsible governance  and absolutely reprehensible.  [Read:  Reprehensible Governance - The Fiscal Cliff]  

    Why would our leaders intentionally create fiscal chaos?  Knowing they lacked the moral courage to make responsible long-term fiscal decisions, the President and Congress intentionally created a political disaster – increasing taxes and creating large spending cuts – to force themselves to make absolutely needed, responsible budget decisions.

    Today, with an imminent fiscal cliff, the President and Congress continue to grandstand in front of the American public while disregarding their moral duty to prudently budget for the future.  As recently stated by President,  "If Congress does nothing, every family in America will see their taxes automatically go up at the beginning of next year."  

    However, this immoral, political gamesmanship has a gigantic lesson for the American people.  The tax hikes and spending cuts that created the “fiscal cliff” represent a more realistic budget than what is being discussed by Democrats and Republicans.  Granted, the 'fiscal cliff' spending cuts and tax hikes were not seriously analyzed or debated, but the cuts and hikes are better reasoned than all of the pandering and obfuscation by the President and Congress.   Americans must realize if the federal government maintains the status quo – particularly Social Security, Medicare, Medicaid and ObamaCare -  America will be forced to increase taxes on every American family along with making severe spending cuts – substantially in-line with the dreaded “fiscal cliff.”

    Right now, President Obama and the Democrats are calling for “a little bit more from the wealthy.”  This is code for “let's keep the status quo,” which is absolutely unsustainable.  Taxing the wealthy will garner insufficient revenue, thus increasing the debt and prolonging debilitating programs.  Again, the drivers of debt – Social Security, Medicare, Medicaid, and ObamaCare -  will be maintained in their present form.  Ultimately, Obama and the Democrats are seeking a VAT tax, which will generate great revenues, impact everyone and retard economic growth.   Similar to all debt-burdened countries, growth will be stagnant, if that.

    Only substantial spending cuts and restructuring the federal government will prevent debilitating tax increases on Americans.  The most responsible solution has been presented by the Tea Party Budget.  Somehow, We the People must understand our debt crisis and force Congress and the President to cut the scope of government – substantially.


    More on cutting government spending:  

    The Right Way to Balance the Budget

    The West and the Tyranny of Public Debt

    2 comments
    Linda Quackenbush
    12/03/2012

    I think this government thinks it's too big to fail. We all know that this government is in the business of spending "our" money! It is quite evident with their huge unsustainable entitlement spending spree. All to entice a bunch of people who pay no taxes or to offer illegals free college and healthcare all for their vote. Hardworking Americans pay their fair share everyday in the form of payroll taxes and yet the people who don't pay anything are rewarded with "our" money in the form of governmental entitlement. The American dream is about to be our biggest nightmare...

    teda's picture
    Ted Abram
    12/04/2012

    All entitlement must converted to personal accounts, owned and control by each American. This will be especially beneficial to low income workers, a person account will allow them to save. Personal accounts will provide the freedom for everyone to make choices on how they want to spend, save and utilize their time and energy.

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