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