Tax Cuts and Expiration Dates
I am about to say something that will likely take a number of you by surprise. The Bush tax cuts slated to expire this year should be allowed to do so and the money should go towards deficit reduction. I know this may sound odd coming from someone like me, but I have always believed in fiscal responsibility and government living within its means. And as this nation runs up trillions of dollars of new debt it’s time for some tough medicine.
A quick look at federal outlays for 2010 is as follows…
- Defense and Security – $715 billion.
- Social Security – $708 billion.
- Medicaid/Medicare/CHIP – $753 billion.
- Other Social Safety Net – $482 billion.
- Interest on the Debt – $209 billion.
- The rest of government – $733 billion.
This nation will spend nearly $3.6 trillion in Fiscal year 2010. $2.2 trillion will come from taxes and the nation will have to borrow $1.4 trillion. And we haven’t even started to add in more stimulus dollars. That’s why the tax cuts should be allowed to expire and every dime should go towards deficit and debt reduction. By most credible estimates, leaving the tax cuts in place would cost this nation at least $700 billion that it would have to borrow. At the same time, this country really needs to but a freeze on spending, in fact it should go back to 2003 levels.
We are spending too much money and can’t afford to keep going down this road. And as much as some of you would like to say spending alone will get you there, sorry, that won’t cut it. You are not going to simply cut your way out of $3.6 trillion. Every credible economist says you are going to need tax increases and spending cuts to make this happen. We are too far down the rabbit hole for to do otherwise.
For those of you who don’t like this suggestion, all I ask is that you bring a credible solution to the table. Is that really too much to ask? We won’t turn this economy and nation around until we get this debt under control. And the only real way to do it, is the way lots of people do it in their daily households, cut your spending and pay off your debt.
