Balancing the budget is not difficult at all. What makes it difficult is attempting to do it on the bottom 80% that does not command most of the income.
Bottom line, we need to raise taxes on higher incomes. When one examines the obscenity that is the income distribution in this country, it makes it evident why we are in the state we are in.
Moreover, while many would like to claim that taxing the wealthy will kill the economy that is a factually and intellectually dishonest position. All tax dollars are spent mostly in the US. Investment by the wealthy of dollars not paid in taxes is being invested elsewhere. This is seen in a stock market soaring as our employment remains stagnant as the wealthy invest their dollar anywhere but America.
The fallacy that taxing the wealthy appropriately damages the economy was disproved many times since the Depression. Most recently the tax rates instituted by George H. Bush/Bill Clinton showed that an economy is most robust when the Federal Budget is balanced with taxation that reflect the actual services the citizens at large desire of their government.
Because taxes are all spent and because a robust economy is determined by the speed with which monies circulate even the more taxed can benefit form said increased taxation based on increased economic activity.
We must as a society fight the war on the middle class and have the wealthy give back to a country that has afforded them their financial success which is generally not from work but an aberration of how capital is taxed and distributed.
My Book: As I See It: Class Warfare The Only Resort To Right Wing Doom
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GOP Budget-Cutting Plan Marks Political Gamble
DAVID ESPO 02/ 6/11 08:14 PM
WASHINGTON — The Republican drive to cut spending, which begins in earnest this week, marks a political gamble that the public’s hunger for smaller government will trump its appetite for benefits, subsidies and other federal support.
Rep. Tom Price, R-Ga., calls it the "$64,000 question," and then promptly answers it.
"People will be supportive of almost any decreases in spending as long as they believe they’re done in an open, equitable and fair manner," said Price, a member of the party leadership.
Democrats, already eyeing the 2012 elections, sound disbelieving.
"I’m not sure which country they’re speaking to," said Rep. Debbie Wasserman Schultz, D-Fla. "How they think that slashing, dramatically slashing important programs is going to help jump start the economy is beyond me."
The polls make clear the potential risks for both sides.
In an Associated Press-CNBC survey last November, shortly after Republicans scored large gains in the midterm elections, 87 percent of those polled said record federal deficits were likely to cause a major economic crisis over the next decade. Also, 85 percent said the cost of financing the federal debt would cause problems for their children or grandchildren.
Yet only 47 percent said cutting spending should be a higher priority than increasing it on education, health care and alternative energy development, which was backed by 46 percent.
In a CNN survey last month, those questioned said by an 81-18 margin that is was more important to prevent significant cuts to Medicare than to reduce the deficit. For Social Security, the split was 78-21.
