Where are the Jobs?
It really doesn't matter, does it?
There is no way to "balance" the budget with spending cuts and tax increases. The sum of both would have to equal 42% of the current spending and that won't and can't happen.
What can happen is tax increases now, promised spending cuts later. The effect? No balanced budget and increasing debt as far as the eye can see.
RK-You are correct, there is no way to immediately balance the budget.
ALL the plans presented up to this point, including the House passed Ryan plan and the proposed 'Cut, Cap and Balance' plan, have very little in the way of immediate cuts. Most of the spending cuts are slated for years 7,8,9 & 10 of the 10 year budget.
The same goes for the revenue increases which would be the result of restructuring the tax code, which is a HUGE undertaking and would not happen before the next election.
The net result of any deal would be to raise the debt ceiling so that we as a nation will be good for the debt that HAS ALREADY BEEN INCURRED. This debt is the result of the phenomenal amount of Unemployment benefits, Medicaid payments and Food stamp expenditures which were paid to the States and made up the bulk of spending in the stimulus package.
All that social spending is caused by the 7-8 million workers who have been unemployed since 2007-2008 and who have since paid little or no income taxes, and the additional 10-15 million people who have just part time work, or have been forced back into the underground (cash) economy and who also pay little or no income taxes at the present.
All these under employed and unemployed still DO pay; local (property) taxes and sales taxes and do still need to eat, clothe their children and pay the mortgage or rent, despite seeing their effective income cut in half in just 2-3 years. I would think we could empathize with them as we appraisers as a group have realized similar loss of employment and income and are struggling along with them.
The increase in social spending caused by the recession is what these programs were designed to do; provide a safety net for our fellow citizens who had heretofore been working and tax paying contributors to the general welfare of the country and now find themselves in dire straits due to no fault of their own.
The other part of the current debt that no one seems to mention but everyone knows is there is; the huge debt incurred by 10 years of war and all the defense and foreign aid spending (waste and abuse?) that went along with it, and the Medicare drug plan passed by the previous administration which many of the current deficit hawks supported and voted for so as not to embarrass their parties President, even though they claimed to be philosophically opposed to it.
A balanced approach; one which cuts spending and increases revenues is what is needed, I won't hold my breath waiting though.
If the Republicans as a whole had the balls that the Tea party caucus appears to have they would plainly state;
We need to stop funding; Unemployment insurance, Medacaid, Medicare, Food stamps and ALL social spending so that we can continue to subsidize our beloved "Job Creators" who despite the continuation of their tax cuts which were initiated in 2001 and continued last December, have yet to create sh*t.
From the Washington Post
"The Facts
President Bush instituted two big tax cuts, one in 2001 and another in 2003. The first was implemented amid rosy predictions of a
10-year, $5.6 trillion surplus; the second was enacted after the economy appeared to stumble after the Sept. 11, 2001, attacks."
Where are the all the jobs oh ye wise and tax payer subsidized "Job Creators" ? 10 Years with these tax cuts for the RICH in place, and again; Where are the Jobs?
Class warfare? you bet your arse.
Get back to work Congress, do the right thing and if you can't do that at least let the people know what 'spending' you intend to cut so we can tell;
"Which side are you on boys, which side are you on."
