Congress recently passed a bill to stop the ‘fiscal cliff’, which would have triggered automatic spending cuts and tax increases.
Unfortunately, the bill is extremely short on spending cuts ($15 billion) and long on tax increases (over 600 billion- a 40:1 ratio), and that assumes the proposed spending cuts actually happen. Democrats have, in the past, happily raised taxes while refusing to make real cuts in spending. President Reagan made a deal with then Speaker Tip O’Neill that would have cut spending by $3 for every $1 of tax increases. We’re still waiting for those cuts, 30 years later.
I’m very disappointed by the weak ‘leadership’ we’re seeing from John Boehner & Mitch McConnell, and with Sen. Paul Ryan and other ‘conservatives’ for supporting this bill. America needs to massively cut its spending, across the board. Yes, there can be cuts in defense. We need to slash foreign aid, completely get out of the United Nations, eliminate the Department of Energy & the Department of Education, eliminate all of Obama’s “czars” and the millions they waste as a starting point. Many years ago, a group called the ‘Grace Commission’ was formed under President Reagan to identify areas of waste. We need a new Grace Commission.
Cutting 100 billion from a $3 trillion budget is a little over 3%. You won’t convince me that there’s not 3% waste across the board in our government. Let’s start there, and cut more.
Then we can look at a slight tax increase of 1% point (from 35% to 36%) for just one year. Next year, we repeat. Cut more, then go along with another one year tax increase.