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The drivers of the debt are SS and Medicare. Until Dems agree to address them we are doomed. It will not be long before we are in the same position as Greece and Italy, and China will dictate our entitlement reform.
If we don't get a handle on this now, that is exactly where we will be, in the same positions as Italy, and Greece, not a nice place to be in.
Italy has twice the public debt we have and Greece is even higher. That's why slowing the growth now is the smarter way to go instead of making huge cuts that don't solve our unemployment problem, but would make them even worse.
We are hurtling headlong to their levels of debt with the tidal wave of boomers becoming eligible for SS and Medicare. We simply can't take half measures anymore.
We are hurtling headlong to their levels of debt with the tidal wave of boomers becoming eligible for SS and Medicare. We simply can't take half measures anymore.
Right, but to make sure we don't get there we have to have cuts, tax increases, and reforms.
I agree. That's why reforming and slowing the growth of programs that drive debt is the better way to go. Deficits and debt is a problem, but not an immediate problem. Our debt isn't the cause of our economic problems, it's more a symptom of our economic problems.
If we want to move towards a balance budget, we are going to have tax increases as well as cutting expenditures, but again it can't be too dramatic. Tax increases on the middle class to pay down the debt will only take money out of the economy. If we cut the tax avoidance measures on the estate tax and raised the percentage without raising the threshold amount we should start seeing a huge increase. As morbid as it may be, the baby boomers are getting to the age where more and more of them will be moving on.
Right, but to make sure we don't get there we have to have cuts, tax increases, and reforms.
I can agree to cuts, depending on what cuts, no more education cuts for example. Tax increases? People can barely afford to live now, need people to be able to have jobs before you can talk about tax increases. On top of that it needs to be fair taxes among all classes. Reforms, I can agree, but again depends on what you are trying to reform.
If we want to move towards a balance budget, we are going to have tax increases as well as cutting expenditures, but again it can't be too dramatic. Tax increases on the middle class to pay down the debt will only take money out of the economy. If we cut the tax avoidance measures on the estate tax and raised the percentage without raising the threshold amount we should start seeing a huge increase. As morbid as it may be, the baby boomers are getting to the age where more and more of them will be moving on.
I agree. I think most Democrats and Republicans do, also. The only problem is that Republicans want this to happen way too quickly and think the middle class should be paying more. It needs to happen over a long period of time. We need a course correction for the long term, but with immediate action now to reduce unemployment, which also lowers the deficit because more people will be paying taxes instead of using government assistance.
I agree. I think most Democrats and Republicans do, also. The only problem is that Republicans want this to happen way too quickly and think the middle class should be paying more. It needs to happen over a long period of time. We need a course correction for the long term, but with immediate action now to reduce unemployment, which also lowers the deficit because more people will be paying taxes instead of using government assistance.
Well the wealthiest people in the U.S., on average, or much older. The tax on inheritance would show immediate results. Think how many middle class americans you would need to tax to get 3 billion dollars. Well if you had an inheritance tax of 30% with all the tax avoidance measures like trusts taken out, you could conceivably get that with one dude with an estate of 10 billion. Raise it to 50% and now you are talking about 5 billion for just one deceased billionaire, who never had a tax increase during his lifetime. That sounds fair to me.
Yes, that is the common sense approach. Unfortunately, the republicans are talking about tax increases for the middle class and decreases for the wealthy.
The Republicans could care less about the country. Their sole mission is to grab more and more for the rich.
Using your own household as an example. Let's say you are in debt and your spending increases by 50% per year, which continues to increase your debt. If you cut the increase in spending by 25%, you are cutting your debt, you are slowing it's growth, but it is still growing.
This is where I fundamentally just disagree. The government isn't a household and doesn't/shouldn't behave like one. The government is not a corporation either, and therefore shouldn't be managed like a business. The government has nothing to gain from ONLY saving money by cutting federal jobs and spending during a economic downturn. All that does is add more people that will require government assistance but offer no contribution to tax revenue, cause they don't have jobs anymore. The problem right now is jobs and nobody is hiring.
This is where I fundamentally just disagree. The government isn't a household and doesn't/shouldn't behave like one. The government is not a corporation either, and therefore shouldn't be managed like a business. The government has nothing to gain from ONLY saving money by cutting federal jobs and spending during a economic downturn. All that does is add more people that will require government assistance but offer no contribution to tax revenue, cause they don't have jobs anymore. The problem right now is jobs and nobody is hiring.
Of course the government should be run like a household or business, if it wants money to run huge dedts. Look at Italy, it now has to pay 7% interest to finance it's debt. This is unsustainable. Italy has to undertake radical reforms now, or be forced to do so by it's creditors when it defaults.
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