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By - July 30, 2011

The Deficit Dance

The Deficit DanceWhy can’t Congress agree on fixing the Deficit?

Republicans and Democrats have been spending a tremendous amount of energy discussing the deficit, the debt ceiling, and the need to pass legislation to address the August 2nd deadline.  Both sides are accusing the other of being unwilling to compromise.  What can you believe?

In general, Republicans have argued it makes no sense to raise taxes, even on the “rich” during a time of recession; the government has a spending problem, not a revenue problem; and a long-term stimulus to the economy can be found in lowering tax rates for corporations and protecting the “Bush” tax cuts for everyone, including job creators.  Simplify the tax code, eliminate the loopholes – such as the ones that allowed GE to pay no taxes last year – and create some stability to curb fear of investment.

Sounds reasonable to me.  Seems unlikely to result, as Bill Murray noted in Ghostbusters, in “Human sacrifice!  Dogs and cats living together! Mass hysteria!”

In contrast, Senate Democrats have failed to submit a budget in the last two years.

President Obama, who voted a debt ceiling increase when he was a Senator because it was a sign of leadership failure, failed to submit a deficit reduction plan and then asked for a clean debt ceiling increase.   Obama has presided over a trillion dollar a year deficit since his term in office began, the three largest deficits in the history of the United States.

Obama largely ignored the deficit until it began to affect him in the polls.

Democrats have argued the wealthy need to pay their fair share (when the top ten percent of tax payers pay about 70 percent of the income and the top one percent pays about 38 percent).

Democrats also state the draconian cuts proposed by the Republicans will kill the elderly and disabled, although the Republicans have proposed Medicare reforms which do not impact those 55 and over and a budget cut of $4 trillion dollars over 10 years is the equivalent of someone who was planning on spending $100 over the next ten years trying to get by spending only $95.

Does anyone believe the government could not find a way to reduce spending five percent over the next ten years without resulting to killing seniors and the disabled?

Most Americans will not take the time to understand the issues, will assume both sides have merit, and push for a compromise.  Ultimately a compromise will be reached, if only to buy time and push the heavy lifting down the road.

Ultimately, if one (especially the writers at the Red State Report) understands the deficit issues, it is difficult to imagine why anyone would want to give Barack Obama another term in the White House., but then one remembers FDR getting four terms.

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Comments (1)

 

  1. John says:

    Well said about Obama and the polls. He doesn’t care about anything except getting reelected, so he can cram the rest of this down our throats.

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