Let me say it again: The federal government, and most state and local governments, have a spending problem.
We do not have a tax problem in the US!
For much of the last 50 years, the federal government has been running deficits.
Yet, they were manageable deficits, or 3-4% of GDP.
Today, we are running deficits of 10% of GDP.
This is unsustainable, no matter times Pres BO wants to tell us that he is going to raise taxes on the rich!
The Heritage Foundation has a great post today: The Economic Toll of the Obama Tax Hikes
"Contrary to what you hear from the White House, the Obama tax hikes do not just hit the wealthy.
Economic life at all levels is so tightly interwoven that tax increases for one segment of the population will ultimately affect everyone.
Nearly everyone will pay something, either in lower income, higher interest rates or more expensive products, to name just three economic pains the Obama tax hikes will inflict on the economy.
The Heritage Foundation’s Center for Data Analysis has run simulations using their Individual Income Tax Model comparing current law with President Obama’s most recent budget proposal which includes:
1) higher taxes on individuals earning more than $200,000 and couples earning more than $250,000;
2) higher taxes on capital gains;
3) higher taxes on dividends; and
4) the return of the death tax.
Destroy an average of 693,000 jobs every year through 2020.
Drain $726 billion from disposable income, $38 billion from personal savings, and $33 billion from business investments.
Raise taxes on the 55% of all joint filers earning more than $250,000 who run small businesses that employ others.
Cost the average non-farm small-business owner $3,500 more in taxes.
Cost the 49% of all seniors with income below $250,000 $525 in additional dividend taxes.
Cost the 25% all seniors with income below $250,000 $742 in higher taxes.
The bottom line is clear: All Americans would suffer economic harm under the Obama tax hikes."
Indeed that they will!
It's time to stand tough and call for a spending freeze, the repeal of BO-Care, no vote on cap & trade and tax cuts for people who create jobs and produce wealth.
Rep Cantor of Virginia took the first shot today. He wrote Tax Fight: GOP Won't Back Down
Right on! Do not back down and give US voters a real choice in November.
We can become a "food stamps" nation under Pres BO or we can return to our "free market roots", or the same ones that made the US such a prosperous past.
