I think we can all agree that we need to cut government spending and reduce our 14 plus trillion dollar debt. So how does the President who up until now has not lead on the issue of debt and deficit propose cuts going forward? His budget proposal for 2012 was criticized by both parties as doing nothing to reduce our staggering debt. Was it a case of clueless leadership or was it I’ll let the Republicans do the cutting, blame them and when it works I’ll take the credit. I think the later.
Now that the government has not shut down because of the deal struck between the Democrats and the Republicans in Congress it only allows for a few weeks before 2 more major battles begin. Who won that fight? Some say the house Republicans lead by John Boehner because the managed to cut this year’s budget by $38 Billion. Some say the President won because it made him look like he was serious about cutting the deficit and avoided a government shutdown. Cutting $38 billion seems like a lot except that that equals about 2 days of interest we pay on the debt. It is insignificant when compared to our annual deficit of 1.5 trillion dollars. Cutting spending and reducing the debt will be painful and take strong leadership by both parties to get it done.
The debt and the deficit are more than just cutting dollars. It is about the role of the federal government. Do we want to continue to grow the “nanny” state we have become, or move our country back to more individual responsibility? Democrats have their sacred cows of entitlement programs which they never want to cut, but the growth in these programs is the main cause of our unsustainable debt. Reforming these programs is essential if we are serious about debt reduction. It will require trillions in cuts not billions and a lot of political courage.
The debt limit is the first battle which will take place. I believe Congress should not increase the debt limit. IT’S TIME TO SAY NO TO MORE DEBT. Cutting more from this year’s budget is the answer. It’s time for those elected to Congress last November mainly on the issue of reducing the debt to hold their leaders feet to the fire and stand firm on no more debt.
The next battle will be about the 2012 budget. Congressman Paul Ryan the Chairman of the budget committee has a proposed budget which will cut the debt by $6.5 trillion over the next ten years. No longer can the President say the Republicans are the party of just “no”. They have a proposal let the Democrats start saying “no”. This plan is a great start, but does not deal with Social Security or tax reform which will be taken up by other committees in the house.
President Obama is about to reveal his budget proposal which will call for tax increases and start class warfare again. Mr. Obama wants to tax the high income earners by letting the Bush tax cuts expire. I say what about the 40% of Americans who pay no tax at all. Shouldn’t all Americans have some skin in the game, or how about Mr. Obama’s friend and economic advisor Jeffery Immelt whose G E corporation made 14 Billion dollars in profit and did not pay one cent in income tax?
Our current tax code is corrupt and need to be reformed. The best way to reduce the deficit is to have a healthy growing economy. More people working paying taxes will have a direct affect on reducing the deficit. The stimulus by all accounts was a dismal failure proving government does not create jobs the private sector does. The only category of workers whose employment went up the past 2 years was government workers.
To get serious about our deficits and debt will require getting the economy moving, reforming entitlements, reforming the tax code, producing more and cheaper energy and reduce business taxes and regulations. We are Americans we can do this. We just need the government to get out of the way. Let the battle begin.