Will Your Taxes Increase Soon?
According to a BusinessWeek article, Obama is “agnostic” on tax increases on the Middle Class, the group he vowed to not raise taxes a single cent on during his campaign and other speeches while President.
Obama in his interview said that all items need to be on the table when addressing the large, fiscal obstacles ahead for the country. This includes entitlement reform and it includes tax increases. He also does a good job of identifying the core issues:
“Our real problem is not the spike in spending last year, or the lost, even the lost revenues last year, as significant as those are,” he said. “The real problem has to do with the fact that there is a just a mismatch between the amount of money coming in and the amount of money going out. And that is going to require some big, tough choices that, so far, the political system has been unable to deal with.”
While I completely agree with that assessment, I’ve agreed with many of the things Obama has said in his many speeches. My problem is that I feel like his words are empty and his actions don’t line up with such statements.
In order to get on a sustainable path financially, there has to be cuts across the board. We’re talking Social Security, Medicare, defense spending, and throw in the hundreds of ridiculous agencies and projects that are hardly meaningful yet are soaking up capital. Most, if not all, of the cuts will be politically unpopular with a segment of society, and therefore, there will be politicians who refuse to address it. A lack of action and a lack of decisions on these very tough areas will result in the Fed having to monetize our debt and pure inflation will arrive. This will not be a pretty scenario.
I believe the bset comprehensive plan I’ve seen laid out for the future of America and for future fiscal stability is Congressman Paul Ryan’s Roadmap for America. It is simple, straight forward and fixes Social Security, health care, and lowers taxes.
I will be doing a more complete post on this “roadmap” in the near future.