WSJ OpEd “Can Taxing the Rich Erase the Deficit?”

Good food for thought piece here on the Wall Street Journal:

Here’s what few will tell you. The math is what it is. No amount of spin (from either side) can get past an honest examination of the math of our tax revenue, potential tax revenue, current spending, and interest on our debt. Taxing the “rich” into oblivion will not cure our nation’s debt problem. It will barely make a dent and will do a lot of harm in many other areas.

Does our tax code need serious review?  Sure it does, but don’t fall prey to the politicians playing to your emotions and envy versus taking a honest look at the problem by simply looking at the math. You’re going to have to be tough and savvy about this. The politicians don’t want you looking at the math, they want to distract you from the real problem (ever increasing spending). It’s like dealing with an alcoholic that doesn’t want to admit he’s an alcoholic. In this case the alcohol is spending.

When you hear a Washington DC politician talking about “spending cuts” be careful with their math. Often they are actually talking about a cut in the rate of spending increases. Example?  They will often take a budget that had a 7% increase in spending on some budget item compared to last year and “cut” it to a 5% increase and call it a 2% cut. In reality that’s not a 2% cut, it’s a 5% increase!

The only viable fix is for us to realize that government spending MUST be REDUCED and DRASTICALLY.  The cuts are coming sooner or later. The only question is will we stop the childishness we heard from our Campaigner in Chief this afternoon and get serious now?  Or will gutless politicians (more scared of loosing an election than their children’s future) keep kicking the can ever so closer to the cliff.

Think of it this way….

Suppose our economic mess is a plane on it’s last drop or two of fuel. We have two choices. We can make a hard emergency landing in a swamp and maybe walk away from it. Or we can let it smash it into the side of the mountain just past the swamp. At this point, this far in, there are no other choices. Don’t kid yourself otherwise.

The brutal reality is that the math is what it is.


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