Usually a cliff is something that is well defined. You can see it on a map. In some cases, there is water at the bottom of the cliff because a river cutting through over thousands of years has created the cliff.
Like that river that took thousands of years to make the cliff, our national debt and our federal spending has been increasing at an alarming rate in the past few decades, and like the real cliff, going over the side of it is not a very pleasant prospect. For a moment, let’s look at income and spending.
Consider the recent Powerball Jackpot of $540,000,000. Did you realize that would “power the federal government” for about 80 minutes? 80 minutes??? Back in 1904, the ANNUAL money the government received was 541 million dollars, and now, 108 years later, that same income only runs the government for 80 minutes?
So, before we head off the cliff, what is the plan? Well, the current plan of the Obama administration is “tax the rich” so they pay “their fair share.” OK, Mister economics major, let’s do what you propose. Tax the rich. Fine. Let’s make the people in the top 5% of income earners pay more. But wait…the top 5% in this country already pay 59% of the taxes. Is that fair? Should they pay more? Let’s just say they do. How close will that bring us to solving the spending problem in Washington?
The answer is, it really won’t help much at all. By increasing taxes on those making more then $250,000 per year, it would pay for NINE days of the deficit created by government spending. So, what about the other 356 days in the year, huh?
This cannot JUST be about tax increases. By repeating this line of “paying their fair share” over and over, the President is attempting to fool the American people into believing that taxation is the only way to prosperity. The cold hard fact is…it’s not. There MUST be spending cuts!
States have to balance their budgets, and we should hold the Federal government just as responsible. Call or write to your US Representatives and Senators. Encourage them to support a deal to avoid the fiscal cliff, but only if SPENDING CUTS are a part of the deal.