It's the Economy Stupid
I'm sick of both political parties sparring in congress about temporary tax breaks for this person, that business, or trying to score political points for a political cause, this or that new political program. Hey, if you haven't noticed we're broke. We don't have the money to pass around.
It IS about the economy, stupid. It's NOT about temporary tax cuts for workers and small businesses, taxing the rich and well-to-do, new regulations, new government programs, relieving personal debt, spreading the wealth around, government stimulus, or perceived fairness, or tinkering around the edges.
Get the economy going and there will be money for all sorts of causes like helping the poor, education, building the infrastructure, the military, or even war if need be. And, it's not as if we've not been spending enough government money. Spending more government money is a major problem.
Tackle the big things. Control government spending. Doing nothing always means growth of spending. It's built into the structure - more every year. If you can't control or tame that, more taxes will mean more spending. The net effect will be zero, except that in this case, zero means minus a trillion dollars ($1,000,000,000,000) a year and a cumulative $16 trillion in debt by the end of this year. We shouldn't be adding to those numbers.
Government is out of control. I just got back from a weekend in the Washington, D.C. area. The economy at the seat of world power is booming and has been booming. Unemployment is minuscule; real estate is booming; rental costs are astronomical. Highways are clogged, businesses are flourishing. And, we're feeding the monster.
Obama appointed a committee a few years back and they came up with a plan called the Simpson-Bowles plan for cuts and taxes. Obama and the democrats ignored it. Republicans didn't like the tax part and at least came up with their own plan of cuts and eliminating tax exemptions - the Ryan plan. Democrats have demonized it. Now one lone democrat, who isn't running for office, has reintroduced the Simpson-Bowles plan. It will probably be ignored.
The last raise the debt limit debate resulted in a push the issue down the road compromise that has draconian cuts that neither party favors. Deadline for addressing those is the end of this year when we will also have to raise the debt ceiling again. It's the same time the ten year Bush tax cuts go away, temporary payroll taxes cease, and new ObamaCare taxes go into effect. It's the perfect economic storm.
We need a whole new, very simplified tax code - not a likely event for this year. At least stabilize what we got, don't add new things to it, or politicize it more than it has been already. Curtail spending. Encourage investment. Quit demonizing it. We need dividends and capital gains for every group from individual savers, business investors, pension funds. Quit stifling fossil fuel energy development. We're on the verge of being the Middle East of energy.
Instead of trying to figure how government can get into every economic activity, work on trying to get them out of it. There's plenty of money sitting on the sidelines whether accumulated by private businesses or thrown out there by government and the Federal Reserve. It's ready to be used. Just get the politicians out of the way.