- Jun 6, 2007
- 852
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It is really unbelievable that the Republicans are planning to pass a tax reform bill that increases the national debt by a trillion and a half dollars over the next ten years. The national debt is a ticking time bomb that when it goes off will permanently significantly damage the American people's standard of living and the only way to diffuse this is a permanent bipartisan effort in Washington and these Republican tax reform bills working their way through Congress because they significantly increase the country's yearly budget deficits in the eyes of Democrats permanently destroy the Republicans credibility on this issue and will cause the Democrats to refuse to agree to major cuts in the country's entitlement programs and social program spending. A competent thorough research into this matter would uncover statements by Democrat members of Congress to this effect the legitimate Democrat thinking is you Republicans aren't putting the burden of this problem on my constituents backs, low and middle income Americans, while your constituents the wealthy and big business get a benefit a tax cut it is outrageously unfair!
Why the national debt problem is a threat to the American people's standard of living is that it has grown so large $20.4 trillion dollars as of today and the country is throwing at least $600 billion dollars/year on top of that that the economic reverberations this will cause will bring this result. The interest payment on this debt will become unaffordable it will amount to too large a portion of the tax revenue the country takes in and will cause the American people to default on the debt or the cause the country to just print money to finance the debt (have the Federal Reserve Bank just buy greater amounts of the nations debt). This will cause interest rates in America to sky rocket and the value of the dollar to drop precipitously and these developments will continue indefinitely obviously reducing the American peoples standard of living because prices of things throughout our society will skyrocket as well as interest rates reducing the American people's ability to finance purchases and their wage increases will not keep up and the country will see higher unemployment and underemployment because the U.S. economy will be dramatically weaker because of these developments. If Washington does nothing just continues on its current course this scenario will definitely come to pass within the next twenty years, if Republicans pass their tax bill and practically throw away the nations chances of getting this national debt problem under control this catastrophic outcome will begin to take place within the next five years.
The Republicans claims that their tax bill will not increase the nation's debt are not trustworthy claims these claims will not stop the effect of their bill of destroying the country's ability to solve its national debt problem! Republican claims that their tax bill will so increase growth in the American economy that tax revenue flowing into the the nation's treasury from this increased growth will increase tax receipts to the extent there will be no increase in the national debt is simply not accurate. Numerous non-partisan expert authorities on this issue have analyzed the Republican tax reform bill and have concluded such a common conclusion is that factoring in growth it will still increase the national debt by a trillion dollars over ten years.
If the Republicans arrogantly and selfishly push through their tax reform bill or anything like their current budget busting tax reform bill the following scenario will likely play out. The nation's yearly budget deficits will move and stabilize at $750 billion plus/year. At some point over the next four years the financial rating agencies will start doing their job (it will be so obvious to a reasonably informed person that America has lost control of its debt problem they will have to move) and take away America's triple AAA financial rating. This will cause the first major shock wave to the world-wide economy because by law and by contract numerous entities throughout the world must hold AAA securities and today U.S. securities do this job. This downgrade will cause a massive selling of U.S. securities and a permanent lower demand for U.S. securities which will thus cause an increase in the interest rates of U.S. securities because investors in such securities will demand this for their purchase of these items. Because America is such a humongous player in the world's securities market their interest rate hike will cause interest rates throughout the world to be higher which will increase businesses and individuals costs throughout the world and decrease their spending which will cause the equity markets to fall throughout the world because business earnings will decrease. One cannot know whether these developments will throw the world into a recession and/or depression but one thing is sure is that the interest rates on U.S. securities will definitely be significantly permanently increased. This will increase America's interest payments on its debt!
If Republican's go through with passing this tax bill the following scenario will unfold. The nation's budget problem will remain out of control resulting in yearly budget deficits of $750 plus billion dollars per year. The Finance Rating agencies will have to start doing their job and take away America's triple AAA finance rating. Because by law and contract throughout the world many entities must hold triple AAA securities which today U.S. securities does the job with this change these entities will be forced to dump U.S. securities resulting in U.S. security interest rates permanently rising. Today America pays 2.2% interest rate on its debt if this scenario plays out America will likely be paying 3 to 4 percent on its national debt meaning the $450 billion yearly interest payment, thirteen percent of America's tax receipts, will rise to $600 billion to $900 billion. The American people will look at this and see the wrongfulness of this that all this money that could be used to build schools, roads and new planes for America's military, etc. is going to pay interest on the national debt created by a dysfunctional corrupt political system we're not going along with this! Wise Americans know that America needs the following to fix America's dysfunctional government. America needs term limits two for Senators five for House members - elected officials need to be going to Washington to do good not to principally hold onto their jobs. America needs to stop gerrymandering which sends extremist of both parties to Congress; America needs to draw voting districts by algorithm creating proportional borders centered on states major cities and centers of mass based on where voters reside. America needs the constitution to be amended to say political donations to elections is not free speech and need to shut down these 401k groups and make other changes that stop our elections into being media wars. When the American people collectively recognize the unfairness their experiencing with this out of control debt they will default which will cause a contagion through the world with catastrophic world-wide economic effects. Republican's don't pursue passing this tax reform bill or anything like it that balloons the nation's debt because you will set off an economic neutron bomb that will hurt America from coast to coast!
Why the national debt problem is a threat to the American people's standard of living is that it has grown so large $20.4 trillion dollars as of today and the country is throwing at least $600 billion dollars/year on top of that that the economic reverberations this will cause will bring this result. The interest payment on this debt will become unaffordable it will amount to too large a portion of the tax revenue the country takes in and will cause the American people to default on the debt or the cause the country to just print money to finance the debt (have the Federal Reserve Bank just buy greater amounts of the nations debt). This will cause interest rates in America to sky rocket and the value of the dollar to drop precipitously and these developments will continue indefinitely obviously reducing the American peoples standard of living because prices of things throughout our society will skyrocket as well as interest rates reducing the American people's ability to finance purchases and their wage increases will not keep up and the country will see higher unemployment and underemployment because the U.S. economy will be dramatically weaker because of these developments. If Washington does nothing just continues on its current course this scenario will definitely come to pass within the next twenty years, if Republicans pass their tax bill and practically throw away the nations chances of getting this national debt problem under control this catastrophic outcome will begin to take place within the next five years.
The Republicans claims that their tax bill will not increase the nation's debt are not trustworthy claims these claims will not stop the effect of their bill of destroying the country's ability to solve its national debt problem! Republican claims that their tax bill will so increase growth in the American economy that tax revenue flowing into the the nation's treasury from this increased growth will increase tax receipts to the extent there will be no increase in the national debt is simply not accurate. Numerous non-partisan expert authorities on this issue have analyzed the Republican tax reform bill and have concluded such a common conclusion is that factoring in growth it will still increase the national debt by a trillion dollars over ten years.
If the Republicans arrogantly and selfishly push through their tax reform bill or anything like their current budget busting tax reform bill the following scenario will likely play out. The nation's yearly budget deficits will move and stabilize at $750 billion plus/year. At some point over the next four years the financial rating agencies will start doing their job (it will be so obvious to a reasonably informed person that America has lost control of its debt problem they will have to move) and take away America's triple AAA financial rating. This will cause the first major shock wave to the world-wide economy because by law and by contract numerous entities throughout the world must hold AAA securities and today U.S. securities do this job. This downgrade will cause a massive selling of U.S. securities and a permanent lower demand for U.S. securities which will thus cause an increase in the interest rates of U.S. securities because investors in such securities will demand this for their purchase of these items. Because America is such a humongous player in the world's securities market their interest rate hike will cause interest rates throughout the world to be higher which will increase businesses and individuals costs throughout the world and decrease their spending which will cause the equity markets to fall throughout the world because business earnings will decrease. One cannot know whether these developments will throw the world into a recession and/or depression but one thing is sure is that the interest rates on U.S. securities will definitely be significantly permanently increased. This will increase America's interest payments on its debt!
If Republican's go through with passing this tax bill the following scenario will unfold. The nation's budget problem will remain out of control resulting in yearly budget deficits of $750 plus billion dollars per year. The Finance Rating agencies will have to start doing their job and take away America's triple AAA finance rating. Because by law and contract throughout the world many entities must hold triple AAA securities which today U.S. securities does the job with this change these entities will be forced to dump U.S. securities resulting in U.S. security interest rates permanently rising. Today America pays 2.2% interest rate on its debt if this scenario plays out America will likely be paying 3 to 4 percent on its national debt meaning the $450 billion yearly interest payment, thirteen percent of America's tax receipts, will rise to $600 billion to $900 billion. The American people will look at this and see the wrongfulness of this that all this money that could be used to build schools, roads and new planes for America's military, etc. is going to pay interest on the national debt created by a dysfunctional corrupt political system we're not going along with this! Wise Americans know that America needs the following to fix America's dysfunctional government. America needs term limits two for Senators five for House members - elected officials need to be going to Washington to do good not to principally hold onto their jobs. America needs to stop gerrymandering which sends extremist of both parties to Congress; America needs to draw voting districts by algorithm creating proportional borders centered on states major cities and centers of mass based on where voters reside. America needs the constitution to be amended to say political donations to elections is not free speech and need to shut down these 401k groups and make other changes that stop our elections into being media wars. When the American people collectively recognize the unfairness their experiencing with this out of control debt they will default which will cause a contagion through the world with catastrophic world-wide economic effects. Republican's don't pursue passing this tax reform bill or anything like it that balloons the nation's debt because you will set off an economic neutron bomb that will hurt America from coast to coast!
