- Jun 6, 2007
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Washington is really fumbling the ball on passing legislation that lowers the corporate tax rate! If you asked the American people right after this past November election what significant type of legislation you think the next Congress will most likely pass the majority would probably say it would be legislation that closes a lot of the loopholes in the corporate section of the tax code and uses those savings to lower the overall corporate tax rates for a huge number of congressional candidates said they agree with such a plan! If one listens to the rhetoric coming out of Washington now one thinks forget such legislation passing now for the Democrats are talking about trading closing these corporate loopholes for federal spending cuts to make a dent in the budget deficit which the country must begin to do and the Republicans are like we don't even want to talk about the tax code with the fiscal cliff legislation we are totally and completely done with the tax code. Republican and Democrat leaders in Washington need to screw their heads on right on this issue and come out with public statements that this plan to lower the corporate tax rate is still on track closing corporate tax code loopholes is reserved for lowering the corporate tax rate and this issue is a closed matter and that this plan is on the fast track committee chairman in both the Senate and House for the committees that write this corporate tax code legislation have been instructed to top prioritize this legislation and proceed at top speed to get the bill out of their respective committee!
What gets me about this desperately needed task of cutting federal spending is how haywire some of the thinking of Democrats is related to this issue. The same day this mega-important fiscal cliff legislation passed both chambers of Congress America's Democrat President comes out in a Press appearance and says I will not debate with Congress on federal spending cuts for raising the nation's debt ceiling because Congress just has to raise this ceiling to pay the bills it already racked up. This type of thinking isn't novel a lot of left leaning brilliant commentators have publicly said they think that the country should do away with this debt ceiling law altogether because if Congress passes a budget the Executive branch should automatically have the power to pay for this budget which includes the power to borrow like most countries throughout the world operate things! All these people are forgetting one critically important thing which is that America's political system is super-flawed is super-dysfunctional it is wired to irresponsibly spend money and the debt ceiling law is the country's only really good check to rein in wrongful levels of borrowing, it would be an outstanding harming of America if Washington ever does away with this law. Members of Congress and the occupant of the White House no exactly what I mean often to get legislation passed through chambers of Congress Congressional leadership has to give financial enticements to individual members of Congress for their vote a perfect example of this was when Congress allowed earmarks in Budget bills where such bills contained three, four, five thousand specific expenditures for projects in individual Congress persons' district to get their vote and even this year the fiscal cliff legislation had these spending enticements the media ran a lot of stories on this topic but two examples that stick out are the tax credits for movie productions and the tax credits for wind power; one could probably say the truth of the matter is that often when members of Congress vote for spending bills the expenditures are just numbers on a piece of paper they don't appreciate that future generations of Americans are going to be burdened paying off these expenditures. Couple this enticement problem with the army of lobbyist America has and the ineffective campaign finance laws which pressure members of Congress to sell their position on issues for campaign money it is almost guaranteed Washington will be over spending! Another argument which some Democrats use where their way off the mark is they argue we can't cut federal spending now because it will hurt economic growth and the country is still recovering from the Great Recession and the nation needs to create jobs, this is a dumb argument the economy is on track to steadily increase employment for the equity markets are doing well, the housing industry is steadily healing, the energy sector is on the upswing, industry generally is flush with money looking to invest. Wisdom and good judgment calls for the conclusion that the greatest threat to employment in America is the recession threatening in 2015 from inflation when unemployment falls to 6.5 % and the Federal Reserve follows its plan and stops buying treasury bonds and home mortgage bonds and because the country's debt is so large there isn't enough investors to easily replace the Federal Reserve's withdrawal and the result is that interest rates becoming unduly high and the Federal Reserve is not able to complete this withdrawal but rather needs to continue to pour money into the economy through these markets which culminates in inflation through both higher interest rates and asset and consumer good price expansion, the nation has seen this development before it was called the 1980's recession and it was sure a bad one; now is the time to pass a plan that cuts federal spending modestly over the course of the next ten years and makes it easier to finance the nation's debt so this ominous future for the country never happens! One thing on this whole debate that the American people should find laughable is when Democrat leaders try to respond to the argument you Democrats during this past election season continually banged the Republicans that the Country needs a balanced approach to cut the deficit the country needs all groups to do their fair share and so the Republicans say with the fiscal cliff legislation the wealthy in America will be doing their fair share for they will be paying an additional $620 billion in taxes over the next ten years where is the balance where is the spending cut share and some of these Democrats now say with the 2011 debt ceiling legislation we have cut a trillion dollars from the deficit over ten years that is our share this is laughable because why didn't you make this ridiculous claim during the election season where the American people could have responded to it at the polls moreover, what about the Democrats irresponsible and extreme overspending with the first two budgets of the President Obama Administration what was the increase in non-entitlement spending during those years like nine percent one year and eight percent the other and what was the inflation rate during those years which would be a good gage for determining responsible spending increases something like two to three percent this one trillion in cuts arising from this 2011 legislation is a partial effort to fix this over increase in the baseline federal budget during these two years.
The American people need to keep in mind the big picture in this budget deficit debate and not get taken into a dense fog with all these various specific issues related to this debate. The big picture is that the country is running one trillion dollar per year budget deficits where the cost of the "edicare" entitlement program with the retirement of the baby boom generation and the "Obamacare health insurance assistance for middle and lower income non-seniors" entitlement program leave large unknowns for deficit spending for America in the future. The big picture is that future generations of American will have to pay this one trillion dollar per year of debt and the interest on this debt and as been said by many respected leaders in America this is generational theft this generation is stealing this money from future generations and stealing these future generations quality of life for future generations will have significant amounts of federal revenue raised during their lifetime being used to pay the interest and principle on this debt instead of quality of life issues like college aid, housing for low income Americans, road and bridge construction, etc.. This is a most grievous moral wrong that needs to be stopped!
What gets me about this desperately needed task of cutting federal spending is how haywire some of the thinking of Democrats is related to this issue. The same day this mega-important fiscal cliff legislation passed both chambers of Congress America's Democrat President comes out in a Press appearance and says I will not debate with Congress on federal spending cuts for raising the nation's debt ceiling because Congress just has to raise this ceiling to pay the bills it already racked up. This type of thinking isn't novel a lot of left leaning brilliant commentators have publicly said they think that the country should do away with this debt ceiling law altogether because if Congress passes a budget the Executive branch should automatically have the power to pay for this budget which includes the power to borrow like most countries throughout the world operate things! All these people are forgetting one critically important thing which is that America's political system is super-flawed is super-dysfunctional it is wired to irresponsibly spend money and the debt ceiling law is the country's only really good check to rein in wrongful levels of borrowing, it would be an outstanding harming of America if Washington ever does away with this law. Members of Congress and the occupant of the White House no exactly what I mean often to get legislation passed through chambers of Congress Congressional leadership has to give financial enticements to individual members of Congress for their vote a perfect example of this was when Congress allowed earmarks in Budget bills where such bills contained three, four, five thousand specific expenditures for projects in individual Congress persons' district to get their vote and even this year the fiscal cliff legislation had these spending enticements the media ran a lot of stories on this topic but two examples that stick out are the tax credits for movie productions and the tax credits for wind power; one could probably say the truth of the matter is that often when members of Congress vote for spending bills the expenditures are just numbers on a piece of paper they don't appreciate that future generations of Americans are going to be burdened paying off these expenditures. Couple this enticement problem with the army of lobbyist America has and the ineffective campaign finance laws which pressure members of Congress to sell their position on issues for campaign money it is almost guaranteed Washington will be over spending! Another argument which some Democrats use where their way off the mark is they argue we can't cut federal spending now because it will hurt economic growth and the country is still recovering from the Great Recession and the nation needs to create jobs, this is a dumb argument the economy is on track to steadily increase employment for the equity markets are doing well, the housing industry is steadily healing, the energy sector is on the upswing, industry generally is flush with money looking to invest. Wisdom and good judgment calls for the conclusion that the greatest threat to employment in America is the recession threatening in 2015 from inflation when unemployment falls to 6.5 % and the Federal Reserve follows its plan and stops buying treasury bonds and home mortgage bonds and because the country's debt is so large there isn't enough investors to easily replace the Federal Reserve's withdrawal and the result is that interest rates becoming unduly high and the Federal Reserve is not able to complete this withdrawal but rather needs to continue to pour money into the economy through these markets which culminates in inflation through both higher interest rates and asset and consumer good price expansion, the nation has seen this development before it was called the 1980's recession and it was sure a bad one; now is the time to pass a plan that cuts federal spending modestly over the course of the next ten years and makes it easier to finance the nation's debt so this ominous future for the country never happens! One thing on this whole debate that the American people should find laughable is when Democrat leaders try to respond to the argument you Democrats during this past election season continually banged the Republicans that the Country needs a balanced approach to cut the deficit the country needs all groups to do their fair share and so the Republicans say with the fiscal cliff legislation the wealthy in America will be doing their fair share for they will be paying an additional $620 billion in taxes over the next ten years where is the balance where is the spending cut share and some of these Democrats now say with the 2011 debt ceiling legislation we have cut a trillion dollars from the deficit over ten years that is our share this is laughable because why didn't you make this ridiculous claim during the election season where the American people could have responded to it at the polls moreover, what about the Democrats irresponsible and extreme overspending with the first two budgets of the President Obama Administration what was the increase in non-entitlement spending during those years like nine percent one year and eight percent the other and what was the inflation rate during those years which would be a good gage for determining responsible spending increases something like two to three percent this one trillion in cuts arising from this 2011 legislation is a partial effort to fix this over increase in the baseline federal budget during these two years.
The American people need to keep in mind the big picture in this budget deficit debate and not get taken into a dense fog with all these various specific issues related to this debate. The big picture is that the country is running one trillion dollar per year budget deficits where the cost of the "edicare" entitlement program with the retirement of the baby boom generation and the "Obamacare health insurance assistance for middle and lower income non-seniors" entitlement program leave large unknowns for deficit spending for America in the future. The big picture is that future generations of American will have to pay this one trillion dollar per year of debt and the interest on this debt and as been said by many respected leaders in America this is generational theft this generation is stealing this money from future generations and stealing these future generations quality of life for future generations will have significant amounts of federal revenue raised during their lifetime being used to pay the interest and principle on this debt instead of quality of life issues like college aid, housing for low income Americans, road and bridge construction, etc.. This is a most grievous moral wrong that needs to be stopped!
