A deal like “Plan B” that raises taxes on those making over $1 million per year and offers limited spending cuts over 10 years will do nothing to solve our underlying fiscal problems.
We are a nation that is suffering from a national debt of $16.3 trillion and annual deficits over $1 trillion for the past five years. Clearly we do not have a revenue problem; we have a major spending problem.
Both President Obama and Congress seem incapable of cutting the monstrous federal budget. The fact that the “Plan B” proposal included limited spending cuts and increased tax rates was a major concession to President Obama. Although this plan was originally supported by Senate Democrats it was rejected by President Obama who continues to demand more tax increases and fewer spending cuts.
The Boehner plan was also rejected by House conservatives who do not want any type of tax increase. House Republicans were elected on a platform of low taxes, reduced government spending and limited government. If they support “Plan B” or a similar type of tax increase they would betray the voters who elected them to office.
In contrast to the clear mandate of House Republicans, President Obama was elected on a platform of bashing George W. Bush and demonizing Mitt Romney as a cruel rich guy. He was not elected to raise taxes as most Americans understand increased taxes will only lead to job losses. If taxes are increased on upper income Americans who are business owners, many will cut costs by reducing their labor force. This will only increase the unemployment rate.
The best way to grow the economy and lower the unemployment rate is to offer a combination of serious tax cuts and major reductions in federal spending. Our federal government spending now consumes approximately 25% of the nation’s GDP, whereas it was only 18% in 2000, when the country last enjoyed a budget surplus.
According to former House Speaker Newt Gingrich, Republicans should not approve a bogus solution like “Plan B.” Instead he believes they should reconvene in early January and hold hearings on the out of control federal spending. This is a great idea for it will educate Americans about the real problem, outrageous deficit spending.
Republicans need to stay home until 2013 for no deal is much better than a bad deal. If Boehner persists in pushing a tax increase plan, he needs to be replaced as House Speaker.
Although we will go over the fiscal cliff with the start of the New Year and the Bush tax cuts will be rescinded, the silver lining will be the automatic spending cuts of $1.2 trillion over the next nine years.
At that point, the next Congress needs to approve real, substantial tax cuts, including reform that eliminates unfair tax deductions and exemptions. They should send that bill to President Obama and dare him to veto it.
It is time the conservatives took charge of Congress and turned the tables on President Obama. They need to stand firm, stand on the principles outlined in their platform and stop being railroaded by the media, the liberals in Congress and Barack Obama.
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