Fareed Zakaria - To deal with the deficit, let the tax cuts expire
The "Bush tax cuts," passed in 2001 and 2003, remain the single largest cause of America's structural deficit -- that is, the deficit not caused by the collapse in tax revenue when the economy goes into recession. The Bush administration inherited budget surpluses from the Clinton administration. What turned these into deficits, even before the recession? There were three fundamental new costs: the tax cuts, the Medicare prescription-drug bill and post-9/11 security spending (including the wars in Iraq and Afghanistan). Of these the tax cuts were by far the largest, adding up to $2.3 trillion over 10 years. According to the Congressional Budget Office, nearly half the cost of all legislation enacted from 2001 to 2007 can be attributed to the tax cuts.
I believe in the human spirit not the government.
Last edited by bwh27; 07-06-2011 at 01:17 PM.
And who in there right mind thinks that the government won't misspend the extra money they might generate from punishing the rich? All they are going to do is waste it. That has been proven for so many years that an argument against it sounds ridiculous. If we are all created equal under the law and our constitution, then arbitrarily taxing some more than others makes people not equal. Doesn't matter what dollar figure you put on it. We should all pay the same percentage no matter how much we make. It's only fair.
I'm in the top 2 or 3% of wage earners, and I feel like I pay more than my share of taxes. I'm not a millionaire, I have two kids and a wife, a semi-large house, etc and I put the majority of my money (after taxes) right back into circulation. That's not enough? Is the best solution really for the Feds take more of my money to pay for bloated social programs?
The problem with our current tax structure is that it's to the point where a very small percentage of earners pay a huge majority of taxes. Make fun of "the rich" all you want, but the mob mentality of "take their money to pay for things" isn't really what America should be all about. If I was "fortunate" enough to have money fall into my lap from above, then maybe my point of view would be different.
We need to cut spending, including cutting sacred-cow entitlements.
We're never going to resolve this issue, since we obviously have differing ideologies, but I really do not understand the whole "punishing the rich for working hard" argument either. The idea that hedge fund managers have worked so much harder than middle class people just doesn't hold water, yet they make 100-10k times more money. Following that line of logic, billionaires work thousands of times harder than middle class people many of whom actually work longer hours. There is no causative relationship between intelligence and income, nor have I ever seen strong evidence that ultra rich people work harder than other Americans. In many cases, rich people work more ruthlessly than others to get ahead (eg Bill Gates, Zuckerberg) but how is that helping our economy, especially someone in the financial industry who make more money by deceiving others?