(03-13-2013 08:23 AM)Owl 69/70/75 Wrote: We're not going to solve this problem by catering to special interests. We are going to have to:
1. Raise tax revenues (republicans hate this), but raising rates on upper incomes and corporations is the wrong way to do it (democrats hate that)
2. Reform entitlements (democrats hate this)
3. Cut defense spending (republicans hate that)
4. Cut non-defense discretionary spending (both gangs hate that)
As soon as people stop putting party ahead of country, we can make some real progress. That most likely means it will never happen.
Your ideas here and in another thread are spot on. It's not a difficult thing to do if the welfare of the country is the primary goal of both parties. Sadly, staying in power to advance political ideology has surpassed the welfare of the nation.
O just got what is in reality a pretty modest tax hike. $600B sounds like a lot, but in todays economic state, $600B doesn't buy what it used to. Lowering tax rates for corporations and job creators has lead to an increase in tax revenue nearly 100% of the time. Democrats don't understand that lowering the rate can lead to an increase in tax revenues most of the time. Here are a few examples.
Bush cut the capital gains tax from 20 to 15% in 2003. From 2003 to 2005 capital gains tax revenue doubled.
Bush cut the top corporate dividend tax rate from 40 to 15%. Dividends paid, and the taxes paid on them, rose dramatically.
Reagan cut taxes by 25% across the board and lowered the top rate from 70 to 28%. Federal revenue doubled.
Kennedy proposed tax cuts that were enacted after his death. A 25% cut in income tax rates lead to a 41% increase in tax revenue and economic growth of 50%.
Entitlements have to be reformed. They're a massive anchor being towed by the economy. Just this morning there was a story on the news about removing the work requirement from the food stamp program. Government entitlement programs have taken all responsibility from the individual and promised to take care of them in exchange for nothing. These massive programs will sink the US if solvent alternatives are not explored. Everyone, on both sides of the argument knows the the current path is unsustainable, yet their only course of action is to continually kick the can down the road.
Defense and non-discretionary spending have to be trimmed down in a responsible manner after taxes and entitlements are taken care of.
It isn't impossible to do any of this. It's just harder than shrugging the responsibility and leaving it for the next generation. IMO thats why the "old guard" has to go. Reid, Pelosi, Fienstien, Rangle, McCain, Graham, Waxman, Waters, Jones, Jackson Lee, King, Schumer, Boxer, Grassley, Baucus, Hatch, and a bunch I can't think of right now have served their time in public office and need to make way for the younger generation that will have to deal with many of the problems that the old guard have created for them.