Tuesday, July 19, 2011
Friday, July 15, 2011
Common Sense Vs. Politi-speak
I love politi-speak. More often than not politi-speak comes about when liberal politicians need to use words to fashion a more voter friendly message. As the debate over raising the debate ceiling continues to rage we have been inundated by calls from President Obama and what passes as leadership of the Democrat party for a solution that includes;
“an increase in revenues.”
The problem is, not one of the drooling set has called this politi-speak what it really is; an increase in taxes! The Democrats know full well that they can’t come out and tell the American people that they want to raise taxes!
Concerned that there might be a handful of folks who can see through the ruse of “revenue increase” the Democrats have also taken to painting this tax increase as “closing loopholes” in the tax law that give tax breaks to billionaires and corporations for private jets.
That sounds good too, right? Stick it to those greedy bastards and their luxury items. Once again the drooling moron media buys into this line of crap too. Hey even “Republicans” like Joke Scarborough from Morning Joke on MSNBC has labeled this idea as “common sense.”
Here’s the problem, you may think it’s absolutely stupid to give corporations and billionaires tax breaks for buying private jets, but think about it this way; not about who buys these planes, who builds these planes? Add to that who sells these planes? Add to that what goes into building those planes?
Think about it? There has to be millions of parts; plastic, metal, fabric, rubber, the list goes on and on that goes into the building of an aircraft. All of those parts and pieces are built by somebody, sold by somebody, engineered by somebody, manufactured by somebody, sold buy somebody. These somebody’s have JOBS! And they pay taxes! Yes they contribute revenue to the Federal Government!
If we follow the “common sense” thinking of Morning Joke, what is the likelihood that billionaires are going to cut back on buying new or additional planes? If this so-called loophole in the tax law encourages them to take advantage of savings and buy a plane, then that loophole is doing something the Obama administration has failed miserably to do; it’s created jobs!
Instead of closing this alleged loophole, maybe we should look at additional ways to encourage billionaires and corporations to spend more money! The same fundamental flaw exists in the Democrats “increase revenue” strategy. The U.S. economy is consumer driven, when you raise taxes, you not only take money out of the system that could be spent on goods and services, you also create an environment of uncertainty so consumers, businesses and even greedy billionaires stop spending.
This isn’t brain surgery! If you don’t buy that widget, then the guy who builds the widget doesn’t need to make more, and the guy who sells it, sells less and the guy who supplies the pieces of the widget sells less, and needs to build less, and the guy who supplies the raw materials for the widget sells less…and so on. In the end if you sell less then you may need less people, which means more unemployment and less revenue to the Federal Government.
So the genius of the Democrat strategy is to actually create more unemployed people during one of the most difficult economic periods in our history. Instead of raising taxes, what we really need Washington to do is to CUT SPENDING! and CUT TAXES!
If you cut taxes, you will increase revenue to the Federal Government! If you just swallowed your tongue: follow the logic. Tax cuts equal more spending which equals more goods needing to be manufactured, equals more people to make the stuff, equals MORE TAX PAYERS! Now look at history; every time tax cuts have been tried, it has resulted in an increase in revenue to the Federal Government. EVERY TIME!
Think about it; would you prefer a system that relies on a small number of people contributing to the tax base of a country or would you prefer to spread the responsibility of funding government over a wider group of people? What is a more stable foundation for anything; something that is an inch wide and a mile deep or something a mile wide and an inch deep? Spreading the responsibility over a wider range is truly COMMON SENSE!
Tuesday, July 12, 2011
Federal Budget Debate Really Not That Hard…it’s simple stupid!
There has been a seemingly endless debate about the Federal government budget, debt and spending cap that has dominated the news. I hate to think about all of the money that has been wasted on endless studies and “expert” economists to try and come up with an solution to the problem.
Based on all of this chatter, discussion, debate and brain power, you would think that this is an insurmountable problem. Well I am here to tell you…it’s not. Forget about all of the battles and numbers and boil the problem down to two pretty basic numbers and you can see exactly where the problem lies.
In the 50 years between 1960 and 2010 the revenue coming into the federal government is 20 times greater. In other words the dollars we took into the Federal government coffers is 20 times the amount of money that we took in back in 1960.
The other number is based in that same 50 year period…spending by the Federal government in 2010 is 42 times! greater than it was in 1960.
If you can’t figure out what the problem is, based on those two basic numbers, you’re either not trying, you’re lying or you’re stupid. It’s really that simple.
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