Tax Cuts Win Passage, Debt Increases Another $850 billion

I like tax cuts. I really do. It feels like in general, we can spend our money better than the government. That said, this latest “bipartisan” deal to extend the Bush tax rates and unemployment makes me wonder what was actually compromised? Both parties got what they wanted. Nobody took a hair cut… nobody. Well that’s not completely true. The deficit took one on the chin to the tune of $850 billion. Why couldn’t we pay for this $850 billion in some way? Even a plan that would have payed for it over 5, 10 or even 15 years would show that our government is serious about the debt. Instead, we have more of the same… spend and cut taxes with borrowed money.

Is anyone else concerned?

Glenn

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3 responses to “Tax Cuts Win Passage, Debt Increases Another $850 billion

  1. All we need to do is kill Obamacare and that would equal out the debt you are sooooo worried about all of a sudden.

    • Thanks for the comment. We appreciate the feedback. I’m not sure what you’re really saying here. Are you criticizing me for being for health care reform? (I didn’t like what was passed — I wanted a public option to compete with private insurance and no individual mandate). Are you saying I’m not fiscally responsible because I am a Progressive? As a charter member of the Concord Coalition, I have been worried about this debt looooooooooooong before the so-called “Obamacare” was conceived. This isn’t an “all of a sudden” concern for me. Yes, I like some government programs/spending, but I recognize the need to pay for them (like, for instance, by not having the Original Bush Tax Cuts or the Iraq War, two unfunded accelerators that led us into this problem in the first place). You could repeal health care reform right now, and it still wouldn’t bring down the debt or deficit or pay for these tax cuts — especially because most of the provisions passed that cost money don’t kick in until 2014. What you need to do to deal with debt and deficits is stop the hypocricy, and politicians have to talk honestly about the problems we face. They can’t give out candy — like Tax Cuts for Everyone!! — and then not pay for it…but then a few months later complain about the rise in spending and balk at raising the debt ceiling or not pass funding programs. If they were so concerned about fiscal responsibility or runaway spending, then they would have found the $1 trillion to pay for the extension of the tax cuts. Domestic discretionary spending, under REPUBLICANS, grew 80% faster than inflation from 2000-2008. So, if “Obamacare” doesn’t really kick in until 2014, if you’re not going to cut spending — especially defense, medicare and medicaid — and you want to give everyone a tax break (I’d prefer everyone who makes under $1 million to get a tax break, as well as small businesses, paid for by increases on those making $1 million a year or more), then how do you propose paying for it? Politically, it’s easy to give tax cutsto everyone, and it’s also easy to rip me for my supposed fiscal irresponsibility (not true), but until we all soberly recognize that we can’t have it everything and not pay for it — that we have to live within our means right now, not just at some point in the future — we’re just going to dig ourselves deeper in the fiscal ditch. I have a question for you: why was the Tea Party so quiet when it came to paying for the Bush Tax Cut extension? Where’s the outrage from the “fiscally conservative” Republicans?

      – Jeff K

  2. Completely concerned. I can’t deny that I will benefit from these taxes remaining that same (not tax cuts BTW, you can’t consider it a cut when it’s staying the same) as my tax refund will be nice and big and I will do my part by putting back into the economy. But while I might someday benefit from unemployment if I was to lose my job (God forbid) I am still against the idea of providing help that can last for so many years when it was intended as a back up for what might have been a temporary situation of unemployment. We can not create a society that will guarantee people money whether they work or not because a country can not survive in this fashion, it is simply impossible. Money does not grow on trees and the more we inject into our economy the less it’s worth, it’s simply economics. That’s why gold and diamonds are so expensive. Duh!

    This tax bill had to happen because in the end, as you guys mentioned on a previous podcast, in order for things to change for the better, everyone had to put everything on the table and be willing to accept that sacrifices will need to be made and that each side will gain some things and lose some. That everything was negotiable. This bill was an example of things to come.

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