Sunday, July 10, 2011

We all need to do our part!

As we near an end of another Minnesota summer weekend big talks continue at the State Capitol and in Washington D.C. over how best to deal with budget shortfalls and increasing deficit spending. Nearly every one of us has had to tighten the belt strap over the past few years for one reason or another. Now it our governments turn. Yes, we need to pay the debts that we have incurred but is it the wisest move to just raise the debt ceiling to do so? Can we not pay our debts owed without raising it? President Obama is looking to strike a deal that is a "balanced approach"; one that increases taxes on the richest of Americans while curtailing spending over the next ten years. Both of these ideas are a joke. First, next year Congress or even in five years can change the plan thus wiping out any spending cuts that are agreed to today. Secondly, a balanced approach may need an increase in taxes but how about looking at everyone.

I get chided a lot on Facebook because my push for a flat tax or for equally out the tax burden as me forgetting my Middle Class roots and wanted to "kiss the butt" of the rich. Nothing can be further from truth. If the number is accurate that 47% of Americans pay no effective taxes on their income then that is where we need to start our focus on. I am not a big government guy nor am I am one to look to raise taxes but our tax code needs reform in a bad way. For far too long we have used tax credits, deductions and nominal interest rate changes to influence society while trying to raise enough revenue to keep the government running. The trouble is that if one has the means to hire the right person they can pay an effective rate that is much lower than the nominal rate. Since that is the case, why not institute a flat tax that has no tax credits or deductions?

This way our government would know, within a degree of error, on what our revenue will be from year to year and in order to increase that revenue we need real growth in the economy. Instead we'd rather kick the can down the road by increasing the debt ceiling every time we near maxing out the credit card. Does that work for your household? I hope the Republicans continue to stick to their no taxes pledge and force President Obama and Governor Dayton to face realities that we cannot spend like we have for the past thirty years.