How do you pay off the debt by cutting taxes?

How do you solve the federal deficit problem by cutting taxes? President Obama wants to extend the Bush tax cuts for the middle class or those making less than $250,000 per year. While personally that would be fine with me, I don’t see how that helps the economy.

It just means someone else’s taxes have to be raised and the government has to keep on borrowing money and the debt gets bigger.

If taxes can or should be cut then why not cut them across the board?

But if government revenue is cut there will likely be losses in the infrastructure and support mechanism that provides the foundation for the private economy.

There is waste in government that is always ripe for cutting, but not everyone agrees on what amounts to waste, although various forms of obvious waste are often pointed out in news stories.

The uncomfortable truth is that taxes probably have to remain as they are or, actually, the Bush tax cuts should be allowed to expire, while efficiencies in government have to be increased, and like it or not, a goodly portion of that revenue should go to servicing the debt.

(The whole notion that the Bush tax cuts were to be “temporary” was dubious. And is letting a tax cut expire raising taxes? It is all very misleading, and meant to be so in the game of politics.)

Whether by constitutional amendment or a change in policies, congress should not be able to increase spending without first identifying a revenue source and deciding what has to be cut when offering a new program or how much taxes have to be raised to pay for it.

Deficit spending has its perils, look at what is happening to our country and what is happening in Europe.

There is no free money.

What the nation needs is sound fiscal policies and regulations for both government and private business, with an emphasis on production of real things and the providing of valuable services, as opposed rampant speculation in a boom and bust business cycle.

At this time neither President Obama nor his opponent Mitt Romney seem to offer that, although Mr. Obama may in some ways come closer to the mark.

It is hard to know what Mr. Romney really offers because he has spent so much time pandering to whomever he thinks needs pandering to at the time.

Romney we do know, however, wants to make sure the rich have their taxes cut, for they are, he claims, the “job creators”. His record as a rich businessman, however, seems to belie that. He got rich via the private equity firm and hedge fund route, in part, by gutting companies and cutting jobs and/or sending them overseas.

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One Response to How do you pay off the debt by cutting taxes?

  1. lssm11 says:

    Very good analysis not sure I can agree with all the points you made.
    Many of them are worth considering. WE should all be concerned about the state of our debt.

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