Only $160 Billion

I have been letting this one marinate for a few weeks now, but I could not wait any longer.

Turn on any news channel, and if they are talking about politics at all, you will probably hear something mentioned about either the “Buffett Rule,” which would set a minimum tax rate for the wealthy at no less than 30%, or about letting the “Bush Tax Cuts” expire. The argument against both is that the amount of money/income to the Federal Government is relatively small.

By relatively small, the people talking mean anywhere from $50 billion with the expiration of the tax cuts, to $160 billion with the Buffett Rule in place. Where I come from, both of those figures are nothing to scoff at. Yes, in the scope of a massive Federal budget, those are small numbers, but they are also a start.

For example, two and a half years ago, we opened a savings account and had nothing in it. But, we slowly and consistently put money in the account, and today we have way more than zero in the account. By the same principle, if the realized increase in funds is achieved by either of these proposals, you are talking about adding $50-160 billion per year to pay down the debt and reduce the deficit. Are either of these the primary answer? No, but they are a start.

If serious debt and deficit reduction is desired, there has to be more than just spending cuts. There has to be more income, and for our government, income comes in the form of taxes, for the most part. As regular citizens, we cannot pay off our debts solely by cutting our grocery budget; we also need more income. It is not as easy as that for a large government, but it is also not as difficult as some would make us believe.

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2 Responses to Only $160 Billion

  1. It seems like a no brainer, but the people with the money make the rules.

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