Tags: | tax | rate | increases

Falling Off the Fiscal Cliff Is Necessary to Save America

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Monday, 03 Dec 2012 07:45 AM Current | Bio | Archive

At some point, buying more goodies, giving away more money, supporting more people, creating ever-larger financial obligations and allowing more theft, fraud and waste becomes unsustainable.

What do you do when someone spends all of your money and is rapidly maxing out every avenue to borrow on your credit?

You stop them before you are utterly and unredeemably destroyed.

Unfortunately, this is what is happening to all Americans by the federal government.

In the financial sense, the United States is reaching the end of the line. The government spends 40 percent more than it taxes. A significant proportion, if not most, of Americans, justifiably, do not trust Congress or the administration.

The country is now facing what some describe as a government-created financial disaster.

This is the fiscal cliff that is being hyped by politicians, pundits, investment experts and news talking heads.

Washington is facing both marginal tax-rate increases and, apparently, real spending cuts. Both political parties are doing their usual Kabuki dance trying to convince the voters that they are working hard for the American people.

None of this is really necessary, as to the tax rates and making the "rich" pay income tax and the non-rich be non-taxpayers.

That's what the alternative minimum tax does. It's a flat-tax system that phases out deductions. And only the "rich" pay it.

That may take care of the tax side, but not the spending side.

It seems that there are two choices: one, keep on doing what has been done before; or two, stop and do nothing.

As to the first choice, what happens when Washington reaches a "compromise" and "makes a deal?"

Clearly, the U.S. economy, as well as its social and political fabric, would continue to disintegrate. It's only a matter of time before the U.S. dollar is recognized as valueless, divisions between the people widen and politics are completely controlled by demagogues.

Already the taxing power is being used as the preferred weapon of choice in establishing and enforcing policy. Claims of “fairness,” “equal sacrifice,” “leveling the playing field” and “the right thing to do” are all used as justification for governmental actions taken that are otherwise indefensible.

While some in Congress and prior administrations have tried their best to repeal and replace the existing income tax system, all that has happened is that the enforcement efforts and the criminalization of tax, financial and everything else touched by the government (like geese glancing off a puddle of water) has expanded at an exponential rate.

Why control spending when the limit on borrowing is merely a perfunctory formality in practice.

Absolute control of every aspect of our lives is made possible, not by force, but by legalism.

The Land of Liberty is evolving just as George Orwell envisioned in his book "1984."

What happens if we do nothing and go over the fiscal cliff?

Congress and the president will hit the wall of reality. The alternate and delusional universe they have been in for decades will suddenly grind to a halt.

Tax rates will go up. The consequence of that will be either the Laffer curve is proved right or upping the rates will actually generate more tax receipts.

Congress and the president will be forced to prioritize. The unlimited amount of money that fuels political power will stop flowing as if there is no end.

It seems that Congress and the president created the fiscal cliff just so they can compromise, make a deal and continue business as usual.

Going over the fiscal cliff, however, is the way to save America from the folly of its own political leadership.

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Kleinfeld
At some point, buying more goodies, giving away more money, supporting more people, creating ever-larger financial obligations and allowing more theft, fraud and waste becomes unsustainable.
tax,rate,increases
601
2012-45-03
Monday, 03 Dec 2012 07:45 AM
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