To Tax or Not to Tax?

The burning question in Washington, currently, is about the Bush-era tax cuts. Some say continue for all, others say continue for all but the rich, and others say don’t continue any of the cuts. We are spending about $1.2 trillion a year more than the federal government is taking in from taxes. I may not have my calculations correct, but I believe that, by letting the Bush tax cuts expire, we will generate about $200 billion of added revenue each year. That still leaves us will a $1 trillion shortfall, which suggests that spending must be cut substantially as well. The reason we hear most often for not allowing the tax cuts to expire is that spending by consumers would be cut (less money to spend) and the economy could slow down. The same rationale is given for extending the federal job loss benefits for an additional 13 months, which is another big expense. Recent studies have pointed out that some of the increasing joblessness is caused by the continued extension of jobless benefits, which has allowed people to hold off getting a job for a lengthy period of time, and during that time, their job skills erode. As I look at the substantial sacrifices that the people in Greece, Ireland, Spain, and Portugal are having to make to get their countries back to financial stability, I keep thinking that we need to move quickly to avoid taking draconian measures later! None of us likes taxes or cutbacks on entitlements, but without financial stability, life as we know it in the U.S. will change significantly. In looking at the suggestions of the bipartisan deficit reduction committee that was established by President Obama, it seemed to me the entire document should be adopted! My burning question is: can the politicians put politics aside and do what is necessary for the long-term economic health of our country? Our founding fathers sacrificed to put us on the road to greatness. Let’s not exit that road now. Ed Mallon