Got a call and was joined onto Congressman Frank Guinta’s TeleTownHall event. In listening to some of the others, a couple folks had some things to say that, of COURSE, I have opinions on:
- Al basically said to just tax the rich; they need to pay their fair share. Well, All, using the latest numbers from the IRS (who would tend to know about these things:
- top 1% pays 40% of all income taxes
- top 5% pays 60%
- bottom 50% pay 2.7%
- you could take ALL of the top income earners income and you’d still be caught short, deficit-wise – there just aren’t enough rich people to do what Al would require.
- Against all that, position the fact that Obama has raised spending 30% since the beginning of his Presidency – what’s the fairness in that
- John said to cut foreign aid. However, it only makes up 1% or 2% of overall budget which is not going to make a huge dent in the defict. That said, I’d take EVERY single 1% thrown my way.
- Gerald thought it most unfair that Exxon and Mobil not paying taxes; Frank countered with GE. Frankly, neither mentioned that these kinds of taxes are not paid by corporations anyways – we do in the form of higher prices. In the case of the oil companies, what is not often known is that GOVERNMENT actually gets more per gallon of oil in taxes than the oil companies actually get in profit: 43 cents / gallon in taxes vs 8 cents in profit. I really do wish that people truly understood the difference between profit and marginal profit. Vs the mooching capability of politicians….
- Frank also wants to know how folks feel about the Balanced Budget Amendment. I have a REAL serious concern as it can be gamed as well or as easily as any other stricture Congress has laughingly placed on itself. Any additional spending can be balanced – all ya gotta do is raise taxes to meet that! So my concern is how the rise in spending will be curtailed – THAT is more important than the taxes raised.
I never got to ask my question, but it was concerning with what I know about the latest Boehner Plan in that it is a two step process:
- $1.2 Trillion in discretion spending over 10 yrs ($120 Billion / year)
- Raise debt ceiling by $1 Trillion NOW
- Convene a special committee to cut $1.8 Trillion in the FUTURE ($180 Billion / year)
- Debt limit then goes up $1.6 Trillion AGAIN!
- BBA vote
- Does not touch Obamacare funding, Medicare or Social Security
- Slips in a modified McConnell feature – debt ceiling can go up WITHOUT a vote.
- Outlay reduction for FY 12 – $25 billion cut in discretionary spending.
- Budget Authority in FY 12 is $ 7 billion less than FY 11 in discretionary spending.
So here are my concerns, Congressman Guinta:
- We have had 2 years of $1.5 Trillion; this year again ($4.5 Trillion overall)
- The above ONLY saves, round numbers, $300 Billion per year – leaving a deficit STILL of $1.2 Trillion per year – WHAT THE HECK?!?!?!
- We’ve had these situations before – the Democrat spenders get to spend more NOW; the "promised" cuts never happen (er, remember that last Continuing Resolution that ended up with bare millions vs the stated Billions?). WHY are we doing this again? Where is the "verify"?
- Hey, where is the plan to PAY THE DEBT AWAY?? NO one is talking about how our kids and grandkids are supposed to pay this down….
I agree with Jerry Delemus (quoted in the LA Times):
DeLemus says it’s simple: Cut spending and don’t raise taxes.
"I want to see them hold the line," he said. "Stand firm. They were sent to do a job — do that job.
Hold the freaking line!!!!
