For the last couple of days, the National Governors Association has been meeting and the consensus is clear: the governors aren’t happy with Washington. Unlike the federal government, most of these governors are forced to balance their budgets year-in and year-out. While these governors are trying to balance budgets, Obama and the Democrats continue more spending burdens on the states like new ObamaCare unfunded mandates. Democrat governors are particularly upset with Washington because they managed to sell hope and change, but failed to deliver any jobs to their states. What else did they expect with an anti-business Community Organizer with zero business experience in the White House?
As the governors grumbled the co-chairs of PrezBo’s debt and deficit commission addressed the crowd and offered a painful truth: our nation’s fiscal future is on the fast-track toward disaster. Erskine Bowles, one of Clinton’s dogwashers, compared our current federal spending habits to a cancer. He says that the current budgetary trends “…will destroy the country from within’ unless checked by tough action in Washington.” To put it into perspective check out this for a sobering reality ….
At present, available federal revenues are fully consumed by just three programs: Social Security, Medicare and Medicaid. “The rest of the federal government, including fighting two wars, homeland security, education, art, culture, you name it, veterans, the whole rest of the discretionary budget is being financed by China and other countries.”
— Former Republican Senator Alan Simpson of Wyoming, co-chair of Obama’s debt and deficit commission.
Is it starting to dawn on you? This country is well on its way to a major crisis. OK … maybe the 2008 mortgage disaster managed to sneak up on you .. but this debt crisis is staring us right in the face. As Bowles says, “This debt is like a cancer.” But rather than treating that cancer, our federal government seems content to continue doing everything it can to make sure it kills us faster and sooner. Bush, Obama and the Democrats have managed to grow the size of government and the levels of spending … these were all things that fed this cancer, rather than nippin’ it in the bud.
Business-friendly policies (like the FairTax) could definitely help get us back on track. But recommendations from Obama’s debt commission will not solely focus on spending reductions and business growth … the focus will be tax increases. What kind of tax increases? Well … try these four ideas:
1. Reducing the home mortgage interest deduction.
2. Instituting an energy tax like Cap and Trade
3. Adding the Value Added Tax to the taxes we already pay.
4. A financial transaction tax on top of everything else
Are you ready for these wonderful new ways for government to seize ownership of even larger portions of your life? And guess what? Perhaps the Democrats can get all of these wonderful ideas passed and signed by Obama before the new congress arrives in January.
Be afraid of the lame duck congress and it’s agenda. Be very afraid.