GROW UP, AMERICA!

We cannot grow as a nation by using draconian “slash and burn” tactics. We need to reduce our budget deficit, but we have to do it rationally and incrementally.

In order to balance a budget, income (revenue) must equal outgo (spending). It’s that simple.

There are three ways to balance budgets: 1) cut spending until spending equals income; 2) increase income until it reaches the spending level; or 3) move both bars—spending and income—carefully and critically.

Some believe the first option is the only one. They are either ill-informed or not concerned about the implications of drastic cutting on the American people, its economy, and its future.

Option #2 could easily be accomplished by just increasing taxes at all levels—personal income, corporate, Social Security and other payroll taxes, excise and estate taxes.

The only viable, adult option is the third one. It takes grownups, though, to critically analyze both spending and revenue resources, while protecting the most vulnerable and creating a climate where businesses can thrive.

It can be done.

America’s income (revenue) comes from the following: Individual income taxes; Corporate income taxes; Social Security and other payroll taxes; Excise taxes; Estate and gift taxes; Customs duties; and Other.

America’s spending (program costs) is divided into two main categories: Discretionary and Mandatory. Discretionary spending includes Defense and Other. Mandatory spending involves Social Security, Medicare, Medicaid, Troubled Asset Relief, Jobs Initiatives, and Other. The final category (Other) includes interest paid on debt and potential disaster costs.

Recent actions that affected any of the items listed above (all involve revenue sources):
• continuation of the Bush Tax Cuts for all income levels
• estate tax cuts;
• corporate income tax incentives; and
• reduction of the Social Security tax for individuals

Each of those actions drastically reduced our revenue resources, which effectively increased our deficit.

That left no choices—the only option at that point was to drastically slash spending. By increasing the deficit prior to complaining about the deficit, more spending cuts than were originally necessary had to be proposed.

This approach is the Republican plan. It’s been carried out at the state level (Wisconsin, Ohio, etc.), with devastating effects in many cases and is being continued at the federal level.

It’s time for the American people nationwide to stand and be heard!