Who Needs a Do Nothing Stupor Committee
11/22/2011 12:44 PM PST Palm Springs, CA
We are now more than $500,000,000,000.00 in debt than we were 4 short months ago…
For anyone who hasn’t been watching the news lately, this might come as a surprise, but our Federal Government is approximately $15,000,000,000,000.00 that’s 15 TRILLION dollars.
http://www.usdebtclock.org/
Now we can point our fingers and blame this party or that party, this President or that President, this “class” or that “class”…all of which does nothing to the $15,000,000,000,000.00 that’s 15 TRILLION dollars of debt that we find our Federal Government in.
We can talk about ways to fix the problem, some say tax the rich, tax the oil companies…tax anything and everything some people think that’s the cure. Others say cut spending, cut spending to subsidies, cut spending to foreign aid, cut spending to Social Security and Medicare (something has to be done with these programs before they implode).
I’ve seen many say that we should go back to the higher tax rates under Clinton (even he says it’s a bad idea) or Reagan. Now let’s not just breeze over this suggestion, let’s take it for a stroll shall we?
Under Reagan (Jan 20 1981 to Jan 20 1989) the highest marginal tax rate was 50% for five years before dropping to 38.5% for a years and 28% in the final years of his Administration. Under Clinton (Jan 20 1993 to Jan 20 2001) the highest marginal tax rate went from 39.6% in for the first seven years, then dropped to 38.6% in his final year in office. For the sake of argument we will drop the first year from each Presidents term since it basically was carry over from the previous administration, we will do the same a little later…
Our current highest marginal tax rate is 35%.
http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=213
Now here is where it gets tricky…I, as a conservative and taxpayer have a hard time dealing with a tax increase, it just doesn’t sit right with me. However, I suggest that we listen to those who want to revert back to the historical tax rates under Presidents Reagan and Clinton. Obviously going to the 1981 rate of 69.13% carry over from the Carter years needs to be taken out of the equation, but quick math gives us a rough average of 41%, 6 % higher than our current rate. I’ll bite, unfortunately I’m not currently in the highest marginal tax rate so it won’t bother me as much as the high earners.
Yes, I just agreed to raise taxes…shocking for most I’m sure, devastating for others, and sweet sweet music to the ears of others.
But…yes there is always a but…
Let’s also go back to the spending under these two Presidents. That’s right we raise taxes, AND cut spending.
Spending under President Reagan ranged from roughly $745,700,000,000.00 in 1982 (first full year in office) to $1,143,800,000,000.00 in 1989. Spending under President Clinton ranged from roughly $1,461,900,000,000.00 in 1994 (first full year in office) to $1,863,200,000,000.00 in 2001. The average Federal spending under Presidents Reagan and Clinton works out to $1,293,875,000,000.00.
In 2008 Federal spending was roughly $2,982,500,000,000.00, 2009 was roughly $3,500,000,000,000.00, 2010 was roughly $3,500,000,000,000.00, and 2011 will be roughly $3,800,000,000,000.00. The Federal spending average for the last 4 years is roughly $3,445,600,000,000.00 or roughly $2,151,725,000,000.00 more than and nearly TWICE that of the average annual spending seen under Presidents Reagan and Clinton combined.
http://www.usgovernmentspending.com/
The way I figure it, if we raise taxes to the average of the Reagan and Clinton years while spending levels during those same years are followed we will save trillions per year and payoff our National Debt in a less than seven years time. Of course that assumes that my plan doesn’t create a massive surplus which would quicken the pace and restore the economy to the wonder years seen under former Presidents, perhaps even surpassing those years. Then, once we are debt free we can cut taxes knowing that our future as a Country is secure and maybe even increase spending in a responsible manner.
Source: Mydesert.com (Palm Springs Desert Sun Comment Section)
