Comments on: TARP may pay down debt Option ARMageddon Tue, 14 Oct 2014 13:06:34 +0000 hourly 1 By: Michael Shircliff Fri, 13 Nov 2009 16:29:50 +0000 We borrow money for all federal spending.

The right would argue that buying military programs on credit is a symbol of our strength and might. No taxes are good taxes, and we can borrow ad infinitum to pay for things, and future generations will pay for them.

The left would argue that using that credit to buy a social program is a better use of credit and we can keep creating new social programs and future generations will pay for them.

The far right, and the far left believe we can continue to make minimum monthly payments and we’ll be ok whether we buy guns or social programs.

Someone in the middle might say, isn’t real economic might and strength the ability to pay for it yourself upfront without resorting to expensive and costly credit that future generations have to pay for?

Someone in the middle might say, hmmm…I like living in a country that can protect itself and that has a strong military, and I like social programs that help others, and that increase the quality of life for all of us, we need both.

This idea that you can simply keep cutting taxes gets you in the position of not being able to pay for the things our society needs.

It’s a simple equation, keep lowering taxes, and we have less money to pay for things our society needs for the purchases of the left or the right.

If we have to rely on credit to get the things we need, somebody in the future has to pay for it.

Eventually, they are so busy paying off someone else’s debts that they don’t have the money for the things people on the left or the right of their generation need to provide a good standard of living.

Then, they have to make hard choices about what they going to buy on limited credit, one or the other. That is where we are now… Arguing about what we are going to use our credit cards for, rather than paying for everything we actually need to have a good standard of living.

America is now simply printing money to pay even the minimum payments and has limited credit to pay for the necessities of living in a great society.

Someone in the middle might think “You can’t keep lowering taxes and having all these spending programs on both sides of the isle, because then you aren’t taking in enough revenue to pay your debts without resorting to long term credit.

Could it possibly be that we should fix our tax system so we can pay for things we need now, rather than buying things we can’t afford on expensive long term credit.

Could it possibly be that the ideologies of the far left and the far right are false arguments that only empower the politicians on both sides of the isle to continue spending money we don’t have?

Someone in the middle might think: Face the problem. We aren’t taking in enough revenue at the federal level to pay our bills.

Fix the tax structure and make it fair. Remove the lobbyist’s power over politicians by removing the politicians’ ability to create tax loopholes for corporations and individuals. Set a flat tax with no loopholes high enough so that we could pay off our national debt in a few years, and then because we know what we are taking in, we know what we can afford to spend as a country on programs for the left and the right.

Then when the debt is paid off, we would have positive revenues coming into the treasury which we could then use to rebuild our military and our social programs, and create jobs, and increase our standard of living.

If America keeps buying things on long term credit and continues to pay the minimum payments by simply printing more money like we are doing now, eventually, we won’t be able to pay the minimum payments for the programs of the left or the right, and our standard of living and economic might and power will be truly gone,
unfortunately, so will our ability to do anything about it.

The America I am so proud of consists of both the left, the right, and everyone in between, and standing together, we can address the problems of our country, and we can continue to believe in things like “Freedom, with Liberty and Justice for All,” rather than just the far left, or the far right.

By: Jim Fri, 13 Nov 2009 04:27:43 +0000 Instead of a 5% cut, make it a 10% spending cut, across the board, paired with a 5% tax cut, again across the board. Do this again over the next few years, until the debt is paid off, at which time have one more across the board tax cut that brings the incoming tax revenue down to the current budget level and freeze the budget and tax levels at that point.

This simultaneously deals with the high debt and need for economic stimulus.

By: Rick Thu, 12 Nov 2009 18:39:49 +0000 “but is considering setting aside a chunk for debt reduction” — really? The funds won’t even be enough to pay the interest on the debt.

By: no-friends Thu, 12 Nov 2009 16:24:25 +0000 Good luck getting a 5% reduction in pay through the AFGE fed employee union. Any cuts will come from funding used for science, R&D, hardware, anywhere but govt salaries & benefits.