President Obama continues to call for a “balanced approach” when it comes to raising the debt ceiling. In fact, he did so seven times during his primetime speech to the nation this past Monday. So what is the president’s idea of a balanced approach?
Well we know he continues to call for an increase in revenue which is simply Madison Avenue speak for raising taxes. To many Americans this probably sounds like a good idea, we just need more money so the government can meet its obligations. But where will that money come from?
According to the president it’s going to come from those evil rich people making more than $250,000.00 per year. They can afford it, they all own private jets and are not paying their fare share. The problem is that the president’s math does not work; you cannot raise more than a trillion-dollars in revenue by only taxing those that make more than $250K per year.
According to factcheck.org roughly two-percent of American households earn more than $250K per year. The latest census data estimates that there are slightly less than 130 million households in America. So if you multiply that by two-percent you come to about 2.6 million households earning $250K. To get to the president’s magic number of $1.2 trillion you would have to tax each one of those households an additional $461,000.00 per year – the math does not work.
Just over half of America pays any federal taxes to begin with so where is all of this money going to come from? By taxing the middle class. It’s the only way you can make the math work by only increasing revenues. So what President Obama means by a “balanced approach” is that we (the federal government) are going to steal (tax) more of your hard earned money to pay for all my failed initiatives.
The president even had the audacity to bald-faced lie to senior citizens on national TV when he said that the government would not be able to pay its bills which includes Social Security and veteran’s benefits. As HotAir.com and Mark Levin point out, Social Security will simply sell some of the treasury notes it holds in the trust fund to pay for its liabilities and checks will go out as usual.
If Obama really cared about the economy he would agree to the budget cuts that have been proposed by congress and support the Cut, Cap, and Balance Act. That’s what everyday Americans have to do so that they can pay their bills when times are tough. In 2006, then Senator Obama had this to say about raising the debt ceiling:
“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. … Increasing America’s debt weakens us domestically and internationally. Leadership means that “the buck stops here.” Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.”
So what has changed in just a few short years? History has proven that increasing taxes will cause even more harm to our anemic economy. As a matter of fact, most economic indicators are now worse than they were during the Great Depression and our president wants to double down on policy that has proven to make matters worse. One can only wonder why?
For a list of the proposed budget cuts, you can see them at the Huffington Post. In my opinion they could probably find another trillion or two to cut.