By Dr. Harold Pease
Lets see if I have this right. The President wanted to spend $3.7 trillion this year. Our total income for the year is about $2 trillion so that would leave a deficit of $1.7 trillion which will be added to the $14 trillion that is already placed upon the backs of my children and grand children, some not born yet.
Democrats wanted to cut $6 billion from this deficit, and thought that a hefty amount, leaving only $1.64 trillion for my children and grand children to make up latter, raising the national debt to over $15 trillion by years end. Not to be outdone, Republicans in the House and Senate wanted to reduce the budget by $61 billion leaving only $1.09 trillion to borrow from Communist China or elsewhere to be added to the $14 trillion national debt, making it in excess of $15 trillion by the end of this year. Democrats pat themselves on the back for taking a cup of water out of the Pacific Ocean and Republicans gloat when taking a mere bucketful of water from the same ocean.
So the parties went to war over the issue and compromised at $38.5 billion, which still leaves us in excess of $15 trillion in debt by years end. Well-done guys! Your final agreement was about the equivalent of a one-day deficit reduction. I am having difficulty understanding why this wasn’t a sell-out to my children. In fiscal responsibility both parties proved themselves inept.
We have the normal three solutions: tax more, inflate more, and cut more. We could double our taxes but that will destroy our incentive and resources to create jobs. We could inflate the dollar making every dollar already earned worth less. But that will rob those on fixed incomes and seriously damage the lower classes who don’t have the money to purchase gold or silver to ensure the value of what they have saved. Yet the Federal Reserve did just that last December when they, with President Barack Obama’s authorization, began printing and distributing $600 billion, all by June 1, 2011. Or finally, we could cut half the free or subsidized “non-essential” programs and live within our means. That is the most realistic as long as it isn’t “your” program that is cut.
Dare I suggest a fourth solution? The Internal Revenue Service just revealed that 45% of U. S. households paid no federal income tax last year and the year before it was 47% who had not. Are we becoming a two-class society—those who pay taxes and those who do not, with the non-tax payers still receiving generous subsidies from the pockets of those who do? Worse, those who are taxpayers are denied these same benefits their less productive neighbors receive. We all have able-bodied friends who chose not to work. How often do we hear of friends who won’t work because they get enough on unemployment or that they might, in fact, make less by working?
Why should anyone be exempt? Don’t we all use federal services in some way? In fairness shouldn’t we require everyone to pay federal income taxes even if less for the poor? Why do we assume that they should be exempt? Even the widow paid her mite in the New Testament and was subsequently praised (not excused) for having done so by Christ himself.
All “freebie” benefits that the poor received during the preceding year should be added to their salary in this calculation. When they know this up front they may elect to opt-out of the benefit so that it doesn’t put them in a higher tax bracket. When the “poor” pay federal income taxes they are vested in the system and hypothetically more responsible. When they do not then the issue of taxation becomes meaningless to them. “So what if taxes are raised, it does not affect me!”
When the non-taxpayer class (presumably the poor) reach 51% of the population they become the majority class and will never reduce the taxes on the “rich,” which will always be defined as anyone making more than they do. The working tax payer class becomes the new slave class. Eventually when the “rich” are destroyed as a class, as happened in the U.S.S.R. under socialism, all become slaves and poor. With everyone participating in the tax burden, it is harder to gain support for tax raising issues, thus saving billions and the payment of taxes by non-taxpayers, the “poor,” helps reduce the national debt.
Dr. Harold Pease is an expert on the United States Constitution. He has dedicated his career to studying the writings of the Founding Fathers and applying that knowledge to current events. He has taught history and political science from this perspective for over 25 years at Taft College.