With the Christmas
holidays looming nearer and nearer, record breaking shopping on Black Friday
and predictions for Cyber Monday; the economy seems to be doing well. However
the Bush-era tax cuts cease to exist in the upcoming year and as usual both
parties are arguing how to deal with the “fiscal cliff”. Now that the elections
are over it is time to get down to business.
President Obama’s plan
to avoid another economic recession is to keep the Bush-era tax cuts for all
American families that bring in less than $250,000 annually but raise taxes on
those that bring in any more than that. Republicans on the other hand want tax
cuts for all Americans across the board and are suggesting looking at
entitlement reform instead of tax increases. With Medicare and Medicaid
counting for almost 50% of spending, I think we need to take a deeper look at things.
If tax increases are
put in place, the middle class that supports much of the economy, would start
spending less as a result of the increased taxes and we would spiral back into
an economic hole. With many people abusing Medicare and Medicaid because they
are lazy, the whole idea has almost become pointless. As a result of cutting
Medicare and Medicaid, many Americans might actually have to get up and go get
a job. What a concept! Don’t get me wrong, we shouldn’t completely cut Medicare
and Medicaid because they are beneficial to those who actually cannot take care
of themselves for many different reasons. But there defiantly needs to be large
cuts and revamping to the qualifications to apply.
President Obama said that
“failure to accept his offer for a limited extension of tax breaks will
essentially ruin Christmas for consumers and retailers”, but his plan doesn’t say
anything about entitlement reform. That is the key to this whole problem. Not
tax increases. That will just make it worse. If the Republicans and Democrats
in Washington don’t start agreeing on something soon the “fiscal cliff” that everyone
is worried about is going to happen right before their eyes. You would think
that after watching Greece’s economic disaster, we would do anything and
everything in our power not to go down that road. But it looks like that is a
possibility for the near future. We will see in the coming weeks if anything gets
done in Washington, and which path America is going to turn down. We don’t want
to be known as the country that followed in Greece’s footsteps.