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.
I completely agree with you Megan. In your editorial you are talking about how both republicans are doing too much talking and not enough action. And inevitably the clock is ticking, we only have a month till we start the New Year and still no action is taking place. All I see is one side wants this and the other side wants that. There is still no in between point, no compromise.
ReplyDeleteAnother thing is what you said about how Medicare and Medicaid are being abused by the American people. I believe in actuality they should never be removed, like you I feel there should be some changes at least. Like a way to actually define who is eligible to gain these benefits. I for one have seen many people who are capable to do work and have the strength to actually get stuff done but decide to stay home because it is easier for them to gain that benefit. America in other words is becoming lazy. Actually no, let me rephrase that; the American PEOPLE are being lazy.
To be honest I feel that your comparison between America and Greece is very accurate. Greece was one a great empire; wealthy, prosperous, the people were happy. But then everything took a turn for the worst. And the great Greek empire started to crumble. And if Obama doesn’t act fast we too will fall victim to that economic down turn. Actually it’s not even all Obama’s fault. It’s the fact that both parties are acting like little kids playing in the sand box. One wants to build a castle while the other keeps throwing dirt in his face and destroy that castle he is trying to build. I’m sorry but America is not something to play with. They have to find a way to reach that compromise and fast no more lsmall plays. It’s time to throw that Hail Mary and hope for the best.