Tuesday, July 19, 2011

$4 Trillion in Cuts Plus $1 Trillion in Taxes

In our world of political compromises, the latest attempt to raise the debt ceiling calls for $4 trillion in cuts and $1 trillion in new taxes.

So let me get the straight: there are politicians that want to go on record for increasing taxes $1 trillion?

I really don't see it. I don't see any Republican who hope to keep his/her campaign promises or hopes to run for re-election signing off on this.

In the great poker stakes that this is, I would not cave. I would not vote for this massive tax increase. I wonder how many Republicans will fall for this? Will claim it is the best thing they could do given the politics? Maybe. But when you run on a no-new-taxes campaign, you must stick to your guns.

The bottom line is this country is broke. Even after $4 trillion in cuts over many years, the tax burden will continue to weigh on the economy. We are still talking about raising a debt ceiling. Monetary policies will continue to devalue our currency.

This will be a surgical dressing on a botched surgery.

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