As in the song "Lawyers In Love" we have a land, a nation with too many in high places willing to do anything for money neglecting people, honor and principle but a change is coming. No more falling for the lie of living only individualistic and independent lives leaving us divided and conquerable by powerful special interests but a people, a nation collaborating for the greater common good in various groups all across the nation. A land of people working together to help one another with a vision moreover as Jesus would have us be. Love, Mercy, Forgiveness, Kindness....something about another Land. The change is coming

Friday, August 05, 2011

Serious Tax Hikes & More Spending Cuts Needed NOW

The global uneasiness with the economic markets is primarily driven by the perception that the number one economy is not taking serious enough measures to restore it's viability. The magnitude of the 2008 economic collapse demands we take much more drastic but perfectly reasonable measures, historically, to re-establish the U.S. economy yesterday. The tiptoeing around about tax hikes and the Tea Party must come to a screeching halt.
We need to blow right through the feigning,fawning and fainting over discretionary tax breaks and loopholes straight into restoring President Clinton's economically successful tax rate meaning 39%for the wealthiest and 15% for the lowest income. In fact that probably is not enough considering the fall we have taken. Efforts to lower the deficit through lower taxes has historically proven less effective and especially in an environment like we have now. Revenues at this time must be raised with serious tax hikes and spending cuts as serious as in 4.7 trillion as President Obama originally proposed. The tax rate should actually be raised to 42% this year and in two years raised to 45% or 50%.
More on free trade later.

Now, this is August and as all market analysts know the market is vulnerable to market drops because volume is low when investors are on vacation(well established market seasonality that the movers would have you not realize so that they can shake you out). The lower the volume the more susceptible the market is to large singular moves but because the "failed" budget talks have preceded it there is real increased anxiety this time. If the U.S. does not take precautions quickly one can expect the market, U.S. and global to slide right into September at least and perhaps into the end of the year or farther. The bottom line is that keeping the Bush tax cuts is abomidibly stupid. The 2008 economic collapse resulted in the bankruptcy of virtually all U.S. banks of any significance - AIG,Lehman Bros.,Merrill Lynch, Morgan Stanley, Citibank, thousands of businesses, need I it go on. Had we not learned from history and taken the measures that we did the economy would have dove into a severe depression/complete economic collapse but the bailouts were not the whole answer. The whole answer is also following up this economic disaster with measures we have applied in our past economic crisis and make no mistake this is in the top 5 of the last 200 years. The government must set the backdrop for the near future so that businesses, although disliking taxes, will have a playing field with a real solution to put their record profits into.
We have become too complacent with business as usual during our two wars and we have tried to treat the economic collapse as business as usual as possible and the latest debt talks in congress have been painfully strained attempts to remain business as usual but business itself will wake up to face the day and realize there is no easy way out of this one.
Free trade is going to be a problem but we will do what we have to do. If everyone understands the problem and understands it is also in their self-interest to solve it we should be able to move ahead.

The price you pay now if you are anathema to larger government is the possiblity that you will in fact have larger government but that is the ironic price you pay for trying to virtually eliminate government and it's oversight that earlier in the decade would have stopped the corrupt mortage practices that gave us the 2008 economic collapse.

We all have to pitch in now.

1 comment :

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