Fiscal Cliff? I Don’t Think So.

The fiscal cliff is no cliff at all. People on both sides of the aisle who want to see a responsible government live within its’ means should embrace and encourage the changes in the law.

What the Washington Post refers to as myths are, in my opinion, exactly what is needed to stop the bleeding. What does the current law do (based on both the Wikipedia article and the Washington Post article)?

  1. More people will be paying more in taxes. As much as I hate an increase of revenue to the Federal Government, if we’re going to balance our budget, this is necessary. But here’s the point – *everyone* needs to pay into the system. Every American who earns an income should pay into the system. This law, as it stands now, will cause many in the lower 50% to pay *something* into the system. I think this is good. You can’t have 50% of Americans not paying any Federal Income tax. That’s too progressive, IMHO.
  2. Spending cuts are necessary if we’re going to stop the bleeding. That means less government services. That means defunding some programs – both in defense and in discretionary spending. $1T over ten years? That’s $100B/year. On $3.5T of annual spending, we can’t find $100B to cut? Really? I bet I could find that just in the defense department. I *know* I could find it in the social programs. We’re talking about cutting 3.5% of spending. That’s not going to hurt anyone and frankly, should be done anyways.

Going over the cliff is what we need. More people paying more taxes, real cuts in spending and the realization by all that this cliff is mostly hype without much substance: I see this as a good thing.

What we should really be concerned about is the $1T+ debt we’re adding to our national debt each year. That’s the real problem. Either *all* Americans need to pony-up and pay their fair share into the system to stop the bleeding or we need to cut $1T+/year out of our spending, or both.

The real danger is in doing nothing or too little. Without economic strength, we won’t be strong militarily and we’ll lose our sovereignty to another nation – a nation that will take away our freedoms, plunder our resources and care little about our social programs. The Bible says that the borrower is servant to the lender. God isn’t kidding. So, we can go without some services today or without all of them tomorrow. But either way, the party is ending.

Bill English, CEO


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