12/6/12 NYA Letters to the Editor

Electorate needs ‘tough love’ on Obama’s plans

To the editor:

It was great to see the side by side letters last week by Mr. Swee and Mr. Wickenhauser. Each writer was calling into question two different levels of government spending. This is exactly what needs to be done on a consistent basis going forward. Now more than ever, citizen watchdogs must scrutinize and monitor the use of their tax dollars. The recent Democrat victories will undoubtedly give them renewed vigor in what they aspire to — grow government, spend money and play class envy.

This theme is playing out nationally as talk over the “fiscal cliff” is unavoidable. I submit this has happened because we have leaped over the “morality cliff” long ago. Government spending has far outstripped its revenue and there is no indication that Obama and his leadership want to curtail it. The entitlement costs of Medicare/Medicaid and Social Security stand to crush what little economy we have. Businesses are already trying to avoid the soon to be reality of Obamacare.

The Bush tax rates will expire at the end of this month. The Democrats want to preserve the existing rates except for the top 2 percent. This potential increase in tax revenue is calculated to be $90 billion.

The 2013 budget is $3.8 trillion. This means that the increase in revenue ($90B) for a $3.8 trillion budget represents a savings of $1 for every $42 spent. This is a debt spiralling out of control. On Friday, Nov. 30, 2012, Treasury Secretary Tim Geithner proposed that the nation’s debt ceiling come under White House control without limitations!

Another proposal by the President is to increase taxes now and get control of the spending “next year.” I’m sure we will soon hear of a QE-4 “stimulus package” also. As long as meaningful spending cuts are off the table, this lopsided approach will not solve the problem.

There also is talk again about Congress modifying tax law enabling them to go after your 401Ks, IRAs and Roths.

You, the responsible investor, have received a generous “subsidy” from the government and now it must end, some say. One plan calls for a government sponsored annuity based on the 2008 level of your portfolio.

There is also renewed interest in excluding deductions for home mortgages, charitable donations, child credits, returning the 2 percent payroll tax and expanding the AMT. The Democrats like to call these legal tax provisions — “loopholes,” as if you are doing something illegal.

The goal for Democrats is to constantly grow government. Any new tax revenue that will come forth will be used to increase spending and redistribute wealth. The Democrats are not serious and the Republican leadership ought to put meaningful spending cuts on the table. If the Democrats balk, then walk away. Let them carry out their suicide mission alone.

I believe the electorate needs some “tough love” to finally realize what Obama meant when he promised “transformational change.” No matter the outcome, the Republicans will get the blame. If the President is serious about the “cliff,” why is he leaving next week on a 20 day vacation to Hawaii? What must the taxpayers think when he swipes their credit card for the estimated $4 million cost?

The Democrats are up to their old tricks. Why should we accept the premise that “wealth classes” are in opposition to each other? Can only one benefit at the expense of the other? No! This incessant class envy must stop. There was a President back in the 1980s who proved economic benefits for all wasn’t mutually exclusive.

The Republican leadership must return to that philosophy. I believe we will have a series of unavoidable challenges to negotiate for the next few years. One can only hope that the economic engine of the nation is not permanently pushed over the cliff.

Joseph Polunc