Obama’s Huge Tax Increase

Barack Obama is the first leader of this country to allow our credit rating to be downgraded. The US was downgraded by S&P to AA+ from AAA. The other credit ratings agencies have not followed suit but have indicated that they could. This downgrade comes because politicians refused to cut our debt by at least 4 TRILLION dollars, as the agencies indicated was necessary to avoid a downgrade.

The downgrade will likely mean higher interest rates for all of us on our credit cards, at the bank, and for any item we buy on time. This downgrade is a tax increase on us all. Barack Obama told us it would be:

This is not some abstract issue. These are obligations that the United States has taken on in the past. The Congress has run up the credit card and we now have an obligation to pay our bills. If we do not it could have a whole set of adverse consequences. We could end up with a situation, for example, where interest rates rise for everybody all throughout the country, effectively a tax increase on everybody. Guardian UK [emphasis mine]

When the debt ceiling fight was in full swing Obama warned us that failure to resolve it could jeopardize our credit rating and if it was downgraded the result would effectively be a tax increase on us all. Looks like we have that tax increase even though we raised the debt limit because we did not cut enough. The ratings agencies warned us and the bull headed politicians who went for the debt limit deal ignored them.

The Obama regime knew this was coming and has been arguing to keep it from happening. This is why Obama and his cronies were all out shouting that the TEA Party got what it wanted. They want the public to believe that the plan put forward is the one the TEA Party wanted so that they can blame the TEA Party for the downgrade. The fact is, the only part of the deal that matches with TEA Party desire is the part that involves no tax increase. I have already pointed out that there are going to be tax increases (the credit rating drop and the elimination of the Bush cuts) but no tax increase was directly written into the bill.

The TEA Party wanted greater cuts. The Ryan Plan, which was really cut, cap and balance, cut more than 4 TRILLION dollars which is what the agencies said we needed to avoid a downgrade. The TEA Party favored that plan and that is not the plan that was passed. The one that passed favored big spending politicians who will continue to spend but will ignore the required cuts. We will be 7 TRILLION more in debt in ten years because of what they did.

Seven TRILLION more is not a cut, period.

So don’t pin this on the TEA Party with phony slogans about being held hostage and guns to heads. If they had listened to the TEA Party members our credit rating would not have been lowered and we would have over 4 TRILLION dollars in cuts though one wonders if a future Congress would honor them.

Seems they only live up to the tax increase part of debt “deals.”

To top it off, Democrats are saying the credit downgrade means we need to raise taxes. They just got raised by the downgrade (ask Barack Obama) and they will rise again when the Bush cuts expire. That is not stopping the Democrats from trying to raise them even more. This is all they know how to do and now their buzz word is “balanced” as in a balanced approach.

To them balance means to add more taxes so they can spend more money we do not have.

Tell your members of Congress that we just got an Obama tax increase because he allowed the credit rating to drop and that we do not need more taxes. We need to make meaningful cuts that Congress will honor.

Absent that we will see the other agencies downgrade our credit rating and we will have even more Obama tax increases.

As an aside, Obama said we needed a deal to avoid the downgrade and Turbo-Tax Timmy Geithner said that there was no risk of us losing our rating. Both were wrong. Is it obvious yet to the Obama followers that he and his regime are incompetent?

Cave Canem!
Never surrender, never submit.
Big Dog

Gunline

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Hoyer Laments The Hole He Helped Dig

House Minority Whip (and moron from Maryland) Steny Hoyer said that we might not get the budget balanced for twenty years because we have dug ourselves a deep hole. The article quotes Hoyer as saying we went from a 5.6 trillion dollar surplus into a 5 trillion dollar hole. The article inserted the appropriate word after surplus, “projected”.

The alleged budget surplus never existed. It was a projection based on a number of gimmicks and based upon Congress doing certain things and taking certain actions, none of which they did. Even in the years where it is claimed that we had a budget surplus we had billions in debt so we were not out of any hole. To be clear, there was no Bill Clinton budget surplus but if you want to believe there was a surplus please be sure to credit it to the Republican Congress because they were in the majority.

Regardless, Hoyer has never met a spending bill that he did not like (or a tax he did not hike). He has been in office for a very long time and he has voted for all the spending that contributed to the problems we have but he is just now realizing that a problem exists.

It is amazing how Democrats become budget hawks when they are not in power but spend and spend and spend when they are in control. In any event, we can balance the budget in fewer than twenty years (or even ten) if the people in Congress will sit down and CUT the unnecessary spending and the waste. They also need to reform Social Security and Medicare which, along with unemployment insurance account for 35% of what we spend.

Younger people need to be allowed to invest their own money and gradually stop paying into Social Security and people who are closer to retirement need to be able to choose to either stay in it or get their money back and invest on their own (or some combination of these). Social Security needs to eventually go away and be replaced by a system where people have their money go to accounts that belong to them, cannot EVER be touched by government and can be passed on to their heirs when they die.

There are plenty of cuts that can be made and plenty of programs (many of which exist in multiples) that can be downsized, combined or eliminated to get our fiscal house in order.

If Hoyer is concerned about the hole that Congress (and that means people of all parties) have dug then he needs to get on board with the Republicans and push for the cuts so that we can get back to sanity.

We cannot spend our way to prosperity. If spending made us solvent we would be having high times because government has done nothing but spend.

The people in Hoyer’s District should have elected Charles Lollar. They were too busy suckling at the teat…

Cave Canem!
Never surrender, never submit.
Big Dog

Gunline

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Balanced Budget

I can so balance the budget, save America, and improve jobs exponentially. Just make me president:

Department of Agriculture? Gone.
Department of Commerce? Gone.
Department of Defense? Reduced by 75% (Bring all troops home and station them on the border).
Departments of Education, Energy, Health and Human Services, Homeland Security, Housing and Urban Development? Gone.
Departments of Interior and Labor? Gone.
Department of State? Reduced by 75%.
Department of Transportation? Gone.
Departments of Treasury and Veterans Affairs? Reduced by 75%.

Man, that would be awesome. Yeah, I like to dream of freedom and an America that’s free to advance and increase. The number of jobs that would appear (not “created” by government) would be astronomical.

Gunline

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