Sunday, May 20, 2012

Spending Cuts first, tax hikes later

Congressman Ryan of budget fame was on Meet the Press this morning.  David Gregory and some democratic senator were all over him for dreadful budget cuts, "austerity" and the need for a "balanced" (i.e. tax hike) approach.  Ryan replied that his budget still spent 3% more than last year, as opposed to Obama's budget which would spend 4.5% more than last year.
    Ryan will spend 3% more?  With the economy growing at less than 3%?  Arrgh. 
    Remember that real cuts only occur when we spend LESS than last year.  If we spend more than last year, they are fake cuts.  Ryan is proposing fake cuts and the dems are still trashing him.
    Once we grant a benefit to some one, its nearly impossible to take it away.  So just to prove we can do it, we need to do some cuts.  Only after we cut the Federal budget back to 17% of GNP will I consider raising taxes to balance the budget.  If we cannot do the cuts in Congress, let's allow pure lack of dough to do them for us.  And pure lack of dough is coming. 
   Any tax hike just delays the necessary cuts. 

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