The Fiscal Cliff
Two for Thought
By John Fuller
Beginning Jan. 1, 2013, Americans face a dramatic increase in their taxes that conservatives have begun calling “Taxmageddon.”
The expiration of the “Bush Tax Rates,” the expiration of the patch on the Alternative Minimum Tax, the expiration the payroll tax cut, and the increased taxation from Obamacare, will result in a 7.6 percent increase in taxes for the average Montanan.
That means the average Montanan will see their taxes increase by $3,713! These are not Republican numbers, but I.R.S. numbers. Obama wants this! Claiming that “millionaires and billionaires” need to pay their fair share, he has directed the Democrat-controlled Senate to foil any attempts to pass a budget and the Democrats haven’t passed a budget in over three years.
This writer doesn’t know how that kind of increased tax burden will affect Democrats, but he knows how it will affect him.
More importantly, it cannot be used to create more wealth. The next president of the United States must lead Congress to restoring those tax rates prior to Taxmageddon or there will be “tax-depression.”
By Joe Carbonari
Presidential leadership, congressional responsibility and public support.
All will be required to accomplish what eluded us in the fall of 2011 and that has led us to this time of decision. Who do you trust?
Do you believe those who say that if we cut taxes and spending we will reduce our debt and spur the economy?
Or those who say spending cuts will depress demand and the economy and deepen our debt even further?
I go with the latter. Our economy sputters and we lack investment not because private funds aren’t available, but rather because we consumers can’t afford to purchase the goods and services that the investments would bring to us. As a country, we don’t have the needed buying power in our lower- and middle-income sectors.
Capital and labor both sit under-employed.
We need to strengthen our economic core – to invest now in necessary job-creating infrastructure, education and research – and then, gradually as our economy improves, to reduce our debt.
Extend tax breaks where it is truly needed and commit to the entitlement alterations that are necessary. We cannot cut our way to expanded demand. Our economic body is weak. We should feed, not starve it.
Send feedback to email@example.com