Friday, December 10, 2010

"Tax and Spend Deal Fiscally Irresponsible"

"The trillion dollar tax and spend deal comes within days of the report by the National Commission on Fiscal Responsibility and Reform (established by President Obama) calling on all citizens to make sacrifices to help reduce the national debt.

The Commission tells us that the fiscal crisis is the greatest threat to the economic and political stability in the U.S.

Admiral Michael Mullen, Chairman of the Joint Chiefs of Staff, declares the nation’s debt the most significant threat to national security.

Federal spending is out of control, is sapping our nation’s strength and standing throughout the world, and is stealing our children’s and grandchildren’s futures.

...The Fiscal Commission proposes spending cuts and tax increases designed to reduce the deficit to 2.3 percent of GDP by 2015 and to reduce the Federal debt to 40% of GDP by 2040.

The Commission would also overhaul the tax code and cap government revenue at 21% of GDP.

Most, if not all, politicians profess to want to resolve the fiscal crisis but few are willing to endorse the sacrifices necessary to do so.

...It’s almost beyond comprehension that our political leaders would deem it appropriate to add another trillion dollars to an already staggering Federal debt.

It’s as if the historic election of November 2, 2010 never happened.

...surely our leaders could go through the bloated Federal budget and indentify revenue enhancements and spending cuts to offset a good portion of the cost of their deal. That’s what any responsible business or family would do.

The financial crisis is the result of excessive borrowing and leverage in both the public and private sectors. The solution is to wind down the leverage over time, not to increase it.

Resolving the fiscal crisis requires a fundamental attitude shift by citizens and politicians away from feeling entitled to instant gratification with little or no sacrifice.

The unfunded trillion dollar deal is a big step in the wrong direction."

William M. Isaac

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