You are the President’s economic advisor
Last week, the Congressional Budget Office issued its annual review of budget projections for the next ten years. It should come as no surprise that the report is dismal. Serious choices must be made. Let’s assume that you just have been appointed as the President’s economic advisor…what would you recommend?
Based upon this report, here is what you know.
The CBO assumes that all of the Bush tax cuts will disappear on January 1, 2013. In spite of what you have been told by the “left”, you also know that these were not tax cuts for the rich, they were tax cuts for everyone, at least the 51% of tax filers in this country who actually are paying income taxes.
You also know that the CBO projects that with the expiration of these tax cuts, the government will collect an additional $3.6 trillion in tax revenue…over the next 10 years. Given that this administration has added some $5 trillion in debt over the last 3 years, $3.6 trillion will go a long way to reducing that, assuming that all $3.6 trillion went to reducing our debt.
But, you also know from the CBO that if the Bush tax cuts expire, economic growth will decline to a paltry 1%, and unemployment will rise to 9.1% because money that would have been in the private sector to spend on goods and employees has been taken by the government.
However, your logic tells you that lower economic growth means less corporate taxes collected, and higher unemployment means less individual taxes collected. So the $3.6 trillion projection becomes something less.
Let the tax cuts expire, or not?
Then again, you could split the baby and let the tax cuts expire for all but the “rich”, however that term is defined. But, as jobs are paid for by the rich, what will this choice do for unemployment, much less economic growth, and the increased tax revenue that results from employment and economic growth?
You decide.
The future of our country may well depend upon your decision.
5 Comments
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As the current President’s economic advisor, I would recommend letting the tax cuts expire, so the unemployment rate goes up (briefly – see final point) to guarantee he would NOT be re-elected.??
Yeah, kind of devious, but hey!
For the next President, just for starters?would recommend?insituting a flat tax and doing away with most of the bloated bureaucracy in government.?
STOP SPENDING or at least stop trying to find new ways to spend. Stop spending on items that are the states responsibility ie… STOP TRYING TO CONTROL LOCAL GOVERNMENTS BY BRIBING THEM WITH OUR MONEY!
Make the Bush tax cuts permanent. Work to cut dramatically the regressive taxes centered around government unfunded mandates. And most important, rescind the crazy spending of not only The O but also many of the Bush years too. It is our only hope.? I am desperately tired of the idiots who think that we can go on indefinitely printing money AND borrowing.? ?
SOS, “split the baby”?. Surely you jest? There is NO one in the Obama administration who has the wisdom of Solomon.
As adviser to the president, I would implore, beg…and yes; Raise my voice! Maybe even use some for letter words, Biden style, ‘Mr. President, four letters, two words; WE ARE BROKE!”
An ?Adviser with character and courage, would tell the President: Read the CBO without the rose colored glasses! WE ARE ?BROKE! We need to continue the Bush Tax Cuts. Maybe ?Sir, they should be raised by some minimum at the least?
Freeze spending domestically for unfunded mandates…TO START! Starting with Egypt, Foreign Aid should be suspended to all countries whose governments smile taking the check, then advocate terrorism when they cash it. Rick Perry was right to to suggest all foreign aid revert to zero and be reevaluated.
We should look at governmental departments for duplication of services and close what isn’t productive. We must look at the Educational Dept. and consider the possibility that states be allowed to run that department without being decimated by the federal government. This country is in need of great change…in how we spend our money, our money meaning the peoples money. We need to start now or the only Can we kick down the road should be yours! ? ? ??