America’s Debt Crisis

Posted on July 22, 2011



An Editorial Piece

In a heated bipartisan debate over the health and future of America, Republicans in the House are refusing to budge on raising taxes. They argue that during a recession, taxes shouldn’t be raised on anyone, even the very wealthy who are taxed disproportionately low. They’ve been able to keep this unpopular argument afloat by tagging these rich entities– job creators.

Courtesy of Hearst Newspapers, Horsey

But what is the truth behind this argument? Are these really the job creators? Will they stop creating jobs if their taxes go up? Which move is best for the American people?

Courtesy of Hartford Courant

First, we must understand that the American economy is in serious trouble and tough choices are unavoidable in order to fix it. That means that some taxes will have to go up and some entitlements will have to be trimmed.

Courtesy of Star Trinune, Sack

It is common sense that in order to balance a budget, you have to be bringing in more than you are doling out. Even if we cut spending drastically, we would still have to increase revenue. That means raising taxes.

If your business were facing bankruptcy and you had to get the books in order, you would likely sell some assets and stop spending money on unnecessary, exorbitant things. But that would not be enough. To dig yourself out of the deep hole, you would also have to increase prices. As much as you would probably hate to burden your customers, you would have to ask them to make sacrifices if they still wanted you to be around.

Similarly, the American government will have to increase taxes in order to help dig itself out of this deep whole. In this analogy, eggs and milk and other staples aren’t going up, but flat screens and gaming systems are. It isn’t meant to further burden the struggling, but wealthier patrons, who have had it pretty easy, will have to give a little more to the business so it’s still there tomorrow.

Wanting to shrink what they consider to be a bloated government is an acceptable stance for Tea Partiers and Republicans, but failing to understand simple mathematics is not. They will eventually have to realize that cutting spending is not enough, raising revenue is inevitable, and refusing to raise the debt ceiling to teach “Washington” a lesson is beyond ridiculous and irresponsible.

Courtesy of Houston Chronicle, Nick Anderson

Freshmen Republicans need to take a lesson from their honored deity Ronald Reagan and learn to compromise for the good of the nation. If they drop the ball on this, 2012 may prove to be a referendum on “irresponsible decision-making to prove a point.”

(Feature Image Courtesy of Mike Luckovich)