(Mike Chamberlain/The Cranky Hermit) – As I learn more about the debt-ceiling crisis, I’ve really been influenced by the graphic from this editorial, which has been described by some on the left as the ultimate chart of the debt-ceiling crisis. It reveals that the tax cuts from both Bush and Obama are responsible for the vast majority of the increase in the debt (and that ObamaCare really isn’t going to cost us anything at all!).
As a result, I have formulated the beginnings of a solution to the debt-ceiling crisis. We can wipe out a large portion of our debt, at least $700 billion instantly, which is more than the actual savings of either the Reid or Boehner plans.*
Because these tax cuts contributed so greatly to the debt and because many people believe they were partly responsible for the economic collapse, the only responsible course of action would be to pay them back. And if everyone who believes these things did so, the government would have nearly a trillion dollars it could use to pay down the debt, which would at least give us breathing room until the Senate and President can figure out how to take the rest of our money from us.
According to the chart, tax cuts (Bush and stimulus) were responsible for $2.237 trillion of the debt increase. Approximately 30% (conservatively) of the population believes this and/or believes that these tax cuts contributed to the economic collapse and/or slow nature of the recovery. These people have taught me that only government spending, not tax cuts, stimulate the economy. I’ve learned that it’s of much greater economic benefit for the government to take my money and spend it on things it wants than if I am allowed to keep it and spend it on things I want. But I digress.
All of these people received additional money from these tax cuts, of varying degrees. To make calculations easy, we’ll assume that the tax rate for each of them was reduced by 10 percentage points.
Since these tax cuts have been in existence for about a decade that equals about 100% of their annual income. For those making over $250,000 per year we’ll say 200% to make sure they’re paying their fair share and because they can afford it.
So everyone who opposes the Bush tax cuts should immediately send a check for an amount equal to their annual income to the Treasury (double their annual income for the “rich”).
Even if it requires selling their possessions in order to obtain the necessary cash, that’s what justice requires. Those were ill-gotten gains and the economic activity they allowed them to engage in was destructive to the economy. So liquidating any possessions they acquired because of these destructive tax cuts and forwarding the cash to its rightful owner – the federal government – is the only legitimate solution.
Since this equals about 30% of the population we should be able to recoup 30% of the illegitimate and destructive $2.237 trillion in tax cut revenue or around $700 billion. This would be a great start on the way to raising enough revenue to provide for the additional government spending that is necessary to keep all of our government workers and other tax consumers in the lifestyle they’ve become accustomed and to allow our political elites and bureaucrats to direct the nation’s resources to where they rightfully belong – to their cronies, suck-ups and those with the best political connections rather than to the people with the outdated notion that consumer choice and the market should decide.
* – We’re still awaiting the arrival of the unicorns bearing the fairies delivering the Obama plan.