Federal Budget Deficit

The recent political and economic chaos related to the US Government's management of our national debt prompted me to learn more about the issue, and to document here what I've learned.  This isn't a purely local tax issue, unlike the others I've written about elsewhere on this website, but it certainly affects us locally.


We as a nation must, over the long term, have a balanced budget and pay our bills.  For the past several years we've done exactly the opposite, and we're now facing the pain of having to deal with the consequences.  The US Congress must decide how best to dig out of our self-created hole, and how best to stay out in the future.  We as individuals must tell our priorities and preferences to Congress, and hold our Senators and Representatives accountable for acting in our best interests.

I found the chart at left on the website of the Center for American Progress and copied it here because it attempts to illustrate the fundamental choices Congress is making on our behalf.   The same chart is also available as a PDF file.

If this chart is factually incorrect, please email the details to me at comment@beavercreektax.net.

If it is correct, it does not appear to represent the best interests of most Americans. 

I encourage you to study the issue, form your own opinion, and write to Congress.  Click here to find and contact your US Senators Click here to find and contact your US Representative.


Warren Buffett calls for higher taxes on the wealthy, himself included


After reviewing the chart at left on August 14th, 2011, I sent the following email to Senator Sherrod Brown, Senator Rob Portman, and Congressman Steve Austria:

[Senator Brown] [Senator Portman] [Congressman Austria], please include an increase in taxes and a reduction of tax breaks in your efforts to manage the federal budget deficit.  I am a retired military officer, a conservative by nature, and an advocate for responsible and balanced leadership.  The current Republican insistence on preservation of any and all tax breaks for wealthy individuals and corporations, at the expense of programs designed to assist a much wider segment of the population, is inconsistent with responsible and balanced leadership.  I, and the nation in general, need you and all of Congress to do better than that.  Please include an increase in taxes and a reduction of tax breaks in your efforts to manage the federal budget deficit.

On August 15th, 2011, Senator Portman emailed me a reply, posted here as a PDF document.  His reply only briefly touched on the issue of taxation, so I again contacted him via his official website and sent him the following email:

Senator Portman, I contacted you via your webpage on August 14th to ask you to include an increase in taxes and a reduction of tax breaks in your efforts to manage the federal budget deficit, because preserving tax breaks for the wealthy at the expense of programs designed to assist a much wider segment of the population is inconsistent with responsible and balanced leadership. 

Your August 15th response primarily addresses the debt limit, and concerning taxes only says “I'll also continue my fight against higher taxes because increasing the burden of taxation on the economy will further slow a weak recovery.”

The assertion that restoring taxation on the wealthiest 2% of Americans to year-2000 levels will slow the nation's economic recovery is without merit, as it rests upon the time-disproven "trickle-down" economic theory and ignores the economic impact of de-funding and under-funding education, training, and health programs that could have been operated with the lost tax revenue.  Maintaining disproportionately-generous tax breaks for the wealthy while slashing budgets for education, training, and health programs will only ensure that the rich get richer while a far greater number of Americans are denied access to programs designed to increase their productivity.  Your endorsement of this tactic, and your use of sound-bite terminology such as "increasing the burden of taxation on the economy" to divert attention from the issue of disproportionately generous tax breaks for the wealthy at the expense of average American citizens, are inconsistent with the responsible and balanced leadership the nation desperately needs.  I ask you to reconsider your position, and to include an increase in taxes and a reduction of tax breaks in your efforts to manage the federal budget deficit.


 

 

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Thanks for your interest.  If you have any questions about the information on this site, or if any of the facts are wrong, or if you'd like to express your opinion about any of it, please e-mail me at  comment@beavercreektax.net.  I will not post your comments or name without your specific permission. 

Dean Vinson
Beavercreek, OH