Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

3/5/2013 (2 years ago)

Catholic Online (www.catholic.org)

Solution to crisis is much more complicated than both sides say.

The federal government is set to take in a record amount of cash this year, 2.7 trillion in revenues. It seems the Democrats have the extra revenues they want. Yet, they say they need more to make the budget work. Republicans say spending is the problem and are calling for cuts. So who's right, Republicans or Democrats? The answer is yes.

Should we cut, or raise taxes? The answer may be yes.

Should we cut, or raise taxes? The answer may be yes.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

3/5/2013 (2 years ago)

Published in Politics & Policy

Keywords: Republicans, Democrats, PR, economy, fiscal cliff, sequester, revenues, budget, cuts


LOS ANGELES, CA (Catholic Online) - Neither Republicans or Democrats have been able to come up with a solution to the budget problem which has triggered a series of automatic spending cuts known as the sequester. These spending cuts are expected to impact the economy over the next several months.

Democrats say they need new revenues, a.k.a. taxes, to ensure there's enough money in the budget. They're right. Despite the record amount of revenue projected by the IRS, around $2.7 trillion, it's still not enough.

There are three basic reasons why the Democrats are right. First, the $2.7 trillion is just a prediction, and does not accurately reflect what the government will actually collect. Not all of the money gets paid. Second, inflation has reduced the purchasing power of the money, which means that while $2.7 trillion is a lot, it does not buy what it used to in 2007, when the government collected $2.6 trillion. Essentially, the government still has less purchasing power than in 2007.

Finally, programs such as Socials Security and Medicare, as well as massive expenditures by the government in other areas, continues to grow. Health care costs are out of control to the point that health care executives simply appear greedy, while the government continues to spend billions on pet projects and entitlements.

Meanwhile, Republicans want to see cuts in spending. Using the simple analogy of a household budget, Republicans say the government is maxing out its credit to support a lifestyle that is well beyond its means.

Cuts sound like an easy solution, however the programs targeted for cuts are dear to many people. Few want to see cuts to health care, and in fact they want to see more spending, not less. This is feeding a cycle of upward spiraling health care costs. With Obamacare ready to take full effect in just 10 months, it is likely that higher costs will be passed on to consumers via higher premiums and higher taxes.

Of course, the quality of care will not increase. It is a sad fact that the United States pays more for its healthcare than any other industrialized nation in the world, yet remains well behind even socialized countries in quality of care. Only for a select few, with premium plans, does care remain better.

So what needs to happen?

The only way the budget will be sustainable in future years will be to cut programs that the middle-class finds popular. That means Socials Security and Medicare, among others. Likely means testing will have to be introduced and at some point the spiraling costs will need to be addressed.

Insurance companies, which are growing ever fatter on the largesse of government money and approaching employer mandates, not to mention public necessity, are the only winners in a crisis that is approaching scandal.

Welfare spending is an issue as well, as it has been revealed that large segments of the population are now chronically unemployed or under-employed. The purchasing power of minimum wage has eroded so far that those earning the lowest wages require government assistance to support families.

Of course, the largest quantity of welfare is paid out to private contractors

Yet, cuts to these programs are unpopular. Politicians who support them will soon see themselves ushered out the door, especially those who hail from blue districts. Naturally, this goes against every fiber of being for a political creature, whose chief interest is clinging to power. It is a side-effect of a broken political system which rewards clever manipulation and doublespeak rather than wise governance.

Of course, one way to close the gap quickly is to blend spending cuts with new taxes. These would not the supposedly "new" taxes that came about as a result of the expiration of the Bush-era tax cuts, but rather genuinely new taxes. Nor does this include the massive new, backbreaking tax that is Obamacare.

In addition to these new revenues, the government should look closely at those agencies which provide services at growing costs to the people. While price controls are always a bad idea, there may need to be carefully considered reforms in healthcare and other industries that promote affordable services, such as healthcare. For example, healthcare itself (not research) should be a non-profit exercise. Instead, the entire apparatus is shifting into overdrive as insurers and providers cash in.

Fundamental to this is a reform in the political system itself. Bought-and-paid-for politicians will not solve the problems they were paid to create. For that, it falls to us, the citizens, to replace them with ethical actors who will govern wisely, rather than profitably.

Of course, given the average level of political interest in learning how to understand doublespeak and stay informed on the byzantine politics of the time, that's even more unlikely than the coming crash.

---


Pope Francis: end world hunger through 'Prayer and Action'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for May 2015
Universal:
That, rejecting the culture of indifference, we may care for our neighbours who suffer, especially the sick and the poor.
Evangelization: That Mary's intercession may help Christians in secularized cultures be ready to proclaim Jesus.


Rosaries, Crosses, Prayer Cards and more... by Catholic Shopping .com


Comments


More Politics & Policy

Thirteen cases that will dramatically change the American way of life stand before Supreme Court Watch

Image of Heading into the final month of its annual term, the Supreme Court will need to render decisions on 13 very important cases that will dramatically affect the American way of life.

By Catholic Online (NEWS CONSORTIUM)

Heading into the final month of its annual term, the Supreme Court will need to render decisions on 13 very important cases that will dramatically affect the American way of life. The high court will decide whether same-sex couples have a right to marry ... continue reading


Mysterious company without assets plays role in Clinton's fortunes Watch

Image of In the meantime, the identities of several U.S. and foreign-based companies that Bill Clinton worked for have been disclosed in Hillary Clinton's recent financial report.

By Catholic Online (NEWS CONSORTIUM)

A mysterious company called WJC, LLC without assets or employees has been discovered in the financial files of Bill and Hillary Rodham Clinton. The former president has legally used the company to provide consulting and other services. This fact demonstrates ... continue reading


Obama's use of social media points to cozy relationship between White House, Silicon Valley Watch

Image of Recognized as the first American president of the social media age, Obama has already established a standard for how politicians connect with a digitally savvy electorate.

By Catholic Online (NEWS CONSORTIUM)

President Barack Obama was swept to victory in an age of tweets, Facebook, texting and social media. While this has gotten the vote out to younger members of the electorate, there are concerns that the instant gratification of the electronic age is trivializing ... continue reading


President Obama's domestic policies under heavy legal scrutiny Watch

Image of Many of President Obama's social policies may not stand up to scrutiny in a court of law.

By Catholic Online (NEWS CONSORTIUM)

United States President, Barack Obama will be leaving office in January of 2017. When we consider his legacy he leaves to the nation, we must take into account that many of his domestic policies - such as those on same-sex marriage, Obamacare and immigration ... continue reading


Obama radically reformed an important American system -- and you didn't even realize it! Watch

Image of

By Abigail James (NEWS CONSORTIUM)

While President Obama's constantly "reforms" areas of our legislation and laws, the traditional patent law has taken a hit. Although most Americans know very little and don't care very much about patent laws, the effect these changes will have on innovative America can ... continue reading


Democrats break ranks with Obama over secret trade bill Watch

Image of Senator Elizabeth, the Senior Democratic Senator from Massachusetts, is leading a bill which would force President Obama to be transparent in regards to his secret trade bill which only Congressional members may review.

By Matt Waterson (NEWS CONSORTIUM)

President Obama's secretive trade bill is coming under fire from some unlikely sources, namely Democratic Senators Joe Manchin (WV) and Elizabeth Warren (MA), who are both leading the charge for immediate consideration of a bill that would require the contents of ... continue reading


ISIS, IRAN, OBAMACARE: President Obama's legacy - very slim indeed! Watch

Image of A very nonplussed looking president, indeed.

By Catholic Online (NEWS CONSORTIUM)

United States President Barack Obama will be out of office shortly. How will historians judge him? Not too well, according to New York Post columnist John Podhoretz. "After the failure of the Arab Spring, the collapse of Libya, the failure to act on his ... continue reading


CREDIT WHERE IT'S DUE? Hillary Clinton had 'Leadership, Ownership, Stewardship' of Libyan policy 'from start to finish' Watch

Image of State Department Director of Policy and Planning Jake Sullivan and Secretary of State Hillary Clinton and President Barack Obama at the U.S.-ASEAN meeting in Cambodia on Nov. 20, 2012.

By Catholic Online (NEWS CONSORTIUM)

According to one of her top aides, former Secretary of State Hillary Clinton had "leadership/ownership/stewardship of this country's Libya policy from start to finish." That claim came in an email written by one of Clinton's top aides. The message was forwarded ... continue reading


All for naught? FBI admits that Patriot Act didn't lead to cracking major terrorist cases Watch

Image of Opponents, with the inspector general conclude that no major cases have been broken by use of the Patriot Act's records-snooping provisions.

By Catholic Online (NEWS CONSORTIUM)

It granted the Federal Bureau of Investigation bold new powers - but now the FBI admits that the Patriot Act didn't help them crack any major terrorism cases. The Justice Department's Inspector general Michael E. Horowitz now says there are issues that keep key ... continue reading


Karl Rove's American Crossroads no longer as powerful as it once was Watch

Image of American Crossroads began by Karl Rove and other powerful Republicans were at one time a most powerful force in American politics.

By Catholic Online (NEWS CONSORTIUM)

American Crossroads, created by Karl Rove and other powerful Republicans, was at one time a most powerful force in American politics. There is evidence, however, that this is changing. The American political landscape is changing, and the group is seeing the ... continue reading


All Politics & Policy News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Sirach 42:15-25
15 Next, I shall remind you of the works of the Lord, ... Read More

Psalm, Psalms 33:2-3, 4-5, 6-7, 8-9
2 Give thanks to Yahweh on the lyre, play for him on ... Read More

Gospel, Mark 10:46-52
46 They reached Jericho; and as he left Jericho with ... Read More

Saint of the Day

Saint of the Day for May 28th, 2015 Image

Bl. Margaret Pole
May 28: Martyr of England. She was born Margaret Plantagenet, the niece ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter