Flunking basic math: Raising taxes won’t avoid the fiscal cliff
Conveniently omitted from the current fiscal-cliff discussions is the reality that for individuals earning more than $200,000 a year, their taxes already are going up in 2013, courtesy of Obamacare, which includes a new 1 percent tax on persons making more than $200,000 a year as well as an additional 3.8 percent tax on capital gains, investment income and certain home sales. These two new taxes will generate $317.7 billion over a 10-year period, or $31 billion a year — covering just a fraction of the current $1.1 trillion deficit for fiscal 2012 alone.
Do you know what some in Washington will say 10 years from now, when the problem hasn’t gone away? They’ll say, “We need to tax more.” Why isn’t the solution ever about spending less?
Some in Washington aren’t interested in the truth. They aren’t interested in facts. They aren’t interested in solving the problem. For them, that’s bad for business. It’s much easier for them to keep kicking the can down the road and using our fiscal decline to essentially “cry wolf” and raise your taxes. When will it ever stop?
I can guarantee you this: It won’t stop here, it won’t stop with just the “1 percent” or the “2 percent.” There will never be enough to satisfy this insatiable appetite to spend more.