Maybe this State of the Union is bigger than we can handle.
Most of us here in Michigan were actually watching basketball last night, and sneaking peeks into coverage of the fire-engulfed cabin in California. In fact, most of the people I talked to were more interested in paczki, friends, and family.
So as President Obama spoke, we heard the key phrases of tax reform, jobs, economy, and compromise. Working together receives applause – but there’s been nothing of the sort. Calls for deficit-neutral budgets are code for revenue, and that means taxes. And honestly, it’s not just the rich that need to pay. It’s everyone.
While it may not be as much for a poor person to pay as a rich person in proportion, it still needs to be done. For every citizen – whether the dollar be spent on incentives for giant corporations or welfare for the poorest of the poor – it still needs to occur. Some can’t pay as much as others, but we need responsible fiscal discipline to start somewhere.
As a small increase in taxes for a middle-income home is slight, a small increase in taxes of a higher-income home is slight as well. Perhaps the metrics of the rate may prevail to a higher income bracket, but a shift across the board may be required to find the political will to address tax revenue.
If we’re all citizens of the same nation, we all need to pitch in. Even if it’s a small portion, it’s necessary for a nation that has spent 30 years in purposeful deficit spending.
If we want to provide for our troops.
If we want to educate our children (with universal preschool).
If we want to revamp high schools for the 21st Century.
We have to spend money.
And in order to spend money, we have to raise it from citizens. Sure, we can cut spending, but it won’t happen from either party. Taxes are coming, and it’s not just going to be on the rich. The law may specify higher incomes, but the effect will be profound on the poor.
Demands for higher productivity to cover increased costs from expected ObamaCare mandates and higher taxes could kick-start the economy to make up the difference, leading to actual growth. Or, the increased demands lead to cutting costs (layoffs) that re-zero our unemployment rate to 8% permanently.
Tax on. Mako out.