Monday, May 24, 2010

The Case For Limited Government & Lower Taxes

President Obama is attempting to transform our nation into a Socialist country in which government controls the means of production rather than the free market. Obama is attempting to pick winners and loser with bail outs and subsidies. Aside from bankrupting the country with all of Obama's Socialist Schemes, bail outs etc. , in doing so, the size of government is projected to grow to about 25% of gross domestic product (GDP). History tells us that when government grows much bigger than 17% of GDP, the private sector, the job creation engine of the nation, suffers greatly and the end result will be perpetual high unemployment, slower growth and a lower standard of living in the United States. This is precisely what has happened in Europe.

It is true that Europeans live in a welfare state that provides them with health care and many other benefits; but it is at the expense of their overall standard of living and freedom. The trade off in Europe for this economic security is much higher taxes and energy costs, which gives Europeans less discretionary income and freedom. In addition, unemployment in Europe has always been higher than in the United States with more people perpetually on the dole. The chickens have come home to roost in Greece and other European countries because their systems are not sustainable. We have the same thing happening in California, which has among the highest overall tax burden in the nation; yet is bankrupt. The tax burden and crazy employment practice and environmental laws in California are pushing more and more jobs and companies out of California. And, it is a vicious cycle. As the jobs leave, the tax revenues are not there to pay for the welfare state, which then requires higher taxes, which causes even more jobs to leave.

President Obama and the Socialists that control Congress, whether intentionally or not, are orchestrating this vicious cycle. As they implement Trillions in deficit spending to support public employees and all their Socialist Schemes, jobs will be lost, which will result in less tax revenues going to the government. As this happens, Obama and friends will push for higher taxes of all kinds, which will kill even more jobs. They then will push for even higher taxes and more bail outs and longer unemployment benefits to deal with the "crisis". This is a never ending circle of decline.

In addition, Obama and team are projecting 4% average GDP growth to deal with the humongous national debt, which is projected to grow to $23 Trillion over the next ten years, if these Socialists are not stopped in upcoming elections. This does not include the $150 Trillion of unfunded liability for HealthScare, Social Security and Medicare that is just sitting there waiting to explode on the American people. The problem is that top Economists have concluded that government growth to 25% of GDP is likely to produce average slower growth of 2%, or less, over the next ten years. So even with significantly higher taxes, planned by the Obama Regime, it will be impossible to bring down this debt and it is likely to be even higher than projected because as interest rates go up, as they will in the next ten years, the federal government will have to use more and more tax revenues just to service the debt let alone pay it off.

The only way to deal with the national debt is by cutting taxes to create jobs in the private sector and by shrinking the federal government to no more than 17% of GDP. This will not happen as long as Obama and the Socialists who control Congress are in power. Hence the reason we must elect Conservatives in 2010 and 2012 who support free market capitalism, limited government, lower taxes and less regulation, a balanced budget, term limits, a strong national defense including securing our borders, real energy independence and health care reform, not CAP & TAX and HealthScare, the right to bear arms, the sanctity of life and family values. This platform is the road to prosperity and freedom. And, we must elect Conservatives that support the Constitution, as written by our Founding Fathers, not as contrived by our current Socialist President, former President, Congresses or the Courts. We have to take back our country in 2010 and 2012. We must do it for the sake of our children and grandchildren.

P.S. Please pass this posting on to all your friends and neighbors to help educate them on the facts we face as a nation.

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