Monday, December 31, 2012

The Real Fight In Washington DC

The real fight in Washington DC is not about the Fiscal Cliff.   That is a side show produced by Drama Obama to satisfy his PEEP's.   In fact, Socialists have agreed to extend the Bush Tax cuts, that they opposed when they were enacted, for at least 98% of all Americans.  It may go to 99% as part of a compromise deal.   While taxes will not be as low as enacted by Ronald Reagan, they will still be lower than the tax increases enacted by Bill Clinton for the vast majority of Americans.   So whatever happens, this is a victory for Conservatives and the American people. 

Of course, Congress must still deal with inheritance tax, which will probably provide for $3.5 - $5 million tax free and then a 35 - 45% income tax after that, which is confiscatory.  Dividend and Capital gains taxes may go up to 20% as part of a deal.   All of these things could have been done months ago. 

The real issue is spending cuts.  Most of the federal government budget goes to support Social Security, Medicare and Medicaid.   Without reforming these Entitlements, it is impossible to get spending under control.   This should be a no brainer negotiation; but Socialists absolutely refuse to cut benefits for future recipients even though common sense would dictate otherwise since people are living so much longer.   Ultimately, to receive full Social Security benefits, the age should inch up to 70 years old for people age 30 and below today.   And, increases in benefits related to cost of living must be moderated for all recipients. 

Early retirement could still be at 67 for these young people.   Medicare needs to follow the Social Security age and should be means tested so that the wealthy pay more for their benefits, even though they have already paid for Medicare many times over.   Medicaid needs to be block granted to the states to control costs.   And, probably something will need to be done to control ObamaCare costs. 

Finally, we have to get other federal government spending down from Obama's 25% of GDP to the more traditional 18% by eliminating 500,000 federal civilian employees, out of the current 2.65 million, through normal attrition and by ending the redundancy that exists in federal programs, commissions, agencies and departments.   This too should be a no brainer; but it will not happen as long as Socialists are in power because of their ties to public employee unions that support them. 

The real fight in Washington DC is about spending cuts, not the Fiscal Cliff.   The United States is headed toward bankruptcy and a loss of our national sovereignty.    Conservatives in Congress are trying to prevent this from happening.   Socialists are doing everything they can to bankrupt our country.   This is the real story. 

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