Speaker Boehner, we really do need an adult conversation about our Debt...

"I think it’s time for us as Americans to have an adult conversation with each other about what’s driving the debt." (John Boehner, R-OH, Economic Club of New York, May 9, 2011)


  That's fine with me, Mr. Speaker. 


  We're fast approaching the time when we need to raise our debt ceiling or face very bad repercussions around the world. We've done it before many times and now is not the time to stop. No one disputes we need to address our debt, only how. Historically, its been a combination of both cuts in spending and tax increases that have yielded the best results. 


  With your statement that "everything is on the table except for tax increases," you suggest that everything we desire can be attained by cutting expenses in a variety of areas. I don't believe you believe that. While you trot out faithfully the "the American people deserve an adult conversation" line, you drag the conversation into a different direction entirely. Perhaps less political posturing and more adult-like behavior might produce results more appealing to the American People. 


 After cutting taxes, Republican leaders, led by Bob Dole, convinced President Reagan tax increases were necessary to a recovery in the 80's. Reagan took the advice, raised taxes and helped improve the US economy. George HW Bush infamously raised taxes as well as Bill Clinton. The world did not end, the sky did not fall and we had a pretty good run after those tax increases. 


 That said, according to the Bureau of Economic Analysis, Americans paid the lowest percent in taxes since 1958. That's fifty-three years ago. In 2010, we paid 23.6% of our income in combined Federal, State and Local taxes compared to 27% which we paid between the years of 1970 through 1999. That 3.4% reduction equates to roughly 500 billion dollars for our various government coffers. 


 The decline in tax percent is attributable to two main factors. Lower tax rates and lower tax revenues caused by high unemployment of recent years. Both President Bush's (#43) and President Obama's tax cuts have contributed to this negative effect on revenues. 


  President Reagan's own Budget Director, David Stockman, has stated that trickle down economics do not work. Further, he's no fan of the Bush tax cuts whatsoever. He's got plenty of dislike for Democratic fiscal policy, as well. 


  Previous tax increases have helped in the past and they could help now. We need a smart blend of aggressive and comprehensive spending cuts AND tax increases. Surely a true "adult conversation" could convince most Americans its time to address our debt from both ends, just like they do. The average American household experiencing financial problems seeks not just to cut expenses, but they also look for ways to increase the amount of money coming into the home. Its what the Country should do. 
  
Quickly...




Sources: 


http://www.hamreport.com/2011/05/john-boehner-says-he-wants-trillions-in.html?spref=tw


http://finance.yahoo.com/blogs/daily-ticker/boehner-no-tax-hikes-pledge-completely-incomprehensible-ft-145656288.html%20?sec=topStories&pos=8&asset=&ccode=

http://www.nytimes.com/2004/06/08/opinion/the-great-taxer.html?pagewanted=1

http://www.usatoday.com/money/perfi/taxes/2011-05-05-tax-cut-record-low_n.htm

http://www.nytimes.com/2010/08/01/opinion/01stockman.html