We survived the Mayan ‘End of the World’ prophecy, but can we get over the ‘Fiscal Cliff’? At this moment Washington DC doesn’t sound too optimistic.
Google ‘Fiscal Cliff’ and you will get over 826 million pages. Apparently, if Congress can't reach some sort of compromise, at the end of the year across-the-board spending cuts and tax increases will go into effect that will end the World as we know it. To fix the ever increasing debt and deficit, the President and many Democrats want higher taxes on the wealthy while the Republicans want to cut Entitlements, by which they mean Social Security and Medicare.
I am definitely against increasing the taxes. What the Democrats and President are trying to do is create a Class Warfare. Why punish the successful people? After all the mantra of capitalism is to work hard in the confines of the law and earn according to your potential. Increasing the taxes on rich is simply going to discourage the entrepreneurs. Thanks to the loop holes and expert tax advisors, while the top marginal tax rate on ordinary income is 35 percent, average rates that a household in the upper income bracket pays is much less. According to taxfoundation.org for 2010 top 1% paid an effective income tax rate of 23.3% - already double the national average!! Thanks to the K street lobbyists of Democrats and President Obama, the world has started viewing this top 1% as the villains’ of our economic plights. On the contrary they are the ones who manage the economic and human capital much better than the government, keeping pace with the changing times and circumstances. Most, if not all have earned their way through hard work and perseverance.
It’s the government and not capitalism that is driving the income inequality. By increasing the un-employment insurance it’s discouraging the unemployed to actively look for employment or to train for new skills. Let’s face it, the current unemployment is not seasonal, it’s structural. Most of the unemployed need to learn new skills to get back into the job market. What is government doing to train them? Not much. Instead of increasing their unemployment insurance for 2 years, they are better off being trained for a year and update their skill set. Teach them to fish rather than feeding them.
The rhetoric about income inequality by the President Barack Obama and the Democratic members of the Congress has been nothing more than class warfare. What is it about the top 1% that the government and President believe is wrong? It is time for the government to provide an economic environment conducive for all income groups, including the top 1% and bottom 1%, by not picking winners and losers. If President is really concerned about the bottom 1% or 25%, instead of focusing all his political energy into Obama care, he should have invested those efforts into updating the decades old tax system. Introduce the Flat Rate Tax that will cure all the ills of class discrimination.
Mr. President, Government is and never will be the answer to the economic plights in a capitalistic society. In today's divided political sphere, a lot more constructive debates are needed. Let us keep up the fight for liberty, America!
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