Pittsburgh, Pennsylvania – July 24 –
The debt ceiling limit boils down to these two ideas.
- Tax and spend
- Cut, cap, and balance
Yesterday I wrote an article about Myth: Tax the Rich. Tax and spend relies upon that myth. If the people in this country can be mislead into believing that they have a savior in the rich. Then taxing and spending will prevail. Here is a quote from Walter Williams article:
According to IRS statistics, roughly 2% of U.S. households have an income of $250,000 and above. By the way, $250,000 per year hardly qualifies one as being rich. It's not even yacht and Learjet money.
All told, households earning $250,000 and above account for 25%, or $1.97 trillion, of the nearly $8 trillion of total household income. If Congress imposed a 100% tax, taking all earnings above $250,000 per year, it would yield the princely sum of $1.4 trillion. That would keep the government running for 141 days, but there's a problem because there are 224 more days left in the year.
How about corporate profits to fill the gap? Fortune 500 companies earn nearly $400 billion in profits. Since leftists think profits are little less than theft and greed, Congress might confiscate these ill-gotten gains so that they can be returned to their rightful owners.
Taking corporate profits would keep the government running for another 40 days, but that along with confiscating all income above $250,000 would only get us to the end of June. Congress must search elsewhere.
According to the Forbes 400, America has 400 billionaires with a combined net worth of $1.3 trillion. Congress could confiscate their stocks and bonds, and force them to sell their businesses, yachts, airplanes, mansions and jewelry. The problem is that after fleecing the rich of their income and net worth, and the Fortune 500 corporations of their profits, it would only get us to mid-August.
The fact of the matter is there are not enough rich people to come anywhere close to satisfying Congress' voracious spending appetite. They're going to have to go after the non-rich.
The tax the rich scheme is a house of cards. The financial reality will huff and puff and blow the house down. The non rich are the ones, who will end up paying the bill. Almost 50 percent of the non rich, pay no income taxes. You can’t get blood out of a turnip.
Face it: The United States is broke.
The United States is at the mercy of China, and investors.
The pie in the sky idea has been or should have been shot down.
The cut, cap, and balance idea passed the House, was voted down in the Senate, and the President wants just the opposite, tax and spend.
I’d bet that some version of tax and spend will prevail. In the end, tax and spend will lead to the collapse of our country. Entitlements will be lost, which could have been saved with cut, cap, and balance.