Taxes are Dues...Pay Up!

I’m fairly certain the most (if not all) of our Nation’s millionaires, billionaires and CEO’s belong to exclusive country clubs.  To be a member they must pay dues.  They must pay a very large sum to belong to this exclusive gathering of other millionaires, billionaires and CEO’s.  Isn’t that right?  Once they pay these dues, they are privy to the exclusive benefits – private golf courses, private tennis courts, private dining facilities, etc. etc. etc. 

The United States pays for highways, schools, firemen, police, food safety, transportation safety, clean air, Social Security, Medicare, defense, and on and on and on.  We pay “dues” for these public privileges by way of taxes.

So, it begs the question, “If billionaires don’t mind paying dues for COUNTRY CLUB benefits, why don't they want to pay dues for COUNTRY benefits?" Taxes ARE dues - pay up!  How can it be that I paid more in taxes last year than General Electric or Exxon or Bank of America or Chevron or Boeing or Bolero Energy or Goldman Sachs or CitiGroup or ConocoPhillips or Carnival Cruise Lines?  How can it be that those 10 mega-corporations in fact paid NO taxes?  Well, despite billions and billions in profits, they paid no taxes thanks to tax breaks and loopholes. 

Tax breaks and loopholes are the two targeted items that the Democrats are proposing to reduce or eliminate to put our fiscal house in order.  Republicans are saying, “No way!”  In fact, as Vice President Biden was attempting to negotiate, the Republicans walked out the door rather than even discuss this option.  Now, the Republicans are threatening default rather than raising taxes on the wealthiest among us.

Some facts:

*Taxes are at their lowest point in 60 years.  That’s a fact. 

*During times of war, taxes have increased.  That’s a fact (well, until George W. Bush that is…)

*To build a business, one must spend money.  That is a fact that any first-year business student  learns.

*To build a business, one must have capital (more first-year business course basics)

*To increase profits, a business must increase revenue and reduce cost.

Right now in our Nation’s Capitol, the Republicans and Democrats are fighting over what the rest of us know to be basic facts.  We need to raise taxes (capital) and reduce costs (waste and redundancy).  We must raise the debt ceiling – just like we did 19 times under Reagan and 7 times under Bush – or the United States of America will be in default.  Default!  Default is defined as a failure to pay an obligation or repay a loan.

What happens to average Americans if they fail to repay an obligation or a loan?  Foreclosure, repossession, bankruptcy and a drastically reduced credit rating are all consequences of failure to pay.  So, what would happen if the United States defaults?  There are differing opinions but consider this:   Many believed the global economy would have collapsed had Greece gone into default.  One can only imagine what would happen if the United States defaulted on its debt.  Surely, financial markets likely will start experiencing very, very serious problems. 

According to a recent article in The Examiner:  “Many of the world's largest banks, which are still hardly on solid footing after the 2008 financial crisis, would go bankrupt due to their exposure to the United States.  Credit for simple things like houses and car loans may become unavailable as a result.  Most large companies use short-term credit to make their payrolls.  That credit would disappear, and as a result, many workers would have to start going without a paycheck.  There is a very real possibility that people would go to their local bank or ATM and not be able to withdraw cash from their account.  Hyperinflation could very likely ensue as the United States dollar becomes basically worthless.  The "full faith and credit" of the United States is the only thing holding up the value of the dollar, so when that credit is gone, it is hard to imagine the dollar's surviving with it.

In response to the crisis, businesses would once more lay off workers, only worsening matters and creating a downward economic cycle, which results in a depression.  The stock market would plummet as well, negatively affecting the 401(k) accounts of millions of Americans.  The price of oil would skyrocket, and with it likely the price of gasoline.  Ironically, the only people to benefit may be the firms which invested in the kind of credit default swaps that caused the 2008 financial disaster.”

Continue reading on Examiner.com   [url]What happens if the United States defaults on its debts - National Political Buzz | Examiner.com http://www.examiner.com/political-buzz-in-national/so-what-happens-if-the-united-states-goes-into-default#ixzz1RG94Sb7S[/url]

Right now China holds a very large portion of “the mortgage” on America.  President George W. Bush borrowed money hand over fist to pay for his two wars.  Not only are we paying the principal for that borrowed money, we are accruing HUGE amounts of interest on those loans.  And those loans weren’t just to pay for Bush’s wars.  He also borrowed money to pay for tax cuts (in a time of war – unheard of in our history).  Think about that - he BORROWED money to pay for tax cuts.   Does that make sense to anyone?  The anticipated revenue that was WIPED OUT by these tax cuts is a whopping $6.3 Trillion dollars.  That is enough to reduce the deficit to zero – with a boatload of money left over.  Imagine our country showing a surplus!  Oh…that’s right…we actually did – under Clinton.  Bill Clinton steadily reduced the debt while he was in office, thanks largely to the 1993 Debt Reduction Act that was OPPOSED BY EVERY SINGLE REPUBLICAN IN CONGRESS, led by Newt Gingrich!

The Republicans like to claim that they are “fiscally conservative”.  The term “fiscally conservative Republicans” is an oxymoron.  It’s a myth.  It’s a farce.  It’s a lie perpetrated on the American people for years.  If you look at a chart of the last 30-plus years, our Nation’s debt has INCREASED under each Republican President and has been reduced or remained static under every Democratic President.  http://www.lafn.org/gvdc/Natl_Debt_Chart.html and  http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x1091433

The Republican plan?  To reduce or completely eliminate programs that are essential to the health and welfare of the middle and working-class while leaving tax breaks and loopholes intact.  A healthy middle class is essential to a healthy United States.  If you are old enough, think about the 1950’s.  There was a strong and robust middle class in our country.  It was called “The Decade of Prosperity”.   The economy overall grew by 37% during the 1950s. At the end of the decade, the median American family had 30% more purchasing power than at the beginning. Inflation, which had wreaked havoc on the economy immediately after World War II, was minimal.

The answer, then, seems fairly simple.  Protect the middle class.  In 1965, CEO pay was 26 times that of their average worker.  Today it has reached 500 times.  If their wages have increased to that degree, then why not their taxes?  Taxes are dues – pay up!

Republicans - Stop holding the economic future of the United States hostage and do your jobs –  do what’s right!