GOVERNMENT SPENDING HAS TO SLOW DOWN!

Here are a couple things that you really need to know and pay attention to. Spread the word if you agree. Now is the time to let your Congressmen Congresswomen know what you think.

First of all, you are aware of the Sequester cuts in spending that are supposed to start in March if nothing else is done. I am saying that even though they might be tough to swallow for some areas, overall this is the best thing that can happen. That is of course, unless Congress figures out a way to work together and readjust the cuts. Good luck on that!

We have to quit spending so much money that we have to borrow. The increases in debt  need to stop and the only way to do this right now is to stop spending by the Government. We have raised tax rates at the end of last year so now it is time to cut spending. Right?

That was the deal, raise taxes and cut spending. Well what do you think Obama and the Democrats want to do? Cut spending? But no, they have not put forth a plan (other than the Sequester) to cut spending at all! They want to raise taxes some more! Something has to happen and that is why we should just go ahead with letting the Sequester happen. Maybe it will jar some sense into the “spend at all costs” Democrats.   

Here are three  examples of government spending gone totally out of control; and not just spending by the Democrats but all parties:

·         Take three minutes to watch this video; it will scare you and make you angry; we have to stop the spreading of government programs that employ more and more people and create more and more regulations that strangle the American economy;  http://www.youtube.com/watch_popup?v=xOAgT8L_BqQ&feature=player_embedded

·         Per the Wall Street Journal on February 19^th, 2013 the government cell phone program has spent $2.2 BILLION in 2012; this us up from $819 Million in 2008. That is an almost tripling of the size of this program in only four years.

·         Look at the salaries in the federal government in terms of average size compared to the private sector:   https://iqconnect.lmhostediq.com/iqextranet/view_newsletter.aspx?id=102293&c=VA07EC Now while I am not a fan of Eric Cantor he does lay out for all of us what is going on in Washington right now. The current administration has given an across the board pay raise to all employees when the average government employee already makes more than the average private sector employee. First of all, across the board pay raises eliminates the initiative to perform better and get MERIT pay raises, which is what the private sector uses. Second of all, right now when most private sector employees are not getting any raises, why should the government hand out a raise to everyone across the board?    

Thanks for listening and reading. If you got this far you are concerned. Lets do something about this. Let your representatives know how you feel. When it comes time for the next election, pay attention to what the candidates are saying, then vote for someone who wants to reduce the scope, size and spending of our government. 

THE DEBT CEILING AND CONGRESS

Ok, what we know is that Congress needs to vote to raise the debt ceiling of the United States of America by August 2. Our debt will be $14.29 Trillion at that time and we still need to have room to take on more debt!

Why do you think we need to have room to add more debt? Well, the answer is simple. 18% percent of every dollar the government spends goes to interest. Yes, that is right; it goes to pay interest on the existing debt. So what is happening is that the debt never gets reduced; it only goes up because we don’t have a surplus of revenues over expenses.

To put this in simpler terms; it is just like the mortgage loans that were made to help create our current economic crisis. They just paid interest and in many cases did not even pay enough to cover the interest so the balance of principle went up. That is where our country is right now. To put it in even more simpler terms; no economic unit can continuously spend more than it takes in. That is the road to bankruptcy!

Now the parties are arguing about how to fix the current mess that they and their predecessors created. The Democrats want to cut some spending and raise taxes by eliminating the Bush tax cuts among other things. The Republicans want to cut a lot of spending and leave taxes alone. All this is in return for raising the debt ceiling, which is a conceptual problem all by itself. So they have been at a standoff.

Before I go any further, do you know that all the income taxes paid in this country are paid by only 50% of the people? What, how can this be? Well, with all the entitlement programs and all the tax breaks for low earners and low tax brackets themselves that is how it all works out. Now, I will grant that much of this is needed. But, taken as a whole, 50% don’t pay any taxes? The burden of running our massive government (a problem in itself) falls on only one half of the tax paying public!

Now back to the question of how to get everyone off dead center and make something happen by August 2 because if nothing happens by then do you have any idea of the economic turmoil that will be created? The bond market goes crazy and interest rates sky rocket because no one has confidence in US government bonds. The stock market probably craters due to the anticipated effect on our economy. We will see a recession like we have never seen before both in terms of degree and length!

We currently have grown adult Congress people acting like children; not just the Democrats but the Republicans as well. In fact, our very own (I live in Virginia) Eric Cantor is leading the way in childishness.

What is the right solution? Seems kind of easy doesn’t it. Only agree to raise the debt level if substantial expenses are cut (3 to 4 Trillion) and ok, yes, let’s close a few tax loopholes (there are many to choose from). While we are at it; let’s pass a balanced budget amendment. Also, let’s take the payroll ceiling off Social Security Earnings and make the cost of living formula more realistic. Make some changes in Medicare to reduce costs. Most important, if we close some tax loopholes, some of those must be to increase the percentage of people actually paying taxes.

Lastly, we need to make some changes in how Congress works. For example, they don’t have the same health care plans as we do, they don’t have to abide by insider trading rules (nor does their staff), they get a full pension after working in Congress for only 4 years, they vote themselves raises when they want to, they take advantage of overseas travel for themselves, their spouses and their staff, etc. All this needs to change!

What can you do? Several things. First of all you can write or email your Congress people and tell them to quit playing games and get something done. Second of all, if they don’t, vote them out. In fact, until they quit acting like children on all issues, we should keep voting them out until we get some people in there who want to do good things for the country instead of trying to get reelected 24/7!

Nuff said!