GOP revenue neutral tax reform fail: U.S. can't budget cut its way to prosperity
Anyone who thinks American can solve its fiscal problems with budget cuts alone is in for a big disappointment. Slashing federal spending without raising revenue is simply not enough.
There is an obvious question surrounding the Republican budget plan that the mainstream media has failed to emphasize, which is, why bother with tax reform if it does not raise any revenue?
The Republican sound bite for their tax reform plan is "Revenue neutral." In simple terms, it means the GOP wants to take tax breaks from the wealthy out of one pocket, rearrange them, and then place them back into the other pocket, with no net gain for the federal government.
On the latest version of the failed 2011 Paul Ryan budget plan, The Hill wrote, “In order to lower rates to Ryan’s preferred levels, it is likely that almost all tax expenditures would have to be eliminated,” said Bob Bixby of the Concord Coalition."
So what Ryan really wants is to collect taxes from the working class and poor, and give the money to the rich. Then in order to give Americans the illusion that great sacrifice must be made to achieve GOP fiscal goals, all but the wealthy will be forced to endure such harsh austerity measures, America will look like an impoverished war zone.
All deficit reduction in the Republican budget plan comes from budget cuts.
Of course the biggest victim of the 2012 Republican budget are those on Medicare. The Republicans have been trying to starve or destroy Medicare since it was signed into law in 1965 by Democrat, President Lyndon B. Johnson, as part of his "War on Poverty" program.
Republicans in 2012 are still fighting a "War on Poverty," but their goal is to create more poverty, instead of less, and since the Bush tax cuts of 2001 and 2003, they are well on their way to reaching their goal of more poverty in America.
"The past decade was also marked by a growing gap between the very top and very bottom of the income ladder. Median household income for the bottom tenth of the income spectrum fell by 12 percent from a peak in 1999, while the top 90th percentile dropped by just 1.5 percent. Overall, median household income adjusted for inflation declined by 2.3 percent in 2010 from the previous year, to $49,445. That was 7 percent less than the peak of $53,252 in 1999," according to the New York Times.
Conservative Republican policy is nothing more than U.S. government corporate favoritism which has lead to bigger profits for CEO's, while workers take home lower and lower wages.
This is the economic policy the Republicans are selling to American voters in 2012. It did not lead to a balanced budget and a better way of life for Americans in the past, and it will not magically lead to prosperity in the future. All Republican policy will do is continue to make the rich richer, at the expense of everyone else.
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