Federal debt will exceed twenty-five trillion dollars by 2020. That is a hole we will likely never climb out of
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Okay, Mr. President, here’s the deal. We agree to a top income tax rate of 39% on Americans making more than $250,000 a year. In return we want the following, in the same bill:
(1) A reduction of Obamacare taxes equal to the revenue raised by the top rate increase.
(2) Open all Federal lands to gas and oil development.
(3) Limit the rise in next year’s debt limit to one trillion dollars.
If Barry—oops, I mean the President—nixes the deal, we let the Bush tax cuts expire and refuse to raise the debt limit.
Some would argue such a stand is suicidal for Republicans. Hardly. On all three points they can occupy the high ground, both morally and politically.
(1) Raising taxes on the rich in exchange for lowering Obamacare taxes makes for a sure winner. The offer will force media attention on the regressive “Affordable Care” taxes that soon go into effect. Taxes that will brutally fall on every American.
(2) Opening Federal lands to energy exploitation will provide the same boost to the economy as a massive tax cut. Some estimates predict three million jobs would directly result. And unlike a tax cut, there would be no immediate loss of tax revenue. Indeed the three million new taxpayers would add billions of dollars to the revenue stream.
(3) Holding the debt limit rise to one trillion dollars would in effect freeze Federal expenditures at 2008 levels. With judicious management a minimum of Federal operations would shut down or government employees be let go. And the Federal budget would come close to achieving that impossible dream, i.e., being in balance.
The Republicans can also argue that such a deal will steer the ship of state toward shore. The “fiscal cliff” is but a beaver dam compared to the Niagara Falls we go over if the country does not put in order its fiscal house. If the ship does not change course, Federal debt will exceed twenty-five trillion dollars by 2020. That is a hole we will likely never climb out of.
Barry would of course scream like a stuck pig when presented with this offer. He would rage so frantically that even his teleprompter could not keep up. He will shout betrayal, terrorism, perhaps even treason.
But if the Republicans stand fast, he will yield. For what is the alternative? No increase in the debt limit, which would entail a massive cut in the size of government? A huge tax increase on the middle class, who are the key to all elections?
If the Republicans hold firm on their proposed deal, we could look forward to the day—probably this coming March—when newspapers across the land carry the banner headline: Obama Caves.