In the Business Section of the Kansas City Star, a question was asked recently: Is Entitlement Spending squeezing out Federal Investments? And I must say, I was surprised that most of the letters replying didn't just agree, but the answers were varied and well thought out, bringing up many other factors. So, I think the question, one the business side of the GOP asks all the time, is very limiting and completely the wrong question to ask. My question would be: Do you want to increase federal investments, and if so, should entitlements and/or defense be curtailed, should taxes be raised, or a combination of all the above?
Yes, it is a much more involved question, but one that takes the entire budget (other than interest on the debt) into account. Why does the business section think that people wouldn't accept a tax hike on anyone or any business? Federal Income Taxes on the richest Americans are lowest they've been in years, possibly since the advent of the Federal Income Tax. And under the Romney tax plan, they'd be even lower (under the Ryan House budget, they'd be even lower). And why is the Defense Budget off limits? It is almost 50% more now than at the end of the Cold War. Right now, the United States defense budget is almost 41% of the world's defense budget. Russia and China together spend just 30% of what the United States spends on defense. And if you think that we'd be alone if attacked, the next 3 counties in defense spending is the United Kingdom, France, and Japan. Not enemies in any way, and their spending together is almost 80% of what Russia and China spend together. Why are we spending so much? I don't know, but under either the Romney or the House Ryan plan, defense spending increases.
So, ask your narrow question, businesses. But don't be surprised if, by not seeing other options, we think you're part of the problem.
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