Okay, the President is going to reveal his plan to reduce the debt today. Let me be the first to comment on what he's about to say, and at the same time arm you with the math to make sense of it.
Our current debt, as of the moment I wrote this, (as it's climbing faster than I can write), is $14,299,355,790,000, fourteen trillion dollars and change.
Our current GDP, again as I write this, (it's climbing just as fast), is $14,660,384,317,000, that's fourteen and a shade over one half trillion dollars.
Here's the point, if we tax every penny of that income @ 100% we can just pay the debt off. The President is going to tell us we need to tax the top income earners. Nice plan, but according to the talking heads that will only increase tax revenue $81 billion to 100 billion depending on your source. Since our annual deficit is 1.6 trillion, that won't cut it. They do agree if we tax everyone as we did pre-Bush tax cuts, it will increase our tax revenue 550 billion. Even that leaves us woefully short of what we need, with a deficit of over 1 trillion still outstanding. We'll be going backward still.
You don't have to be a math major to understand we need to cut spending, and cut spending deep to even begin to turn this in our direction. First we need to balance the budget, NOW! Then we need to address our tax revenue to lower the money we owe. It's not complicated, income has to exceed spending and debt. There is no way raising taxes on anyone alone will solve this issue, so let's put the horse BEFORE the cart and address spending. If anything else is offered in the President's fiscal plan, it's simply kicking the can down the road. That time has passed!
We've created a welfare state, which is nothing more than a mechanism by which the government has confiscated the wealth of the productive members of our society to support a variety of entitlement schemes. They cloaked this taxation under the guise of deficit spending, because they didn't have the backbone to tell the American taxpayers they were taxing them into oblivion. This is not a modern day problem, it began to worsen when we left the gold standard and has snowballed ever since. That elimination allowed the welfare liberals to use the banking system as a means to expand credit. They created paper bonds they sold to increase their borrowing ability, and now we have a monumental mess to address. The law of supply and demand cannot be conned, not by the most savvy politician. The time has come to pay the piper!