Debt Ceiling and Taxes: Show us what you have in mind, Mr. Obama

It has not been even 18 months since the Federal debt ceiling has been raised to just over $16 trillion. The limit has been breached and the government is kiting checks to keep paying its bills and resorting to some minor financial manipulation to keep in business. The time of playing these games, however, is coming to an end. Sometime in the mid-February, the government becomes like many Americans, having to chose which obligations to pay and not pay.

The debt ceiling has become a political focal point with extremely drastic consequences. It is a symbol of bloated government growth and an obstinate President who does not believe there is a spending problem in government. While all this goes on each and every day, the government spends about $ 4 billion more than it take in. Deficits have surpassed more than $1 trillion a year in the last 4 years. Even it debt ceiling is lifted by another trillion dollars it will barely last to the end of the year.

The ruling political parties have formed opposite views of the situation. Republicans-who have already acquiesced to a tax increase-believe there needs to be some spending cuts. Democrats reject any spending cuts and want more revenue.

The President says there needs to be a “balanced approach” to solve the problem but has not even hinted spending should be cut at all. In fact, I have to say, his rhetoric is quite plain, balanced means more revenue. Whenever a politician says balance or bipartisan, it really means do it my way.

Republicans are frustrated at this tactic and many of them feel the debt situation is so bad and getting worse they are willing to risk stopping government taking on new debt and all its adverse consequences such action would entail if the spending issue were not addressed. My, oh, my.

The debt ceiling is not the problem. It is the manifestation of past and current policies of the government exceeding its ability to fund itself. The standoff over its increase is the result of lack of leadership, cooperation, comity and compromise. It the case of the President it is the lack of appreciation of the economic consequences to come.

All that being said, I am interested in the “balanced approach” ballyhooed by Mr. Obama. I do not expect any useful suggestions on cutting outlays but what exact revenue increases is he proposing? How much and what? Who takes the hit in this round? Going after the wealthy again? Probably a nonstarter? Congress just passed legislation on that matter. Increased taxes on upper income taxpayers will not even dent the deficit.  Maybe, the precious middle class? I think we all just got our payroll taxes increased. Hey how about the guys who do not pay any tax at all? No way.

Is the target “big oil” again?  Even  repealing most provisions yields a few billion a years. Corporate jet depreciation?  Foreign tax deferral? Not going to happen. How about the refundable earned income tax credit that gives bundles of money to people who do not pay any income taxes at all? Or, perhaps the subsidies to the buddies at General Electric?  What is it? How about eliminating deductions for charitable contributions, pension contributions, employer health insurance, home mortgage deduction, maybe the state and local tax deduction?

 I do not think Mr. Obama is serious about the deficit, reducing spending. He is only interested in growing government and the dependence on it. If he is serious about a balance approach, then he should tell us what taxes he supports and let the Republicans fill in the spending side.

I do not blame Mr. Obama for not wanting to negotiate over the debt limit. He wants to have it all, just do as he says. Tough darts, it does not work that way.