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The End of The Middle Class as We Know It
Well Mr. Obama has delivered his version of the proposed 2013 budget. For all of you – it cuts defense – not as much to the corporations as to the war fighters.
It also expands money for social services and yields a bottom line that is over a trillion dollars more than we will take in.
More importantly there are no provisions to reduce that imbalance over time. There are the usual cuts attributable to fraud waste and abuse that never happen. There is the annual cut in Medicare that never happens. There are rosy projections of an economic come back not supported by most economists. And for some reason many historic cost elements magically decline significantly.
Bottom line it seems, despite the sought after tax increases on corporations and the “rich”, we will continue to be out of budgetary balance by somewhere between $500 Billion and a trillion and a half a year.
Now as a political document this budget could not draw the lines more clearly between the two parties. I would, however, argue that Mr. Obama could be more open and explain to the American people where the money will come from to pay to end our annual deficit spending.
I can only assume that in the absence of any clear explanation of how we are going to pay for all of this that in the end the current taxpaying segment of our society – the upper half of the middle class – will get to cough up the cash.
Refer to my blog listed below for a more detailed discussion but the likely outcome is a doubling of the tax take on those people – many of you. At the end of the day if the Obama administration does not offer another source we could see our governments taking almost 80% of the expected increase in income for a professional family over their working lifetime.
I hope I am wrong but I just do not know from where else the cash can come! Either we cut spending by another trillion or we raise taxes about five times more than the $200 billion in the proposed budget.
Work hard your governments needs your money!!