I understand the reasoning for extending the Bush tax cuts. Supporters want the people and businesses to know what the rules are for the next couple of years, as the economy struggles desperately to improve. Unemployment benefits are extended, while Washington hopes businesses and the wealthy will begin spending more on job creation. “Hopes”, I said.
The new legislation will add more than 800 billion dollars to our grandchildren’s national debt. Sorry, kids.
The Social Security payroll tax will be reduced by 2%. That gives Americans a few more take-home dollars on pay day … which you are expected to spend on something retail. How about food?
The problem is, there is nothing in this legislation that replaces that two percent payroll reduction in long-term Social Security funding. It will give Social Security opponents more ammunition in the future to call for junking the program.
The good news is, we can all stay even or take home a little more. The bad news … the nation’s fiscal future just got kicked in the teeth again.
Obviously, we Americans are too weak to tackle fiscal responsibility.
Our thought for today is from Eric Hoffer:
“Power corrupts the few, while weakness corrupts the many.”