Congressional Republicans have decided to extend the payroll tax cut through the end of the year without any offsetting cuts, this is being reported in two ways. In the MSM (http://www.cnn.com/2012/02/13/politics/payroll-tax-negotiation/index.html?section=cnn_latest) its being reported as a cave-in Republicans but some (http://www.zerohedge.com/news/gop-finally-discovers-obamas-achilles-heel-just-let-him-do-what-he-does-and-encourage-it) see it as a political move to ensure the debt limit is reached before the election. The question is, what does this do for the future of Social Security etc. and for their financial security?
The payroll tax cut takes $40 less per paycheck while also reducing money going into the Social Security "trust fund". If everyone takes this $40 and puts it towards retirements or savings then there is no question that the cut is a good thing because you are putting money the ostensibly is for retirement towards that end and you will actually get it.
The payroll tax cut extension will also cause that the inevitable insolvency of Social Security come to a head sooner forcing politicians to act. The way SocSec is structured (as well as medicare and medicaid) it is unsustainable and it needs to be eliminated or changed substantially. SocSec can only (practically) be changed when politicians feel that its necessary in order to be reelected and anything that makes this clearer sooner is a good thing.
The problem with the payroll tax cut is that being that SocSec is part of the budget, politicians are able to hide what is the driver behind the debt and future deficits. Prior to this Republican "Turnaround" the discussion was how to offset the taxcut with cuts to the "regular" budget, if this is how they look at SocSec then they wont be looking at how to fix it. Soc Sec is supposed to be contributions to a retirement fund but when it isn't and its part of the regular budget its a lot harder to talk of the need of reform. The bad part of the payroll tax cut is, the deficit needs to be reversed ASAP and the payroll tax cut increases it.
In conclusion if we are responsible with our $40 dollars and save it/pay down debt then the benefits outweigh the loss of increased deficits.
Problems for Young Americans
Tuesday, February 14, 2012
Thursday, February 9, 2012
Electing Cowards?
Electing Cowards?
Every four years we are told that “this election is the mostimportant election of our lifetime” and this year it is the truth. ThePresident is either a coward, indifferent to America’s future or trying todestroy the country. I don’t believe Obama wants to destroy the country butbeing a coward or indifferent is not much better.
Obama doesn’t have the guts to do anything about the debt,deficits and entitlements, so the Republican nominee must win the presidency.Electing a Republican President will not be enough, it is imperative that weelect Congressmen and Senators who are serious about reforming entitlements andnot continue electing the cowards, that have been running congress for the pasteight years. We need to elect people who are willing to make the hard decisionsregardless if it will affect their next election.
This election needs to be about reforming entitlementsbecause without something being done with them there is no future for thiscountry. Within 10 years we will be running deficits even if we would cut alldiscretionary spending, to continue ignoring this is societal suicide.
From the day I was born until this moment we have added morethan 12 trillion dollars to the debt, in other words we have extracted 12 trilliondollars from future GDP and such generational theft needs to be stopped. The US currently has over 60 trillion dollars of unfundedliabilities, put in normal people terms, its like having a credit card paymentdue of $1,200 while charging $60,000 more on it. In truth our real debt is over 70 trillion dollars and thisneeds to be reversed ASAP and it can’t be done with a bunch of cowards who caremore if they are reelected than if their grandchildren have a stable country.
Sunday, January 29, 2012
Illegal Immigration
I don’t know much about the immigration numbers but what I do know is that it is impossible to deport all illegal immigrants.
When starting a solution to illegal immigration the first thing that needs to be addressed is the border. Border security is imperative and it is not only important from an illegal immigration standpoint but from a national security standpoint. In South America there are a few countries who hate America (Venezuela) and are friends with Americas enemies, Iran for example. Hezbollah is known to have a presence in South America and they don’t exactly like us and wouldn’t mind causing America some harm. Currently our southern border is practically a two way open border which is a perfect way for jihadists to get into our country.
After the border is secured then it is possible to start talking about a solution to the illegal immigrants who are already here. The first fact that needs to be acknowledged is that any illegal immigrant who came here of their own volition has broken federal laws and is a criminal and if they were deported and returned it is a felony. I suggest that those who were brought here as minors should get the ability to get residency but never citizenship unless they serve in the military.
I understand that it is impossible to deport all illegal immigrants and nobody wants amnesty without penalty but something must be done. In middle of writing this I watched Senator Marco Rubio’s speech to the Hispanic Leadership Network and he proposed a guest worker program and streamlining the visa process. He also said a large reason for illegal immigrants not wanting to leave is that getting a visa costs so much and is so hard to get they won’t leave for fear of not being able to return. As conservatives we believe in market principals and this is a clear case of market principals working against Americas interests. I believe it will take market principals to clean up the illegal immigration mess. I propose that as part of a guest worker program we offer to current illegal immigrants the first shot at spaces in the guest worker program. It would require they return to their home countries first and pay any taxes owed. I know it is a bad idea to reward lawbreakers but it is impossible to get illegals to come forward without an incentive and people who are here have roots and know the communities they have been in so the learning curve with integrating into America would be less.
Bottom line if the border is secured and current illegal immigrants have incentive to be documented it would go a long way to know the effects of immigration on our economy and our national security.
All feedback is welcome.
All feedback is welcome.
Here is Marco Rubio's immigration speech http://www.youtube.com/watch?v=4jkUPQA9ApM&feature=player_embedded
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