Washington is once again in a deal making mode, and you are about to lose again. When Congress passed the massive debt increase bill earlier this year, it abdicated legislative responsibility to craft a solution to the spiraling debt. They gave the legislative responsibility to what Congress calls the Joint Select Committee on Deficit Reduction.
The committee was then loaded with legislative “veterans” to limit the influence of the recently elected Tea Party Republicans. Since its inception, the committee has been pushing a mountain of tax increases using the popularity of the concept of balancing the federal budget. The only question at this point is how much the two sets of Washington elites will raise taxes.
Obama and the Democrats have laid down the gauntlet. They will accept not one penny less than one trillion dollars in new taxes. Republicans have already agreed to raise taxes by at least $250 to 300 billion.
We favor another path: no agreement.
Now if you talk to the governing elite in Washington, D.C., they would tell you the resulting chaos of no agreement is the end of the world. According to the earlier passed law, if the taxes are not increased, then we may actually see a decrease in the rate of spending growth.
According to this agreement, spending will be cut across the board in non-entitlement programs by a mere $75 billion a year in military expenditures and $75 billion a year in non-defense discretionary programs. Remember in Washington-speak the budget that is cut can still increase in real terms.
According to the Wall Street Journal….