DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Obama budget model: $2 trillion in spending cuts and $1 trillion in revenue growth

**viepedorlella** · 04-16-2011, 10:50 AM

Did ya see where he calls tax increases "spending reductions"? He calls spending "investing". So is a tax increase a reduction in investing or an increase in investment??? I'm confused.

I know you're confused. Most Republicans are. They don't get the idea that less money coming in adds to the debt and the deficit. Let me explain.

This was the quote, "The fourth step in our approach is to reduce spending in the tax code, so-called tax expenditures. In December, I agreed to extend the tax cuts for the wealthiest Americans because it was the only way I could prevent a tax hike on middle-class Americans. But we cannot afford $1 trillion worth of tax cuts for every millionaire and billionaire in our society. We can’t afford it. And I refuse to renew them again."

Let's say when you pay your bills every month ($5,000) you still owe $1000 when you're finished. Then you decide to work part-time and cut your income by $1000. You've just added another $1000 worth of debt to your monthly budget, more "expenditures," maybe in higher credit card interest and long-term compounding loan interest.

To reduce that debt, you need to add more money, so you cut back on something else or you get another part-time job worth $250 a month or more to help reduce that monthly deficit. If you are living each month on borrowed money (an expenditure) and you cut your income, the expenditures grow.

04-16-2011, 10:50 AM	#5
viepedorlella Join Date Oct 2005 Posts 446 Senior Member	Did ya see where he calls tax increases "spending reductions"? He calls spending "investing". So is a tax increase a reduction in investing or an increase in investment??? I'm confused. I know you're confused. Most Republicans are. They don't get the idea that less money coming in adds to the debt and the deficit. Let me explain. This was the quote, "The fourth step in our approach is to reduce spending in the tax code, so-called tax expenditures. In December, I agreed to extend the tax cuts for the wealthiest Americans because it was the only way I could prevent a tax hike on middle-class Americans. But we cannot afford $1 trillion worth of tax cuts for every millionaire and billionaire in our society. We can’t afford it. And I refuse to renew them again." Let's say when you pay your bills every month ($5,000) you still owe $1000 when you're finished. Then you decide to work part-time and cut your income by $1000. You've just added another $1000 worth of debt to your monthly budget, more "expenditures," maybe in higher credit card interest and long-term compounding loan interest. To reduce that debt, you need to add more money, so you cut back on something else or you get another part-time job worth $250 a month or more to help reduce that monthly deficit. If you are living each month on borrowed money (an expenditure) and you cut your income, the expenditures grow.
	Quote