Geithner Calls for Tax Increases!

Secretary Timothy Geithner said on Tuesday, June 21, that to raise the legal debt limit, would be "irresponsible" to reduce the massive federal deficit anticipated over the next 10 years with spending cuts alone and that for the long term we need “revenue increases through tax reform." The problem with people like Geithner is that he believes he has a right to your money more than you do.  

The federal government has been spending money like drunken sailors for decades, while we can't pin all the blame on President Barack Obama, as every president has spent more than the preceding president for almost a century, it is a fact that Obama has increased the national debt to already more than 14 TRILLION dollars and, according to the CBO, this debt will reach 70 percent of GDP by the end of this year alone!

Geithner is right, we do have a problem. And, things can not continue for very much longer before the U.S. dollar collapses. Yes, it will collapse. At some point, the dollar will be seen as too risky to hold and it will be sold off by those holding on to it. When this happens, the game is over. We are not approaching this time as it has already arrived. It's just a matter of when the greenbacks hit the fan, and if we can turn this ship around before everyone else, especially debt holding countries like China and Japan, come to the same conclusion.

One part of Geithner's solution is to raise taxes. But don't worry, he will only raise taxes on the rich. Many among us love this chorus of "tax the rich." But, the rich can lower your salary, lay you off, close up shop, go out of business, reduce your benefits, find loopholes or move out of the country. The problem with the soak the rich idea is that the rich are rich because they are smart and will only play ball as only as long as the weather's fair. You can only tax the rich so much, because at some point, there will be no more rich to tax.

The other half of the solution is to DRASTICALLY reduce government spending. But, it's obvious that neither of the two major parties is seriously taking this position and never has in modern history, so there is absolutely no reason to expect an epiphany anytime soon. This is because they, like Geithner and most in Washington, believe that they have a right to your money more than you do, and as long as we believe this, nothing will ever change.

With July 4th coming right around the corner it would do us well to remember that America was founded on the idea that government exists to protect our "life, liberty and pursuit of happiness" as well as our property. As long as Americans believe that the government has first dibs (or rights) to our money and we allow it to take our money-spend it it's own discretion-take it's cut and give us what's left over, we have violated the principles at the very heart of the Declaration of Independence, the Constitution and the very purpose our government was created.  

There is little hope when government doesn't believe in nor follow the rules, but there is even less when we don't. Nothing will change in Washington until something changes in our hearts.