Sunday, February 21, 2010
President Obama Tries to Bring Down the Deficit
On Thursday president Obama announced that he is forming a commission to try to bring down the budget deficit. Targeting the budget deficit is something that had to happen at some point during Obama's first few years. Realistically the only way that this can be done succesfully is through a unanimous increase in taxes. Even though Obama promissed not to raise taxes for the middle class, that would have to happen in order for the budget deficit to significantly decrease. In my opinion this has to be done in a way that the disposable overall income doesn't decrease and that can be done seeing as nominal wages sometimes decrease without affecting the real wages.
Subscribe to:
Post Comments (Atom)
I think it is important for President Obama to focus on reducing the budget deficit however it is difficult to increase taxes when the current unemployment rate is so high and consumer spending is so low. With such low interest rates, consumers are at a loss as to what to do with their money and increasing taxes now could result in public outcry. During his State of the Union address, President Obama admitted to the fact that he will not be able to reduce the deficit significantly and I believe that at the current moment, it is not and should not be a top priority quite yet.
ReplyDeleteI agree with the previous comment. At this current point in time the main concern should be the reductions of unemployment. After the unemployment decreases then taxes could be raised giving the government a bigger pool of people to collect taxes from.
ReplyDeleteI think unemployment should definitely be the focus. More people employed means a larger amount of income taxes coming to the government. And ending war will reduce government spending. Like Kyle said, they can't really raise taxes without everyone complaining.
ReplyDelete