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Commentary About the Blue Marble

Category Archives: Deficits

I’m a Deficit Hawk

18 Friday Jun 2021

Posted by Commentary about the Blue Marble in Deficits, Economy

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            I remember Bill Clinton and Newt Gingrich worked together to put the economy on track, raise taxes, and reduce the National Debt to the point of disrupting the world’s banking system. They paid of all the 30 year bonds, most of the 20 year, and were making a dent in the 10 year. National banks around the world pleaded to go no further because they use the bonds as a reserve.

            Some years ago I read a study about individual and corporate income tax rates. The study shows a rate up to 60% had little to do with a person’s spending and life style. Lower taxes increases management income through salary, stock options, and golden parachutes. It had little effect on operations at a rate below 40%. Those are effective rates and not one with thousands of deductions and loopholes. Bezos paid no Federal Tax and Buffet pays less than my wife and I.

            Before the Trump tax cuts, multi-billionaire Warren Buffet said his effective tax rate was less than his secretary’s. He and many other billionaire’s have said tax rates are unfair.

            President Biden has proposed a budget fixing the country’s problems but with a half-way increase in taxes. We need those fixes to help us catch up with the rest of he other advanced countries. We need the international 15% minimum corporate tax passed.

            As a deficit hawk I had much rather see taxes on the super rich and wealthy corporation go up than increasing deficit and debt. We need the fix more than we need the rich to keep benefiting from lower effective rates than 99% of us. It’s wrong when they pay several percent less than me.

It’s Not the Economy Stupid

14 Thursday Nov 2019

Posted by Commentary about the Blue Marble in Deficits, National Debt

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I agree with some of Senator Elizabeth Warren’s ideas but like everyone else in office or running for office she is carefully avoiding the huge deficit and gigantic debt. All Warren and the other Democrats can think about is new programs and the taxes which might pay for them.

The first bill we need to pay is the deficit. President Clinton and Speaker Gingrich paid down all the 30 year bonds, the 20 year bonds, and were working on the 10 year bonds. The national banks around the world persuaded them to cease. Our bonds were their reserves.

The Bush tax cuts turned the pay down around and started rebuilding the debt. The Great Recession kept Obama from cutting the deficit. He was able to only reduce spending with sequestration. Trump’s tax cuts on top of Bush’s means we must borrow 40 cents for every dollar we spend. Our national debt exceeds by more than 15% our gross national product. If it can’t be turned around we will be a Greece or Italy.

John Kennedy’s words may never be more important than now. They apply to those in power and those who want to be. “Ask not what your country can do for you; ask what you can do for your country.” I must include raising taxes to President Reagan’s level and eliminating loopholes for a fair tax. We are about to drown in red ink so reducing the deficit and lowering the debt must be done in 2020. We do that by dumping Trump, who likes bankruptcy, and putting in a conservative or moderate Democrat.

Cut the Debts

14 Thursday Mar 2019

Posted by Commentary about the Blue Marble in Deficits, Politics, Taxes

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I just ate at a Chinese Buffet and my fortune cookie said “Blessed are the children for they will inherit the National Debt.” I would add state debt. Why do we elect people who kick the can down the road and blame the other party? We all need to complain to the gutless legislators in D.C. and Springfield that are more interested in getting re-elected and padding their own pockets than decreasing debts.

Fixing the problem is easy if the people we elected had guts and weren’t full of crap!

Social Security Balanced Budget

05 Tuesday Mar 2019

Posted by Commentary about the Blue Marble in Budget, Deficits, Social Security, Uncategorized

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In Ken Yanko’s March 3rd Letter to the editor concerning Social Security, he left out one extremely important fact. During President Nixon’s time, he incorporated Social Security into the general revenue for the Federal Government. Because more money was coming in than going out, the excess funds could be used to balance the budget! It’s a lot like some of the schemes our current and past Illinois leaders have come up with to balance the Illinois budget!

As less money is coming in than going out, they now want to find some way of divesting themselves of the deficits from Social Security. Incidentally, it was never planned to cover all it does today.

Bravery Gets My Vote

15 Friday Feb 2019

Posted by Commentary about the Blue Marble in Deficits, Legislations

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I am tired of people wanting my vote by saying they will cut my taxes. I consider them to be stupid or incompetent since my county, my state, and my country are already running a deficit. Cutting taxes almost never raises revenue. Greater demand of the product and more employees may increase revenue a little. Remember Reagan raised taxes.

The Bush tax cut changed us from paying off debt to running up trillions in debt. The Trump tax cut is costing us trillions more. We just passed $22,000,000,000,000.00. Rauner’s holding off on bumping the tax back up has cost us billions.

Nothing good will come from continuing to elect financial incompetents who just want to get re-elected. It takes courage to do what is right!

Seek Answers Before November

09 Sunday Sep 2018

Posted by Commentary about the Blue Marble in Deficits, Economy, Taxes, Voting

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The average worker has had an 11% raise over inflation since 1977. The average CEO had that much last year alone. The average professional baseball, basketball, football, and hockey player got much more with the stars getting outrageous increases. Many CEOs make over a thousand times more than the median worker. Why aren’t the workers of America rightly upset?

The massive corporate tax cut that was to wend its way down to those median workers who desperately need sizeable raises didn’t make it. Less than ten percent have used the money to help their workers. Most directly or indirectly raised their salaries, increased their stock price using stock buy-backs, or purchased another company. Since almost 90% of our country’s wealth is owned by less than 1% of us, the massive tax cut did nothing for 99% of us.

The trickle down economic philosophy means the fire hydrant water floods into the fire hose but a trickle comes out the nozzle. If that happened at a fire people would demand answers. Why not now? If the economy is doing so well why are millions of workers getting little or no pay increases? Why are the workers on bicycles when the upper managers are in Ferraris? Newspapers, magazines, and TV have shown only a small interest in the situation. The administration and the Republican congress said their tax cut would help low and middle class Americans more than the rich before the cut and while campaigning. Why aren’t they asked why you aren’t being given raises like the upper managers and CEOs? Also ask who is going to pay for the massive debt and deficit of over 1.5 trillion this year. Those are good questions to ask. Let’s see if we get truthful answers.

Vote For Financial Responsibility

14 Tuesday Aug 2018

Posted by Commentary about the Blue Marble in Deficits, Taxes

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Morris is an unusual Community in many respects. The most unusual is the town’s great financial shape. Perhaps it has been luckier than most small towns, big cities, states, and the federal government. Responsible leadership has helped here.

Illinois has been mismanaged for decades. Governor Thompson’s Chief of Staff was later Governor Jim Edgar. He was credited at the time, now discredited, for coming up with the pension payment plan to balance their budget. Instead of making the payment needed to keep the plans current, they ramped the payments so they paid a little causing the more and more to be paid later. It just kicked the can down the road. Governor Blagojevich was faced with a budget deficit so he borrowed money from the plans and didn’t make the needed payment.

Reducing the income tax is also a contributing factor in the states’ budgetary operating deficit, its yearlong balance of payment deficit, and pension shortfalls.

The deficits can be fixed with bi-partisan action and doing away with all the income tax deductions and exemptions. We should vote only for people with the guts to fix Illinois’ problem instead of just getting re-elected. Most other states don’t have these reductions and exemptions.

The Trump tax cut has put our country into much deeper debt. Instead of paying down our national debt it is exploding during the time we should be cutting it. If we are increasing our debt during good times, what will we do during the upcoming bad times?

Both the state and federal governments need to act responsibly and quit wasting money to get re-elected and increase revenue before it becomes unmanageable. Make the person wanting to represent us explain exactly how they expect to solve the problem whether it is raising taxes, cutting expenses, or something else. Perhaps a thousand word explanation of their personal ideas, without mentioning the other party or anyone in the other party, would help us decide who to vote for. If they can’t tell us, perhaps it’s because they have a dearth of ideas.

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