Can We Talk About Spending Cuts, Please?...

We are going to be hearing some fierce debate in the coming weeks, and perhaps months, about the expiration of the Bush tax cuts from 2001 and 2003. While I do see this as something that we should be debating, the fact remains that the expiration of these tax cuts, as they will be allowed to expire by The Master and Commander, will only affect the top three percent of households in the country. The problem with the equation, however, is that these are the three percent of households that run the small businesses that create the jobs that we need so badly right now. I am hearing from the Master and Commander's Money Manager that they are now, after record-setting spending and borrowing, concerned about the growing national debt, and believe that allowing these tax cuts on people making more than $250,000 a year to expire will help bring down the deficit. Perhaps it will, but I also believe that the expiration of these tax cuts may have an effect on job creation by enterpreneurs. There will be a change in their bottom line and that change could result in them becoming wary of creating new jobs. Unlike the federal government, most people spend less when their income is reduced.

While all of this debate about the tax cuts is needed, I would very much like to see our government leaders, especially those on a particular side of the aisle, talking more about spending cuts. Spending cuts? In the middle of the worst economic crisis in history, with less and less money coming in, you want us to spend less? Now, that's just crazy talk, stupid constituent! There are so, so many ways in which our local, state, and federal governments can cut down on their spending, much in the same way that they have all seen the rest of America do during this crisis. We are not holding the federal government and this administration to the spending cuts that we should be seeing.

For a great example of government waste, click here to see a bill from the U.S. IRS issued to an Orange County resident for 1-cent. Now, of course, this is a drop in the well, nothing compared to other spending, etc. etc., but it is a good concrete example of somewhere we could start - proof positive that there are places that we could cut wasteful spending - most likely proof positive that if we are seeing waste like this, there is also waste elsewhere that we could cut.

So, as we all get caught up in this debate on the tax cuts, let's watch for the slight of hand and these politicians try to take our eyes away from where we should be looking - forcing them to spend less and save more, just like the rest of us are doing.