Address public problems too long deferred
You get what you pay for and taxes are an investment we make as a society for the public services we need. What good is it to have a balanced budget or lower taxes if our schools are falling apart, our homeland security is poor, or sick people cant afford to get treatment? The question isn't what the government spends; its what you want the government to do. For decades the deficit has been an excuse to avoid pressing public needs, even though the deficit never seemed to cause any tangible harm. After all, the country prospered during this period. Besides, deficits have their uses, particularly when it comes to stimulating the economy. Its time to address some of these long-delayed problems in education, health care, counter-terrorism, child care and other areas. If the government needs more money, it should tax the wealthy and cut back on corporate tax breaks.
What Should be Done?
Let the estate tax and other tax cuts passed over the last three years expire as planned. The government should rely on taxes aimed at higher-income Americans and end tax breaks that only benefit big business. Expand spending on critical needs like education, health care and homeland security. Keep the promises we've made to the elderly and maintain Social Security benefits. Establish additional tax credits and deductions for higher education, child care and home ownership to help the middle class and lower-income Americans get ahead.
Arguments For This Approach
We cant go on ignoring the problems in our public schools and the fact that too many Americans don't have health care. In the long run, an ill-educated, unhealthy population will be more of a disaster than any deficit. Its better to raise taxes on upper-income people who can afford it than to put the burden on poor and middle-class people. Besides, tax rates are lower than they've been for decades. Sept. 11 showed that we need to beef up our domestic security to protect ourselves from international terrorism. The current deficit is a relatively small percentage of the total economy and probably won't cause any harm. Besides, the U.S.has had a deficit more often than not during the past three decades and we've managed to prosper anyway.
Arguments Against This Approach
The government can't keep spending money it doesn't have at least not forever. Deficits rob from our grandchildren, forcing them to pay for our wasteful habits. Its foolish to spend money now and ignore long-term, budget busting problems with Social Security and Medicare. If we don't solve these problems, in a few decades the government won't have the money to deal with anything else. Tax increases hamper growth. It's much better to let the people keep and invest their own money, which is what really drives the economy. Large, persistent deficits hurt the economy by driving up interest rates and slowing economic growth.
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