Why Not Raise the Legal Borrowing Limit?

The United States faces a fundamental disconnect between the services that people expect the government to provide, particularly in the form of benefits for older Americans, and the tax revenues that people are willing to send to the government to finance these services.

The nation is facing a big money moment. Washington law makers must raise the legal borrowing limit – the money has already been spent.

Warnings had been sent. Back on January 25, 2001 when Federal Reserve Chairman Alan Greenspan famously concluded that the federal government faced a huge $5.6 trillion budget surplus over the next decade and the nation needed a tax cut. Congress leapt to the opportunity. But the lawmakers missed the rest of his message.

"Economic relationships are different from anything we have considered in recent decades and the projections could be wrong." His conclusion; "consider a short circuit for the tax cuts if targets in the surplus trajectory are not hit."

No one listened. Instead we went on an $11.4 trillion spending spree to fight two wars, expand Medicare, finance a sequence of gigantic tax cuts and battle the greatest economic challenge in two generations.

President Obama is asking the wealthiest Americans and biggest corporations to give up some of their tax breaks and special deductions. Why should the rich pay less then the average Joe? And why should large oil companies and corporations pay no tax at all? These were brought on by the Bush era and should be removed.

House Speaker John Boehner says the solution to the debt crisis isn't complicated. He says if you spend more than you take in, you have to spend less.

House Speaker Boehner in his speech last night never mentioned once about a fair tax to rejuvenate our revenue. The House Speaker wants to cut services and bully the Americans by saying "President Obama wants is a blank check and he’s not getting one."

I wonder what percentage Mr. Boehner pays in taxes.

Final compromise is necessary to seal a deal. President Obama made a stunning appeal for regular citizens to call or email their representatives to end what he called the “most dangerous game.”

“This is no way to run the greatest country on Earth. … We can’t allow the American people to become collateral damage to Washington’s political warfare,” Obama added. “If you want a balanced approach to reducing the deficit, let your member of Congress know.”

Call today.