Who is paying for the tax rebates?

31 05 2008

First off, I like the idea of the government taking less taxes out of my paycheck.  But there’s the issue of who’s going to make up the difference.  If it creates more debt for the government, which has to be paid back with interest, who has to pay for it?  It will be us taxpayers, in the future.  If that’s the case, then I don’t want it.  Look at it this way: if I needed the extra $1200 right now, I could either take out a home equity loan or I could get a cash advance from my credit cards or just put it on a credit card and not pay it off right away.  But I don’t do that, because I don’t want to pay interest.  If the government isn’t spending less while taking in less taxes, then there will be interest to pay.

Should the government cancel the tax rebates in the future?  I’m not saying they should.  I think the best solution is for them to spend less.  The government should run its part in the economy like a business (but with the people’s best interests in mind).  That is, if we can’t afford something, don’t buy it.  Although, it’s understandable why the government doesn’t spend responsibly like that, because most consumers don’t.  (The national household savings rate in 2005 was -0.6%, meaning the average household was spending more than they made.)

I’d like to hear your thoughts on this, but please avoid blaming President Bush for everything.  He has his flaws, but let’s spread the blame around the government, like it should be.  He’s been blamed for everything wrong in our country, and he’s not that powerful.  Our government has been running up the national debt for a long time.  According to this website, Congress has spent more money than its income in every year since 1969.  So it’s not the fault of just Republican presidents — it’s a mindset in our country that needs to change.

Speaking of the national debt, did you know that in 2006, the U.S. government paid $406 billion of our money on interest payments to the holders of the national debt?  That is just the interest.  The national debt is currently $9.4 trillion!  (I don’t think we can really grasp how big that is…)

Could our government become bankrupt?  Our politicians need to be having this discussion instead of assuming things will keep going as they have been.  But it seems that no one wants to take responsibility for all this spending and debt, instead blaming the other political party.  We must get beyond whether someone is a Democrat or Republican, and do what is best for our country!  I’m afraid it’s going to take some major financial catastrophe to wake people up and realize the importance of our debt problem.

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