Hail Armageddon

Posted by on Mar 01, 2013 at 9:20 am

Because of this year’s payroll tax increase, millions of American workers have had to tighten their belts by precisely 2 percent. They found a way. Washington, spending $3.8 trillion, cannot? If so, we might as well declare bankruptcy now and save the attorneys’ fees.

The problem with sequestration, of course, is that the cuts are across the board and do not allow money to move between accounts. It’s dumb because it doesn’t discriminate.

Fine. Then change the law. That’s why we have a Congress. Discriminate. Prioritize. That’s why we have budgets. Except that the Democratic Senate hasn’t passed one in four years. And the White House, which proposed the sequester in the first place, had 18 months to establish rational priorities among accounts — and did nothing.

When the GOP House passed an alternative that cut where the real money is — entitlement spending — President Obama threatened a veto. Meaning, he would have insisted that the sequester go into effect — the very same sequester he now tells us will bring on Armageddon.

Good grief. The entire sequester would have reduced last year’s deficit from $1.33 trillion to $1.24 trillion. A fraction of a fraction. Nonetheless, insists Obama, such a cut is intolerable. It has to be “balanced” — i.e., largely replaced — by yet more taxes.

Full story.

2 Responses to “Hail Armageddon”

  1. MT Geoff on 1/01/13 at 4:04 pm

    “Tighten our belts by precisely 2%…” Well, no, most of us have to tighten by more than 2%. Depending on your taxes and insurance situation, that 2% was off the top; by the time it gets to your take home pay, it could well be 3-4%.
    In a household budget, that’s likely to come out of the indulgences like eating out or buying a couple of books — exactly the spending on which economic growth depends.