Letter: Yes, it is a spending problem
The president claims we do not have a spending problem. Our annual revenue collections are $2.2 trillion. Our annual expenditures are $3.4 trillion. Mr. President, we have a spending problem.
The president has condemned tax loopholes that allow corporations to avoid paying taxes, yet his tax increase bill to keep us from going over the financial cliff contained $40 billion in Obama-mandated corporate tax loopholes. Such hypocrisy!
The president refuses to negotiate on increasing the debt limitation. Really! So be it. This past congressional session the Mack-Pence bill was introduced which accomplished two things: It eliminated base-line budgeting and called for a 1 percent across the board reduction each year. Can you imagine the howls of anguish over cutting one penny per dollar to be spent? If kept in place, the budget would be balanced in six years and our debt to GDP would be reduced to a manageable 18 percent.
My suggestion to Congress is to pass an increase in the debt limitation and include Mack-Pence in the legislation. If the president or Senate Democratic Leader Harry Reid have no alternative that includes solutions for debt and deficit, then the ultimate shutdown of government is their fault.
The three bond rating agencies have put us on notice: Solve the deficit problem or face another rating downgrade. Fed Chairman Ben Bernanke has been issuing this warning for some time, only to have the warning fall on deaf ears. If you ask average people on the street who owns the majority of our debt, they will probably answer China – and they will be wrong. It is the Federal Reserve. The proverbial can has been kicked down the road for four years. The time has come to resolve the debt and deficit issue.
ROBERT C. WASHBURN