It's been a lovely four week hiatus from blogging, but Biblical Conservatism is back, albeit in a different way. As I stated long before the election, Biblical Conservatism will now become a twice a week blog, focusing not only on news but on more topical issues.
Today, we're going to talk real math on the President's Fiscal Cliff solution...raise taxes on people making over $250,000 a year. Yep, that's basically the entire stated plan. Sure, he's used cliches like "balanced approach" but really the only stated thing he has said he would do was raise taxes.
So, how much would this plan really raise, exactly? I'm so glad you asked. The number being repeated is $850 Billion. That number does sound very serious, doesn't it? Sure, until someone tells you that's the TEN YEAR PROJECTION. So that means the annual increase in revenue is only $85 billion.
Let's compare that to the last federal budget, 2012, passed under President Obama's tenure, shall we? In 2012, the deficit was $1.327 TRILLION on a $3.796 Trillion budget. The math on that is this: about 35% of the budget was borrowed. Quick math tells us that this "increase in revenue" raises only 6.4% of the actual deficit.
Let me give you a real world example, shall we? Let's take an American family with a household income of $60,000 per year. That family spends above and beyond the money they have in line with what the Federal Government does, which means they spend $81,000 per year, every year. But hey, good news! The boss is giving you a small raise this year! That's right, a 2.24% raise (which is what the new taxes the President wants equals in tax receipts). So now, instead of having $60,000 per year incoming, this family has $61,334. Yahoo! That's totally going to make up for the fact that the family is spending $21,000 more than they have...oh wait, no it doesn't. It's a drop in the bucket.
Actually, to cover the deficit that family has, they would need a raise incoming. revenue 35% JUST TO COVER THEIR CURRENT EXPENSES.
Friends, in America there is no way to raise that much revenue without flat out confiscating every cent earned over $250,000. That will work precisely ONE TIME, because after that, nobody will work one second harder than it would take to earn $250,000 per year. It also would equal a massive depression because businesses would stop hiring people. It simply wouldn't be worth the risk.
As I've said for years now, our real problem isn't that we don't have enough revenue. The problem is we spend far, far too much money. We will not solve our problem without dealing with our spending. Period. However, I believe we can expect no such logical approach.
America, in it's infinite foolishness, saw fit to re-elect the petulant child President Barack Obama. He is now emboldened. Friends, I fear for America. I believe we are headed the way of Greece. The fact that Obama was re-elected means we are in trouble, fiscally speaking, America. Katy, bar the door. We're in trouble.