Common sense and the Federal budget

What's wrong with spending cuts?  Nothing really.  But, when you think about budgets there's another side - income.  If all Congress and the President does is look at spending then they ignore one of the most valuable budget balancing measures - taxes.

Think not?  Here are the facts.

According to the President's Debt Commission reforming the tax code by 1) lowering tax rates for individuals and corporations, and 2) reducing or eliminating tax breaks in the tax code would yield over $1 trillion, that's right TRILLION, in additional tax income!  Depending on which version of the numbers you like the 2010 deficit is $1.3 trillion.  Simplifying the tax code and eliminating tax breaks by itself solves way more than half the problem!  Even if all tax breaks were not eliminated, say the mortgage interest deduction, tax rates could still be reduced, though not as much, and still yield over $1 trillion in additional revenue!

Adopting President Obama's proposed increased taxes on individuals making over $200,000 and couples over $250,000 would yield over $1 trillion in additional revenue over 10 years according to the CBO!  Perhaps the most well to do Americans should pay a bit more.

Letting the Bush era tax cuts expire would yield over $3 trillion in additional revenue over 10 years according to the CBO.  You remember the Bush era that lead up to the near collapse of the US financial services industry and trillion dollar Federal bailouts that contributed to ballooning Federal deficits.  Perhaps they weren't all such a good idea.

Common Sense's point is that balancing a budget and reducing debt is about BOTH controlling spending and generating revenue.  To try and solve the budget deficits by focusing only on spending will lead to gutting programs that benefit many, often the most vulnerable, Americans like your parents on Medicare or the single mother that can't afford to feed her children while working a minimum wage job and needs food stamps.  Common Sense thinks America is better than that, much better.

Making changes to the tax code that eliminate corporate welfare, reduce or eliminate excessive and irresponsible tax breaks for everyone, and have more reasonable rates for everyone is just plain common sense.  Not doing so because it offends the purity of political dogma is not only irresponsible but clearly leads to devastating social outcomes that ultimately are bad for all Americans.  It's time for some common sense discussions about taxes.