A balanced budget
is when total revenue equals or exceeds
total expenditures. For this Nation’s citizens, this is how personal
are managed. If a citizen spends more than is earned, financial
disaster is inevitable.
This is general knowledge to every American. Any private or public
financial crisis counseling takes the first step of establishing a
Congress is now on its fourth consecutive year of spending the American
taxpayer’s money without a budget. The result has been economic
the highest deficit in the history of the Nation.
decade of deficit spending has brought us to a tipping
point. This problem must be addressed and cannot be ignored away. The
first step is to reduce spending. This is the easier side of the
equation to influence quickly. Unfortunately, even drastic cuts alone
balance the budget. Our federal budget is broken worse than that. We
attack the other side of this equation also. We must raise revenue.
two possible methods. One is to raise taxes. The other is to lower
taxes (from the present rate) transfers revenue from
the private sector into the public sector to pay debts. If this were
uniformly across the economic spectrum, it would be ineffective. Less
in the private sector leads to less growth and a shrinking economy to
Higher tax rates will actually yield less tax revenue. Shifting the tax
increase to the upper economic class is unwise. Revenue on this end is
in private sector growth and less leads to less growth. Furthermore,
this level is the most mobile in our economy and can most easily go
leading to a shrinking economy. In all cases, more taxation leads to
growth. The source continually shrinks and results in a net loss. This
will not solve our budget problem.
second method, lowering taxes to raise revenue seems
almost counterintuitive. The first fact that must be established is
economy is not a fixed amount. It grows and it shrinks. Revenue in the
sector (Taxed money) does not grow the economy. It merely moves it from
citizen to another. This is similar to moving water from one side of
bathtub to the other. Nothing grows, whereas revenue in the private
grows more revenue and expands the economy. In fact it does this so
that the Occupy groups sprung up in protest of this success. The
termed this action as greed, but these citizens have put more revenue
economy and created jobs. To use our previous analogy, they have put
in the bathtub. Lower taxes leads to growth. A lower tax rate from a
source (the economy) yields more tax revenue.
only way to raise revenue to balance the budget is to
leave revenue in the private sector and therefore grow the economy.
only be done by lower taxation. A
taxation rate from a larger base yields a larger amount. This
is how our economy was designed to function. That being
there are times that call for a tax increase, national emergencies or
war. It is dishonorable to pass these debts on to our children.
Congressman, I will fight to leave revenue, here in
the 53rd Congressional District where it can
grow jobs. I will
oppose any federal spending of our tax dollars without the transparency
balanced federal budget.
NEWS ARTICLE: INDEPENDENT VOTER NETWORK: » A BALANCED BUDGET IS COMMON SENSE by Nick Popaditch