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Back You are here: Home Columns Weekly Columns For Your Consideration For Your Consideration: The Precipice

For Your Consideration: The Precipice

By CHARLIE ALLO
Contributing Writer

The focal point of most news stories appears to be the approaching “fiscal cliff”, but this is just one part of the problem the nation will be experiencing on December the 1st. 
Political leaders of both parties are reluctant to present a concise picture of the problems the nation is facing, and the actions that will be required to correct these problems. 
The problems are continually pushed into the future, but these actions are only going to make addressing these problems much harder.
The President has presented his plan to Congress, but it has not been received as an honest proposal; this would seem to be a reasonable evaluation of the plan, given the fact that there is nothing in it that would even approach resolving the fiscal and economic problems that are continually worsening.
One suspects the intent is to push the debate to a point that would force those opposing the plan to make irrational decisions to prevent the closing down of the government.
One might be a little confused at the President’s position that if the Republicans fail to increase the taxes on those making more than two-hundred and fifty thousand a year, they will be responsible for increasing taxes on the middle-class.
The problem with this position is that it fails to acknowledge that it is the President that is increasing the taxes on the middle-class because he refuses to sign a bill that does not tax those he considers to be rich.
Sorry Mr. President, but the increase in taxes for the middle-class will be on your head. There were sufficient reasons given for not increasing the taxes for those making $250,000 a year; the main point was the fact that a good number of individuals in this category are independent business people that do not separate their business and personal taxes, as corporations do when they file.
It has been suggested that forty percent of the employees in the independent sector are employed by these individuals. 
To raise taxes on these individuals will reduce the level of taxes received and increase the number of unemployed. The other point to be made is that there are sections of the country that have a very high cost of living expense, and the figure that the President is using does not have the same value in these areas as it has in the rest of the country.
One needs to look at all the actions the President has taken since he has been in office to get a proper perspective on what is happening to private sector businesses.
Any action that puts more of a demand on a business is going to decrease its profits, which in-turn, leads to a reduction in the workforce, which leads to a reduction in tax collections. Not to worry, the government is there to help you out; there’s unemployment, food stamps, and various other public programs to support the individual during hard times, but this help is creating more of a strain on the individual tax payers as a result of the greater demand for revenue. The problem with this picture is that the public sector positions are growing at a rapid rate, and this is causing a contraction in the private sector; this scenario can only lead to an inhospitable economic private sector environment.
The position the government is taking is going to put the nation back into a recession, but it will not be a result of just going over the “fiscal cliff”; one can attribute it to The Affordable Healthcare Act, the expansion of the public sector employment, the expansion of regulations placed on businesses, the expansion of coverage in public assistance programs, and the inability of our government to address these problems that are leading us deeper into debt.
The last thing the Congress needs to do is allow the President to extend the debt ceiling without going through the House; this would ensure that the nation would go into a depression. The President’s actions are destroying the portion of the private sector that enables those in the middle-class to move vertically in our economic system.
One finds it difficult to have much hope in resolving these problems, given the track record of the Republican Party.  It’s time for the politicians to start to act like responsible managers, rather than politicians.