The future of our future

I am sure many of you, like me, are tired of hearing about this “so-called” fiscal cliff off of which we are about to fall.  In order for us not to fall, Democrats and Republicans must first put aside the emotional baggage of party allegiances or re-election strategies in order to decide what is best for the country, not for them or their respective parties.

So what is this fiscal cliff?

The term  "fiscal cliff" refers to the simultaneous spending cuts and tax increases that are slated to take place at the end of 2012.

For instance, the Bush tax cuts are currently scheduled to expire at the end of 2012. In addition, provisions that limit the reach of the AMT and cut payroll taxes are also scheduled to expire at the end of the year.

On top of that, automatic spending cuts, as per the language laid out in the Budget Control Act of 2011, are also currently planned for the 2013 fiscal year.

While the tax increases and spending cuts would reduce the size of the national deficit, most economists feel as though the sudden changes would plunge the country into another recession, especially given the fact that the country has been so dependent on fiscal stimulus over the past number of years.

The short of it is that the Democrats want to increase taxes on the rich and the Republicans are opposed to that; the Republicans want to decrease government spending and the Democrats are opposed to that.  Neither side wants to compromise.

However, do the Republicans speak for all the wealthy?

(Reuters) –  Warren Buffett, the legendary investor who changed the debate about U.S. tax reform in 2011 with a call for the rich to pay more, is now calling for minimum tax rates for millionaires.

In a New York Times editorial printed on Monday, Buffett suggested Congress move immediately to implement minimum taxes of 30 percent on incomes of $1 million to $10 million and 35 percent above that.

"A plain and simple rule like that will block the efforts of lobbyists, lawyers and contribution-hungry legislators to keep the ultra rich paying rates well below those incurred by people with income just a tiny fraction of ours," Buffett wrote.  "Only a minimum tax on very high incomes will prevent the stated tax rate from being eviscerated by these warriors for the wealthy," he added.  "So let's forget about the rich and ultra rich going on strike and stuffing their ample funds under their mattresses if — gasp — capital gains rates and ordinary income rates are increased," he said. "The ultra rich, including me, will forever pursue investment opportunities."

Do the Democrats speak for all Americans who are not wealthy?

In other words, should we have cuts in government spending; and, if so, which areas would you cut?  See diagram below.

What areas would YOU recommend cutting?

• Defense
• Social Security
• Medicare/Medicaid
• Education
• Transportation
• Homeland Security

Not an easy choice, is it?  Yet, cuts MUST be made.

In order to get ourselves out of the financial hole in which we place ourselves, we must increase taxes and decrease government spending – it is just that simple.

Well… it is just that simple to the general public, but not to Congress for some reason.   

Could it have anything to do with their future employment?