Higher taxes alone will not balance the budget
If anyone thinks the $60 billion dollar per year tax increase on people earning over $450,000 per year is all the tax increase needed, keep in mind the Bush tax cuts amounted to $300 billion per year. The $60 billion is just 20 percent of what is needed to even start to rebalance revenue with expenditures. Additionally, we need about $3 trillion more dollars to pay for the wars in Iraq and Afghanistan.
Something must be done when millionaires like Romney have to not claim all the millions he gives to the Mormon Church each year to get to an effective tax rate of 14 percent. If he had claimed all his deductions in 2010, his tax rate would have been around 10 percent. Let there be no doubt why he refused to release his tax returns for the years prior to the start of his campaign for president.
Much of our federal tax code could be eliminated if we simply passed a law requiring a minimum combined federal tax rate of 30 percent for corporations and individuals in the top tax bracket. It would be a true fair tax.
However, taxing the wealthiest will not balance the budget. Spending on Medicare and Medicaid is what is terribly out of balance. I believe taxes supporting these two programs must be raised. It really does not matter if the increase is in payroll taxes or a national sales tax, these programs are here to stay. We older taxpayers cannot expect to pay a little over a hundred dollars per month for Medicare parts A and B and ask everyone else to pay more.
Republicans must agree to close tax loopholes for corporations and the wealthy. Democrats must agree to modify Medicare and Medicaid by vigorously prosecuting fraud and increasing premium for Medicare recipients who can afford the increase. The success of Medicare is its greatest enemy. By extending and improving life, the cost has skyrocketed.