New National Sales Tax on the way

Are you ready for more taxes? Get prepared because a new bipartisan group is proposing more taxes without actually fixing the system. I think that congress will actually take this because it removes responsibility from the House of Representatives for deficit spending. This could be the beginning of another slippery slope. When the 16th amendment was passed it was supposed to be an excise tax that ended up being interpreted as an income tax. Now, President Obama is talking with his advisors about the bipartisan policy center report to discuss implementing this new idea.


We all know that President Obama is a Progressive Liberal through the actions that he’s taken since he’s come into office with things like “Obama care”. This bipartisan policy center is headed up by “Former Federal Reserve Vice Chairman Alice Rivlin and former Republican Senator Pete Domenici -- both veterans of Washington's long-running deficit wars -- headed the 19-member group organized by the Bipartisan Policy Center, a think tank.” Could this be another nudge by using the Overton Window?

The proposals by the commission are as follows:

• Tax holiday on Social Security Tax

• Soft drink tax

• 6.5% national sales tax

• Tax health benefits with no pre tax deductions

• Increase payroll taxes

• 4 year discretionary and military budget freeze

• balance budget by 2014

• Allow increase of spending paced to economic growth

Will this actually be a solution or a way for Congress to keep spending without having any accountability? Representative Brian Bilbray said that congress needs to consider this, but he would like to see a phase out of the income tax over the next 10 years. Will this actually happen, maybe, but probably not. Congress seems to think that the American Public is a credit card and they need a credit limit increase. While the rest of Americans are tightening their belts, Congress is looking for ways to raise revenue while not tackling the big issue, spending.

Even “Tea Party” sympathizers think that we can do cuts without making cuts to Medicare, Social Security, and DOD. Some “Tea Party” members have been seen holding signs saying “get your government hands out of my Medicare.” Does this actually reflect how we the people understand how these entitlements work?

Social Security and Medicare were set up as insurance programs, like life insurance or health insurance. Most people don’t actually use their insurance, but in case you need it, it’s there. When Social Security was implemented the life expectancy was around 61 years old for men and 63 for females. The likelihood that anyone would use it was very slim, but if you lived that long you had something to support you. Now the average life expectancy is around 80 years for men and women that means that the average citizen will use Social Security for about 20 years as a retirement program instead of insurance.

I think these new proposals will actually make it through Congress. I think that we’re heading down a slippery slope where not only will we have more taxes and higher taxes, but this will allow congress to continue spending. Congress is getting to start out at a low rate so they can raise it over time. The question is if we do this, will you pay down our debt or just keep spending? I would like to urge everyone that reads this article to contact their U.S. Representative, tell them those new taxes and revenue raising isn’t the answer, but actually cutting programs like Social Security, Medicare, and the DOD is the better alternative. If we continue down this road within the next 10 years the middle class could be at a 66% tax bracket and the upper class and small business owners could be at an 88% tax bracket according to the Heritage Foundation’s Brian Riedl on FBN.