Monday, October 14, 2013

Avoiding a Massive Republican Tax Increase

Morgan Griffith: The face of a huge tax increase.
While that almost criminally mis-directed Ninth District Congressman Morgan Griffith of somewhere near Salem talks arrogantly about being at the head of a new American Revolution, he fails to reveal one small detail. If his guys have their way and our country defaults on its debts, it could cost each of us a whole lot of money. Default would, in effect, result in a massive tax increase without any action by Congress.

One point almost nobody is making: When we default, our credit rating tanks and it costs a lot more money to borrow money. If that happens we will have nothing to show for the extra money borrowing will cost us. It is the very essence of waste. 

Our AAA credit rating right now allows us--as a nation--to borrow money at the lowest interest rates available. You saw what happened in Virginia when the Republicans started screwing around with paying the state's bills: our rating was downgraded and the cost of money went up, meaning we had to pay more for the money we borrowed to run the government (and yes, we borrow money, then pay it back when we collect taxes, same as a business does in order to operate).

So, let's start looking at the Republican shenanigans as what they are: a potential tax increase of enormous proportion. One that is totally unavoidable.

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