To the editor:
Last months letter reviewed how Americas debt has exploded. The blame Game does not enter into this. It just is.
It must be understood; Trumps tax cut is in effect for 10 years unless a law to terminate is passed by Congress. Well, the big beautiful bill just passed by the House of Representatives makes that cut, along with additional tax deductions permanent. The richest 10% will still enjoy 90% of the benefits at whose expense? The short-fall will be covered by tariff income (who actually pays?) and the ever-popular business growth. HAH! The Big Beautiful Bill will cause our debt to rise $1 trillion every three months instead of every six months.
At 36% of the federal budget, Social Security/Medicare are easy targets for vote-seeking politicians who vow to cut fat, fraud and waste. David Brooks, columnist for The New York Times, found Social Security/Medicare pays out 94% of revenue in benefits to the public.
Could it be our bureaucracy really is pretty efficient and run by competent civil servants? At 0.006% of the population, the civil service is also a pretty small piece of pie.
Right now, interest on Americas debt is higher than our defense budget. When our debt surpasses our Gross National Product, bad things will happen to Americas economy. What do we do?
Bill Janklow: If you cant raise tax rates, tax more stuff. Four areas of BIG STUFF:
1. Social Security taxes. The first $176,000 earned is taxed at 12.4%. Income over $176,000 is 0.0%.
2. Medicare taxes. The first $200,000 is taxed at 2.9%. Everything above is 0.9%.
The wealthy pay on all earned income just like we do.
3-4 Income on rent and stock dividends are subject to income but not Social Security/Medicare taxes. Why not?
C. John McEnelly
Huron
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