Obama’s Budget – Few Spending Cuts But Going Right After Our IRA’s

Why is creating a national budget where government must not spend beyond its means so totally absurd? Obviously, getting Obama to agree to any kind of entitlement spending cuts is completely out of the question so we have to ask, what must the tax rate for Americans be in order to eliminate our debt in 20 years? Whatever it is, it’s probably 75% or more and then inflation would literally wipe us off the map. The question is moot anyway because no matter how much taxes are raised, without cutting spending, there is no mathematical solution to catching up to the interest that continues to accrue on 16.5 TRILLION dollars. Everyone with a credit card knows all about how expensive interest is. Well, everyone except our own government, most of whom have their heads buried in the sand. What it all says to me is they couldn’t care less about our national debt. Stand by because failed policies will translate into more ineffective “stimulus” programs and an even steeper national debt which is projected to be 20 TRILLION by the end of Obama’s reign. Does anyone actually believe the bankrupting of America is not occurring before our eyes? Does anyone actually believe we will ever dig out from this sink-hole? The talking heads on the Obama band wagon have been fairly quiet, relatively speaking, on economic issues largely because the market has been in a five year bull run and wiped out previous all-time highs on the DOW and S&P 500. What’s the political excuse going to be when the next crash hits and the bull market giddiness is gone? Liberal economic policies will be at the very core of our fiscal demise. And the media’s darling will never accept any accountability for it, nor will they acknowledge the error of their misguided and blind devotion to him. But hey, what do I know? I’m not Chris Matthews.

Even worse is that Obama’s budget will include a new proposal that prohibits individuals from accumulating over $3 million in IRAs and other tax-preferred retirement accounts. Under current rules, some wealthy individuals are able to accumulate many millions of dollars in these accounts, substantially more than is needed to fund reasonable levels of retirement saving. The budget would limit an individual’s total balance across tax-preferred accounts to an amount sufficient to finance an annuity of not more than $205,000 per year in retirement, or about $3 million in 2013.  According to the White House, this proposal would raise $9 billion over 10 years.

Just a couple of questions to anyone out there:  Isn’t it just about time that we quit spending money we don’t have?   What usually happens when you find out that there’s a higher credit limit on your credit card?  Right, you spend more and owe more.  This is the most irresponsible government spending we have ever witnessed in the history of the United States.  The only word I can find to describe it is shameful.  Obama had the audacity to call the 6 TRILLION dollar national debt under President Bush immoral and unpatriotic.  Yet, he doesn’t see his 16.5 TRILLION dollar national debt as being a problem.  When will the insanity end?

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