Higher Taxes and Spending Cuts

NEW YORK (CNNMoney.com) — A $9 trillion federal deficit over 10 years may be too hard to comprehend. But this part is easy: Such unwieldy amounts of debt could have an impact on Americans’ bottom line one way or the other — if not tomorrow, then the day after.

The U.S. government has been spending a great deal more than it has been taking in, and it is on track to do so well beyond the next 10 years. It has been borrowing money to make all that spending possible and it has to pay the money back with interest. How, you ask? By borrowing more.

The solution is straightforward if unpleasant: Shy of finding a fairy willing to leave trillions under Uncle Sam’s pillow, lawmakers will have to raise taxes and cut spending.


8 Responses to “Higher Taxes and Spending Cuts”

  1. 1 David Perez August 28, 2009 at 7:42 PM

    The only way that our economy can stablize is what was stated above, lawmakers will have to raise taxes and cut spending. This might not be very popular among the nation, but the fact of the matter is that there are no real better solutions. We have a huge deficit and we have to institute practical resolutions to economic problems. Gambling with new ideas to bolster the economy is too risky. Many people are losing their jobs, and the rate just continues to escalate.
    However, that does not mean that the temporary increase of taxes will be permanent. Nor does it mean that programs that are cut right now will be forever lost. Think of it as America trimming her waistline to create a healthier country. This is a tough time and people must sacrifice in order to close the huge budget deficit.

  2. 2 Larry Oppenheimer August 30, 2009 at 7:44 PM

    Plainly, there needs to be an increase in revenue, regardless of any change in spending, and taxes are the most significant source. All well and nice to say this, but the reality is that the American public has demonstrated time and again its unwillingness to face unpleasant realities (or should I say “inconvenient truths). The statement “it may be politically unpopular, but…” is very often made, but, once again, it has been shown over and over and over that the politically unpopular simply cannot be made to happen. Politicians don’t want to join the ranks of the unemployed.

    The truth is very bleak here: opportunity for change may arise when things are bad, but genuine significant change only actually comes about in response to out-and-out disaster. 9/11 changed things, just as Pearl Harbor did (though it is difficult to make the case that 9/11 changed much of anything for the better, even security strategies and procedures). Three Mile Island changed things. But what about Hurricane Katrina? Even with a disaster of that magnitude, many of the changes necessary to ensure events do not unfold the same way under similar conditions in the future have not been implemented. Why? Two reasons, that, at their heart, end up being the same thing: politics and economics. Those two are completely joined at the hip and can scarcely be considered separately.

    So what are we to do? Frankly, you got me on that one. Look at what is happening with health care right now. It seems clear to just about everyone that real change needs to happen (whatever you think that change should be), and just as clear to nearly everyone that real change looks less likely with each passing day.

    Higher taxes and spending cuts? I don’t think so.

    The result, of course, will be the same as it was when people refused to face the reality that the housing market could not go up forever or that Silicon Valley companies could not make a profit with business plans that involved giving everything away.

    Color me cynical, color me fatalist, but I’m afraid a cold, hard look at the history of the last 25 or 30 years will also show that I have to be colored realistic as well.


  3. 3 Ruby S August 31, 2009 at 9:46 AM

    As things tend to escalate and prices of major things like healthcare and education continue to go up, it doesn’t seem realistic to be able to afford higher taxes and even more spending cuts, however, I’m not sure what another solution can be. The U.S. seems to be digging itself a deeper and deeper hole and the people are having to suffer for it.
    Being a U.S. Citizen I do feel that we have to take on the concequences, but I don’t understand why more spending would be helping the economy at all. Yes, we do have to continue to spend in order to increase the flow of money, but are we spending our money wisely?

  4. 4 Kaleen Scott September 2, 2009 at 3:20 PM

    It’s sad that our economy is in the shape it’s in today because of the governments spending. We try to do good things even when it cannot be afforded, such as, bailing out general motors before they went bankrupt when the economy hit it’s ultimate low, etc. We will climb out of this whole, it will just take time.

  5. 5 marie moussa September 7, 2009 at 11:54 AM

    A $9 trillion federal deficit over 10 years may be too hard to comprehend. We have a huge deficit we need to have a solution. I believe the government can study how and where we are spending that money. By studying the problem of deficit we can get to a solution and stop repeating the same mistake.

  6. 6 Gina September 15, 2009 at 9:19 AM

    It is sad to think we a suffereing this much because of the government’s over spending. We all need to cut our spending untill we can come up with a better solution to come out of this 9 trillion dollar hole.

  7. 7 eldiel December 2, 2009 at 11:16 PM

    It’s sad that we are responsible for our governments mistakes. But think about we put them in power. We as a people are responsible for the future of our nation. We need to conserve, work hard to get out of this economic crisis. Together with Obamas promises, we can all hope for a brighter day. As for higher taxes and spending cuts, everything can’t always be the way we want. Somedays we have to roll with the punches and live to see another day.

  8. 8 Kali Hardcastle December 6, 2009 at 11:18 AM

    i just dont understand that the government continues to spend as it has over the last ten years, only making problems worse. didnt they realize the debt that was adding up? they borrow, they spend, they borrow more. its a never ending circle unless they do something. i definitely agree with the comment of increasing our revenue, part of that being taxes. however, i think that even our dependency on other countries needs to cut back a little. we invest too much in other countries and ours suffers. the government definitely needs to decrease their spending and stop borrowing so much that we cant pay back.

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