Tag Archives: Republican

The Discretion of the President to Plan Cuts Under Debate

The Discretion of the President to Plan Cuts Under Debate

President Barack Obama has been pretty vocal about the effect that automatic budget cuts are going to have. These warnings are getting increasingly ominous from the President and the Congressional Republicans are preparing to counter these warnings as far as possible. Basically the Congressional Republicans are looking to aid the administration with more flexibility and that too in instituting the 85 billion dollars worth of cuts. They believe and have said that this one proposal could actually serve the vital purpose of shielding the most important programs. This should be done while the political fallout is shifted to the White House.

English: In January 2009, President of the Uni...

English: In January 2009, President of the United States of America, George W. Bush invited then President-Elect Barack Obama and former Presidents George H.W. Bush, Bill Clinton, and Jimmy Carter for a Meeting and Lunch at The White House. Photo taken in the Oval Office at The White House. (Photo credit: Wikipedia)

This plan is undoubtedly facing extreme opposition from the administration. The administration has declared that it isn’t really planning to do much to soften the blows that have come upon the domestic and military programs. However, what’s worth the consideration is the fact that this is leading to apparent racks in the Democrats’ camp. This is essentially because it’s the lawmakers from the states who’re literally standing face to face with the deepest cuts. Now, this obviously goes on to say much as there are high chances that the Democrats might also be prepared to go along with the Republicans, simply so that they can manage to avoid arbitrary cuts to military programs as well as social services.

With the nation reeling under debt and that’s easily reflected with the increasing number of sign ups for programs like online debt consolidation, this political turmoil over the cuts seems literally unwanted. There’s hardly much time left until “sequestration” makes its way. Basically, the across the board cuts also known as sequestration have been scheduled to commence. It’s not surprising that the administration officials are not taking to this favorably and they’re still talking about the consequences to come in alarming terms. This is in spite of the fact that there was hardly any evidence of hardcore negotiations with the lawmakers such that a deal could be reached to avoid them altogether.

In spite of all this, a South Carolina Republican, Senator Lindsay Graham gave the impression of advancing the debate on Monday. He being a leading defense hawk expressed that this is actually the ideal opportunity to carry out the big deal. He said that he was willing to raise revenue of around 600 billion dollars provided the Democrats would be willing to reform entitlements. He believes that they can then fix sequestration together.

The secretary of homeland security, Janet Napolitano expressed that the automatic cuts would leave the country not so very well guarded. In fact, she also believes that this can actually leave the nation ill-equipped to meet terrorist threats. This is obviously going to turn into an inconvenience for millions of travelers too. There came further warnings from the interior secretary, Ken Salazar. He warned about campgrounds closing down and firefighting efforts being scaled back. He also spoke about lesser seasonal workers who’ll be hired.

Ms. Napolitano opines that there’s always a threat looming large. Though they plan to do everything they can to minimize the risk involved, yet it’s a fact that the sequester makes things really very tough.

It’s a known fact that efforts are being made to shift the responsibility completely to President Barack Obama and to cushion the attacks by the White House. Now, what’s important is the fact that Republicans were supposed to unveil legislation on Tuesday and they said that this would literally alleviate their biggest concerns. This measure is supposed to be effective because it’ll allow for agencies and departments to amass programs that had long since been proved to be ineffective. This is almost like a measure to prove that there were functions like say critic federal functions as well as air traffic control and meat inspection that had been spared.

Now, if the Congress happens to grant the White House the authority to protect the air traffic controllers and other such patrol agents, then the administration’s carefully devised plan is bound to lose impetus.

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States Consider Alternative To State Income Tax

Alternative To State Income Tax

A trend in tax filing is already taking place in some Republican led Southern and Midwest states. Other states are considering a similar plan to eliminate their state income taxes and replace it with a higher sales tax to make up for loss of revenue. Legislative watchdogs and tax reform experts can only speculate to the success of these new tax reform campaigns.

The Push for State Tax Reform

English: Map of US states by state tax as a pe...

English: Map of US states by state tax as a percentage of average income per capita, 2007. Legend: 5%-5.5% 5.5%-6% 6%-6.5% 6.5%-7% 7%-7.5% 7.5%-8% 8%-8.5% >8.5% (Photo credit: Wikipedia)

Since there is little hope for any more changes with the federal tax system, many states are making plans to spur economic growth within their own region from changes in tax law. Reform activist agree that any major tax changes for this year will have to take place at the state level. However, they do not agree that states will be successful, or that this strategy is the answer to the reform problem. The states of Texas and Florida have no individual income tax which makes them attractive to residents and businesses.

States Considering Lower state income Taxes

Louisiana and North Carolina are two states who have made recent announcements with similar plans. Kansas cut those taxes last year and are talking of more reductions for the coming year. Oklahoma wasn’t successful in their attempts last year and may push another attempt through this year. Alaska eliminated their state income tax but were able to replace the lost revenue with income from the oil industry.

An Example of Republican Economics

This type of reform is an example of “trick-down” economics that was adopted by many in the Republican party 30 years ago. Eliminating the state individual tax filing would give citizens more money in their pocket and initiate consumer spending. Taxing consumers products and services would replace the lost revenue.

The Effect on Socioeconomic Class

The lower and middle socioeconomic classes would be hit the hardest with the change. Many consumers who didn’t pay the state any taxes on their income previously, would now be paying more for necessary items. Additionally, people who would normally receive a refund would no longer qualify for that income assistance.

Many states are making plans to reform their tax laws and alter their state income taxes. As the year progresses, it will be interesting to see other creative economic plans take shape.

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