Wednesday, January 26, 2011
State of the Union Address
In President Obama’s speech Tuesday night he said that America’s economy is improving "Now that the worst of the recession is over, we have to confront the fact that our government spends more than it takes in. That is not sustainable," he said. He proposed a five-year freeze on nondefense spending that would reduce the nation’s debt by more than $400 billion over the next 10 years. He agreed to work with congress on deeper cuts in the budget, and he vowed to veto bills with lawmakers' pet projects. He also promised a simpler tax code for small businesses. He wants Congress to eliminate the billions in subsidies to oil companies and to eliminate any tax breaks for the wealthiest 2 percent of Americans. I think that tax loop holes should be eliminated for all Americans if that is what he meant by tax breaks. If he meant that the wealthiest should pay more taxes, well then I disagree. Why should the wealthy pay a higher percentage just because they have worked hard and made a lot of money. If there was a flat tax rate, the amount the wealthy pay would still be higher just because of the math, but they should not have a higher percentage rate. We need to remember that the wealthy own big businesses and employ many people. They also spend and invest a lot of money which helps our economy. I found it contradictory that as he is saying this about cutting spending, he also says that the government needs to invest in biomedical research, information technology and clean energy technology. His goal is to have 1 million electric vehicles on the road by 2015 and 80 percent of U.S. electricity from clean energy sources, including nuclear and clean coal as well as solar and wind. These are great goals, but he doesn’t mention how our government can afford it when we need to cut spending. I would suggest that it be left to private industries to develop and market these things. I don’t understand why it is the government’s job to do this. Let these private companies profit from new technology so they can then employ people, become wealthy hopefully, and put money back into the economy.