Why We Need a Compromise on the Debt Ceiling

The clock is ticking for the Congress to reach an agreement on the Debt Ceiling. The Debt Ceiling was created in 1917 and is used to cap the amount that Congress can borrow. The original Debt Ceiling was set at 11.5 billion dollars, and now the ceiling is at 14.26 trillion. Debt ceiling is usually raised at the time of a spending  hikes or tax cuts is the reason for the raising of the ceiling.

Now today's impasse is that Republicans with the help of their Tea Party base are finding the raising of the Debt Ceiling unacceptable, unless drastic cuts are made to lower the deficit. The cuts that the Republican propose are for 2.5 trillion dollars of cuts for the next ten years in exchange for the Debt Ceiling to be raised.

The Democrats on the other hand want to make it an 80/20 split between cuts and tax increases. Some of the options that the Democrats have mention was to get rid of tax breaks for items like yachts and private jets, and have even gone as far to rescind the Bush Tax Cuts from people that make more than 500,000 dollars. Meager hikes that only affect the wealthy individuals on luxury items.

The problem that arises is the the Republican Party does not want to increase taxes on anything. The idea of raising taxes on yachts or private jets is a non-starter. Pretty much it means do not tax anything or anyone, but only accept budget cuts to social programs. This is disturbing in American society. What is being set up is Un-American.

Here is why. One America is about setting up equal opportunity for all of its citizens. Hence in the Declaration of Independence our founding fathers wrote all men are created equal.( Now we know their understanding and what is accepted now are different, but the idea stays the same.) If all men/women are created equal should be allowed to have the same opportunity. This is where social programs helped equalize the opportunities  for people that were at a disadvantage.

 People who argue with this rationale say that once a person made it to the top that they are a self made man and owe no one for their success or should pay higher taxes. This is laughable. Anyone who was successful has had help. Lets take a store for an example. Minimum wage is 7.25 nationally. Living wage is considered about 11 dollars an hour. The person who starts a business usually pays minimum wage not living wage. Once some one has more money the wages do not change. These people that work 40hrs a week on minimum wage are more likely to rely on government assistance than people who make more. The sad thing is that its their labor that makes huge companies successful.

I do agree we need to lower our debt. If we do not we will be on a course to ruin, but we have to be reasonable human beings and not allow our greed to hamper this process. We are only as strong as our weakest link, and if we follow with only cuts we will become a weaker nation.