Paul Ryan’s budget clashes with the ideas of the Republican Party. They want to cut spending and this goes against the Democrats who want to build protection into the budget.
But what would the budget, that Ryan is suggesting, do for Americans?
- Drop the income tax from the rich taxpayers down to 25%, this is a 14% drop from the current rate of 39.6%
- Increase the spending on defence programs
- Cut spending on non-defence programs
The budget ceiling
The difficulty in the past that many governments have struggled with is the debt ceiling, which, when reached, is raised again for the government to continue paying the running costs that are incurred on a daily basis.
The idea of the ceiling was to reduce the possibility of the current government to overspend; the ceiling prevented this. The system worked until the debt became out of control. The way to solve the problem is to raise the ceiling when reached. If this doesn’t happen then the government has to shut down, like the events of last year, 2013.
This seems to portray the image of a payday lender’s customer who can’t pay back the loan. The loan company then rolls over the debt and provides the person more money, which they are not able to afford. What the alternative is will be the collapse of the current monetary system running. This is the only way out of the current situation; the reason for the limited ceiling lifts is because the government are scared of the outcome of this collapse. Many people suffered in the global collapse of 2008. Many are still suffering from the consequences of this, and the collapse of the debt ceiling could be the end of the current way of life.
But if the government disagree on the ceiling budget then there is the possibility of the problems faced by those employed by the government, where the economy will be hard hit because of the lack of money and funding going into local economies, because of the large number of employees that are under the control of the government.
The problems of the budget
Therefore, if the politicians can’t agree and the government sends staff home, the economy suffers. If Ryan’s proposed budget gets accepted the economy is going to take another hit, because the wealthy are no longer going to be paying money they can afford, to help support the country; instead this is going to be funded by those people who have less money.
It makes you wonder about the proposed cuts, it is not giving to those people that are in the greater need for money. They are reducing the amount of tax for those people who can afford to pay. Does this seem like a budget that supports the working class people of America? Is it even right to consider a budget that outlines a plan, which reduces the tax pressure on those who can afford it? If this is just one proposal, how many other items are they going to slip into the budget to make those with less money in the beginning, poorer and the rich people richer? This budget will divide the areas between the rich and the poor to a point where there is no return.
It’s not a budget that has grounding; it is not about reducing the tax burden for those people that need it, but allowing the rich to get richer at the expense of the poor.