Vote Your Wallet

To the Editor:

When your debt is up to your waist, consider…how could going further in debt until it’s over your head solve your problem? Every sane person knows that would lead to bankruptcy. But that rationale is not obvious to our President, even though his Federal Reserve chairman pointed out our current course “is not sustainable.”

The US Government’s growing debt problem isn’t unique to America. It’s happening all over the world. Almost every single major nation of the so-called G7 will have a debt-to-GDP ratio that’s near 90 percent by 2015. The exceptions are Canada and Germany, only if Germany decides not to bail out Greece, Spain, Portugal, and Italy. The problem is, once creditors begin to fear more and more, paper will simply be printed by any country to pay their debts (and, of course, that’s what will happen), interest rates will rise smothering any recovery. And they could rise suddenly. That would force governments to spend vastly more money on debt payments than they expect or project. That’s the big problem right now in Greece, for example, who is paying about 7 percent versus Germany at 3½ percent on their respective bonds.

The excessive debt President Obama is creating will have the United States spending about 30 percent of its income from tax receipts on interest payments by 2015. That’s simply not sustainable. Eventually something will have to give…whether that’s taxpayers abandoning the country or the government vastly growing the tax base. That means higher town, state, and federal taxes for the majority of taxpayers. If that happens, it won’t just be the Greeks rioting in the streets. That is why 21 percent of people who support “Tea Parties” are concerned. Unfortunately, too many people here, just like those of Europe, have gotten used to getting something for nothing. And they’re going to be quite upset when the gravy train disappears.

While President Obama temporarily cut taxes this year by $173 billion, Chris Wallace of the Sunday Fox News Report recently pointed out that since taking office the President has passed more than $670 billion in 25 new taxes of which 14 taxes will affect those earning less than $200,000. These will go into effect over the next four years, while growing our debt by trillions yearly. Another campaign promise violation. Next on Obama’s agenda, the “Vat Tax” (a form of national sales tax) which taxes everyone even the very poor. By 2014 on average those earning over $100,000 will be paying close to 60 percent in taxes when you add up federal, state, and town taxes. Also add higher energy costs and increased health insurance premiums.

Increased taxes and excessive spending will undermine any economic recovery. This is what happens when living off your neighbor’s nickel is facilitated by politicians.

On the local level our three percent budget increase is 30 percent too high. A two percent increase still provides more money, would not cut jobs, and is more responsible. Vote your wallet, vote No April 27.

Daniel Kormanik

85 Great Ring Road, Sandy Hook                                  April 19, 2010