Oil companies' billions, or teachers? That’s our only choice, right?
President Obama makes the rhetorical statement/question, “Do you want to defend millionaires, billionaires and oil companies or do you want to employee teachers?”
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Is that really the choice? If we tax these bad guys how long can we keep these teachers?
This jobs plan is a re-election plan, nothing more. Teachers and police will be kept on by states who can’t afford them, through the next election. Construction workers will be hired for temporary projects, through the next election. Unemployed will continue to receive benefits, through the next election. That is very convenient, but is in no way a real plan that stimulates long- term economic growth.
What happens when this money runs out, like the original stimulus? I am for infrastructure spending done the right way -- and my sister is a teacher and I am certainly for them, as is everyone.
“Free pizza and the rich kids are paying for it” is a wonderful junior-high theme while running for student council, but the biggest economy in the world needs a little better plan.
If you want to tax the “rich” and the oil companies, go ahead -- you get about $50 billion a year in revenue. Wasn’t this supposed to pay off the national debt? Remember the rhetoric that what caused this whole debt mess was the tax cuts on the rich? About how now we will get out of this mess if the tax increase on the wealthy has to go for the next decade to pay off this jobs plan new debt that is being created?
I would argue that what caused our debt was a lack of fiscal responsibility by our leaders for the last 10 years.
Best thing for our country and for our states is to not just give them a short-term fix, where they won’t have to balance their own budget, but to create demand. Creating demand means teachers and police can keep their jobs after this next election. That is a plan I would back and endorse.
If we continue the budget mess we are in and add $477 billion to current spending we will be getting close to $2 trillion in annual deficit. A $50 billion increase on the rich won’t bring in enough revenue (at 3% rates, half of long term average) to pay off the interest on the new debt that is being created.
So, is it really oil companies or teachers? Should we spend the next decade paying off this re- election bill? I don't think so.
We need tax reform, we need an energy plan and we need a real budget solution. We need infrastructure that creates demand.
An infrastructure bank makes sense, but it will take a few years to get up and running. Not enough time for America’s short election cycle to have any backers.
So, we are left with a re-election bill, a divided Congress, and another potential debt ceiling fight before the next election.
John Layfield, formerly known as JBL, was the longest reigning WWE Champion in Smackdown television history, retiring after 17 years of pro wrestling. John, a former collegiate All-American and pro football player, is a lifelong entrepreneur who has worked as an investment banker, is series 7 and 24 qualified, and is currently an active private investor. His Internet radio show can be heard at www.JohnLayfieldShow.com.