The sequester has struck but it’s too early to know if it will be as consequential as the doomsayers predict. This is the bargain that both parties struck when they couldn’t agree on spending cuts to go along with increasing the debt ceiling. It was a poison pill that the House and Senate agreed to and which the President signed into law. What is curious about all this is how the Obama-haters are blaming him for coming up with the idea. Maybe he did, maybe he didn’t. Does it really matter considering the bipartisan support in both Houses? What matters is if the sequester will ultimately impact public safety and government services that we all rightfully depend on.
Senator Johnny Isakson submitted to an interview on NPR Thursday evening. Unlike a recent MDJ editorial and MDJ guest columnist, Isakson engaged in a reasoned discussion about the problem and did not substitute reason with mindless Obama bashing. Isakson took the high road in stating that if we are in this situation again, there won’t be a meat axe approach. Instead each governmental department and agency will be directed to cut a certain percentage from their budget thereby allowing agency heads to make intelligent and informed decisions about where the cuts should be. There is no getting around the fact that despite a roaring stock market of late and a slow increase of home sales, our country is still in a difficult financial situation. We are still paying for two unfunded wars and Medicare Part D, both of which substantially added to the deficits, and with unemployment still high there remains a lack of needed revenue. Unfortunately, so many of the jobs being created today are not those that will bring in the taxes that occurred prerecession.
The American middle class continues to shrink, their wages are stagnant, and some things that can be done aren’t. The current tax code needs to go. When you have vacant shopping centers right here in Cobb County because landlords demand more rent despite businesses revenues being off, you have to ask why. Does the tax code incentivize investors of these shopping centers to walk away with some tax advantages to the detriment of the small businesses and communities? If so, something is very wrong with that. Empty shopping centers are not good for anyone except criminals, and of course, the property value also goes down which in turn decreases the local tax collections needed for schools, police, fire and other public services. But despite an overwhelming number of Americans who demand a new tax code, it won’t happen until there is campaign finance reform. When special interests no longer are special because they can’t influence our elected officials with money to keep their tax breaks, we just might see a ray of hope for change.