U.S. Should Learn From Canada's Experience In Cutting Spending

[Shady]

This is the type of deficit reduction deal that SHOULD be pursued by the president. Unfortunately, he's practically dragged kicking and screaming to the table, to offer something that barely does anything close to what our federal government achieved during the 1990s, when our debt and deficit approached the same levels.

A roughly 6 to 1 ratio of spending cuts to tax increases. Republicans can't even get Obama to agree to 3 to 1. Right now he's pushing for a 2 to 1 deal. It's clear he's not serious about the problem at all. He's just trimming around the edges, kicking the can down the road to the next president sworn into office in 2016, when his tab comes due.

Other points of Canada's real deficit reduction plan:

Agriculture cut 22%

Fisheries cut 27%

Natural Resources cut almost 50%

EI cut 18%

[Smallc]

This is the type of deficit reduction deal that SHOULD be pursued by the president.

If that was done now, it would make the fiscal cliff look like a pot hole.

[punked]

Canada could only take those types of cuts because how how well America was doing. Who is America's America? Good for Canada but if the US did that you are looking at a worldwide depression. Lets forget Fox News is just pretending the GST never happened. You think America would go for a VAT Shady is that what you are proposing? I agree that would kill their deficit to bad you side would never agree.

Edited November 16, 2012 by punked

[blueblood]

Canada could only take those types of cuts because how how well America was doing. Who is America's America? Good for Canada but if the US did that you are looking at a worldwide depression. Lets forget Fox News is just pretending the GST never happened. You think America would go for a VAT Shady is that what you are proposing? I agree that would kill their deficit to bad you side would never agree.

I would prefer a vat. It's fair, everyone pays into it when they consume, and the rich people who you guys despise end up paying more because they are able to consume more.

Close some loopholes, cut more spending and over time that should do it.

I can see Obama enacting a vat in his last two years as a parting gift.

[dre]

This is the type of deficit reduction deal that SHOULD be pursued by the president. Unfortunately, he's practically dragged kicking and screaming to the table, to offer something that barely does anything close to what our federal government achieved during the 1990s, when our debt and deficit approached the same levels.

A roughly 6 to 1 ratio of spending cuts to tax increases. Republicans can't even get Obama to agree to 3 to 1. Right now he's pushing for a 2 to 1 deal. It's clear he's not serious about the problem at all. He's just trimming around the edges, kicking the can down the road to the next president sworn into office in 2016, when his tab comes due.

Other points of Canada's real deficit reduction plan:

Agriculture cut 22%

Fisheries cut 27%

Natural Resources cut almost 50%

EI cut 18%

Again you are assuming that employment and growth is dependant on government policy, it isnt. Theres a whole host of factors that make the Canadian economy different than the US economy or any other economy.

The problem is that people like you expect the government to solve all your problems for you. You need to get up off your ass and do something yourself. Start a business, hire some employees. Do something usefull besides logging on here and whining.

[dre]

I would prefer a vat. It's fair, everyone pays into it when they consume, and the rich people who you guys despise end up paying more because they are able to consume more.

Close some loopholes, cut more spending and over time that should do it.

I can see Obama enacting a vat in his last two years as a parting gift.

But in an economy thats 60% dependant on consumption, why would you tax consumption? It makes way more sense to tax income and capital gains. I would try to ENCOURAGE consumption no discourage it.

Edited November 16, 2012 by dre

[Smallc]

If that was done now, it would make the fiscal cliff look like a pot hole.

Shady?

[Topaz]

Obama always seems to be for the middle class and the poor and I suppose no matter who is the President, the US have to have giant steps to get control over their debt. Having said that the following article tells how Obama is going to attack the problem but when he decided this, there wasn't a chance of war in the Middle-East , so I don't know if that will change plans in this article. http://www.globalresearch.ca/leaked-grand-bargain-document-details-obamas-plan-for-cuts-in-entitlement-programs/5311917

[dre]

And by the way...

While the liberals DO deserve a little bit of credit for balancing budgets in the 1990's you have to realize that this was a period of unprecidented economic growth... The .COM era... the biggest economic boom in recent history. Even the US was able to run close to balanced budgets during this time.

[Smallc]

That's true, but the Liberals did cut significantly, and that fact can't be overlooked.

[dre]

Yeah I agree. And they COULD have spent those suprluses on a lavish ideological agenda. Im just saying that they were also in the right place at the right time.

[Smallc]

Yeah I agree. And they COULD have spent those suprluses on a lavish ideological agenda. Im just saying that they were also in the right place at the right time.

Most certainly. The PC GST also helped immensely.

[dre]

Most certainly. The PC GST also helped immensely.

Agreed. Although Im still not a big fan of consumption taxes... They are regressive, and by partially replacing income and corporate taxes with consumption taxes Canada is now concentrating wealth at a rather alarming rate. If this goes on for too long, we will start to see political instability.