The fiscal cliff

The payroll tax is an implicit forced savings for most Americans. The purpose of these taxes is to give Americans minimum pensions and medical care in retirement. By cutting the tax we are cutting savings, which make future retirees’ benefits less certain. The government has essentially encouraged Americans to consume more for the present rather than saving for their future well-being.

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The Bush tax cuts should be extended indefinitely for all income groups. Eliminating the Bush tax cuts has the negative impact of shifting from the private sector to the public sector. The private sector is almost always more efficient at spending the people's money than the public sector. To make the government more fiscally responsible with taxpayers’ money, the Congress must embark on a serious program to reduce government spending and reform entitlement spending. Future Social Security insolvency can be solved by increasing the number of years people work. Medicare insolvency can be resolved by limiting the amount of money spent in the last six months of life. All Americans are aware of the excess and unnecessary spending by our federal government, such as GSA trips to Las Vegas.

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