LETTER: We have a financial crisis
To the Editor:
The Obama administration stated recently that, unless Congress raises the debt ceiling, tax refunds might be delayed.
It is estimated that the government will owe about $86 billion in IRS refunds, and there is not enough revenue to cover it. I guess the government assumed that every cent people paid in withholding taxes was theirs, and they spent it. In all the years that federal income taxes have been paid, you would think someone in Washington would realize that many people overpay their taxes and expect a refund.
Now the Obama administration is saying that, unless Congress raises the debt ceiling, Social Security and veterans benefits might be delayed. It is noteworthy that nothing has been said about delaying salaries for the President, Congress or government employees. Why is it always the ones most in need who are threatened?
Anyway, we have a financial crisis, and the Obama administration is saying that the only way out is to borrow money to pay the debts.
Here is a simplified way of looking at that scenario.
In December, Joe Public takes his credit cards and buys wonderful and expensive Christmas gifts for friends and family.
In January, the credit card bills arrive, and Joe Public doesn’t have the money to pay them. So he pays his Visa bill with his MasterCard; he pays his MasterCard with his American Express card. Then he goes to the bank and borrows money to pay off his American Express card. Now he has paid off all his credit cards and is out of debt.
If you believe that, then you belong in the United States Congress.
J. Fred Watson