As the election cycle heats up, you are going to hear more and more about taxing the rich, cutting spending, etc.  Let’s cut to the chase shall we?

The President wants a “Buffett” tax on the rich.  This will generate approximately 47 billion dollars over 10 years.  If nothing changes we will generate additional deficits of over 10 trillion during that same period.  Not much of a solution huh?

The House of Representatives just passed a budget that reduced the deficit but still left us 800 billion in the hole.   Still not very good huh?

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Here is the answer that it going to shock you:  They can balance the budget (over time) without raising taxes or cutting a single thing.  How can that be right?  Hopefully, you recognize that the government increases spending each and every year.  Stop it.  Even better is that they don’t have to stop it all, just make a significant reduction in the amount of increased spending and the problem will solve itself.

So go ahead and pass the Buffett tax if you like and close the loopholes.  Go ahead and cut wasteful spending where you can.  The most important thing to remember is that the key to it all is for the government to simply stop growing.