Looks like we are going to get a small, small glimpse of some organized protests here in the U.S. later this week. According to sources, a group calling itself "USUncut" is planning gatherings in dozens of cities across the country on February 26th to show their displeasure toward government cuts that affect the poor and middle class.
What we are witnessing is both sad and frustrating. The people these organizations are directing their anger toward are indeed deserving of that anger, however the reason for the anger is misguided. Yes, the government is the source of the vast majority of the pain we are feeling as a nation. However, the reason for the pain is the very thing USUncut if fighting to keep. It is excessive entitlement programs and and explosion of government spending that helped put us in such a sad situation. It is government spending off all types! Republicans and Democrats are all to blame! Hard line conservatives that support military spending and huge tax cuts are just as guilty as bleeding-heart liberals that support higher taxes, unemployment insurance, environmental subsidies and welfare programs.
All of this misguided energy and passion is so very frustrating to watch. It will become even harder to take when the protests are widespread and violent after serious cuts are proposed for programs that hit the poor very hard.
The fact is that all Americans are going to be affected by these cuts, and the truth is that these cuts are all necessary! Cuts need to be made deep and across the board. What the Republicans are proposing does not even begin to scratch the surface of true spending reform. As we have mentioned before, if we do not get control of our spending ourselves, the rest of the world will force our hand. Either way the day is coming when we will have to make real sacrifices, there is no avoiding that reality.
Below is some information from the USUncut website. They are suggesting that closing the tax loopholes of huge corporations will provide enough tax revenue to avoid cutting social programs and government jobs. What they do not realize is that closing those loopholes will result in the loss of thousands of non-government jobs from the private sector. It is the old and tired idea that corporations are hording money and living large at the expense of everyone else. If that is the case, and this is what you believe, then you are free to go out and buy stock in those "greedy" corporations so you can profit from all those tax loopholes just like they do!
Excerpt from USUncut:US Uncut is about taking action against unnecessary and unfair cuts to public services across the US. Washington’s proposed budget for the coming year sends a clear message: The wrath of budget cuts will fall upon the shoulders of hard-working Americans.
Obama seeks to trim $1.1 trillion from the budget in the next ten years by cutting or eliminating over 200 federal programs, many dedicated to social services and education.
For instance, it cuts in half funding to subsidize heating for low-income Americans; limits an expansion of the Pell grant program for students; and decreases Environmental Protection Agency funding by over 12%.
Meanwhile, Republicans are using their new House majority to slash spending even more brutally. The GOP has made it clear that they are bent on raiding funds for Social Security, Medicare, education; determined to kill health care reform; and gut needed investments in infrastructure, climate change and job creation, at a time when America needs it most.
These cuts will come on top of very painful austerity measures made at the state-level across our nation–-worth hundreds of billions--since the recession began.
In short, budget cuts demonstrate that Washington has abandoned ordinary Americans.
But there is an alternative: Make corporate tax avoiders pay.
Enjoying record profits and taxpayer-funded bailouts as the economy slowly recovers from a financial crisis, nearly two-thirds of US corporations don't pay any income taxes, instead opting to abuse tax loopholes and offshore tax havens. According to this study from the non-partisan Government Accountability Office, 83 of the top 100 publicly traded corporations that operate in the US exploit corporate tax havens. Since 2009, America’s most profitable companies such as ExxonMobil, General Electric, Bank of America and Citigroup all paid a grand total of $0 in federal income taxes to Uncle Sam. Tax havens alone account for up to $1 trillion in tax revenue lost every decade, money that could be invested in K-12 education, colleges, public health, job creation and hundreds of other worthy public programs.
If we pay our taxes, why don’t they? If corporations profit here, shouldn't they pay here?
This group is of interest to us for a few reasons, even though we completely disagree with their premise and message. First, we want to bring to light these types of "American Uprisings" to help people understand that this is only the very tip of the iceberg. Huge austerity cuts are coming to the United States in the not-so-distant future, that is certain. Once those cuts become reality and politicians begin presenting their solutions, you can bet the protests will be 100x larger than what we saw from U.S. Uncut this weekend. Second, we want to help explain why these groups are misguided when it comes to their message (see our post American Uprising - The Preview) and help people understand the true nature of our economic problems and solutions. Third, Americans need to understand the seriousness of what is coming our way and find ways to protect their investments and financial health in the face of these risks.
