By Bill O'Reilly
President Obama's speech Wednesday afternoon is a complicated deal. He says he wants the nation to reduce the federal debt by $4 trillion over 12 years, but that is not nearly enough. Mr. Obama also stated that the debt reduction will be accomplished by spending cuts and so-called tax reform. The words "tax reform" are interesting. I believe that is code for tax the rich.
First, let's look at the sad facts:
Ten years ago, the USA spent about $1.8 trillion a year. Last year, 2010, the feds spent double that.
Medicare payments more than doubled.
Defense spending more than doubled because of two wars.
Entitlements, like Medicaid, food stamps and welfare, went from $232 billion to $558 billion, a whopping increase.
Finally, Public Broadcasting went from $300 million to $420 million, just so you know.
So you can see the intrusion of the nanny state, the feds doling out money to help citizens who cannot or will not help themselves.
President Obama seems to understand the anger of the American people when it comes to unnecessary spending, but he also knows that we are a divided nation.
A new Gallup poll is instructive. When asked if more cuts should be made to domestic spending, 45 percent say yes, 47 percent no, a dead-heat. On the subject of taxing the rich more, 59 percent say yes, 37 percent no. Mr. Obama certainly is taking comfort in that.
But he should not be because a new Reuters poll says 69 percent of Americans now believe the country is on the wrong track. Just 25 percent think we are going in the right direction. Very bad news for the president.
There is no question that government spending is out of control and that the committed left-wing wants and approves of that. Say hello to Howard Dean, who continues to hammer Republicans:
(BEGIN VIDEO CLIP)
HOWARD DEAN, FORMER DNC CHAIRMAN: These guys hate Medicare. They hate the welfare state. They hate Social Security. They hate anything that helps ordinary people. They are in the pay of corporations. That's who paid for their campaigns and, of course, that's whose tune they are going to dance to.
(END VIDEO CLIP)
"Talking Points" believes Governor Dean is dancing to the bankruptcy melody because taxing the rich isn't going to get the country out of the fiscal mess.
Here's what will. First, go back to the spending level of 2008 and cut from there over a period of 10 years.
Second, reform the chaotic tax system. There should be three brackets, with affluent Americans paying about 35 percent and many deductions phased out. Also, the corporate tax should be flat as well, around 20 percent, with most deductions phased out. No more free rides for General Electric and other companies who stash profits overseas.
Third, a small national sales tax should be implemented on everything except food, medicine and medical care. That will instantly raise billions and not hurt the folks too badly because the income tax will come down significantly for most. Also, tax collection will be much more efficient, as the sales tax dollars role in.
And fourth, reform Medicare by allowing private insurance companies access if people choose that. In addition, raise the age of qualification for both Social Security and Medicare for Americans now under the age of 45.
If those items were passed by the pinheads in Washington, our debt would come down fast, world confidence in the American economy and dollar would soar, and the nanny state would be doomed. All good things.
And that's "The Memo."
Pinheads & Patriots
A new film was announced on Tuesday. It is about the thug mobster John Gotti, who died in prison after being convicted of murder. The movie will star John Travolta and Lindsay Lohan, and the question is: Are they pinheads or patriots for taking the roles? Keep in mind that actors have to work. Please vote on BillOReilly.com.
Tuesday night we showed you an out-of-control squirrel in Mesquite, Texas. A police officer believed the squirrel was menacing some school kids, so he pepper-sprayed the critter. Well, 73 percent of you believe the cop is a pinhead; 27 percent say he is a patriot for neutralizing Rocky the squirrel.