As this is being written, members of the US Congress have, once again, proven that they are totally clueless. It seems that they can't agree on any long-term method for reducing the budget deficit of the US Treasury. As is the case with all treasuries, managers balance their ability to raise cash with their need to fund liabilities. For corporations, that means, that revenue, e.g., sales, must be of a sufficient amount to meet payroll and other expenses. If sales revenue falls short, the company can borrow money to meet its obligations. If borrowing still falls short or if the company can not borrow, it can file for bankruptcy and stay in business or close its doors and walk away from its obligations. The US Treasury however, can't have a Columbus Day Sale or use another way of selling goods and services to raise cash. It relies on tax revenue and some fees for income. When, in times of lower tax collection - recessions - the treasury either borrows greater amounts of money, or the congress raises taxes. As we all know, republican members of congress have insisted that raising taxes is out of the question. This misinformed position is based upon the the fact that they have signed a pledge not to raise taxes under any circumstances. Now, since the onset of WW II, which really pulled the US economy out of the depression, the US has, pretty much, conducted a monetarist economist policy. There have been times when an administration has tried other methods but actual fiscal policy has been most effective when it relied on the basic tenets of Keynesianism. The rationale for so doing, friends and neighbors, is pretty simple - it works - especially here in the good ole US of A. Before we get too far, the text of the House of Representatives pledge follows: United States House of Representatives candidates Taxpayer Protection Pledge I, _______________, pledge to the taxpayers of the _____ district of the state of__________, and to the American people that I will: ONE, oppose any and all efforts to increase the marginal income tax rates for individuals and/or businesses; and TWO, oppose any net reduction or elimination of deductions and credits, unless matched dollar for dollar by further reducing tax rates. _________________________________________ Signature _________________________________________ Date _________________________________________ Witness _________________________________________ Witness Pledges must be signed, dated, witnessed and returned to: AMERICANS FOR TAX REFORM 722 12th Street, WASHINGTON, DC 20005 PHONE (202) 785-0266 FAX (202) 330-5224 Now, I'm not an expert on the US Constitution. But simple logic tells me, that if one is bound by a sacred oath to uphold the Constitution of the United States, then, one is precluded from PLEDGING loyalty to some other institution. This is a PLEDGE! The "to the taxpayers" bit provides cover, but congress people have pledged their loyalty to a third party. We all know, that as soon as one of them tries to act rationally and agrees to eliminate some of the tax shelters or to actually increase tax rates on high earners, Americans For Tax Reform will be all over them screaming that they are un-American! The US can not conduct sound fiscal policy with one hand tied behind its back. It MUST have the ability to raise taxes during difficult economic times. Regardless of how we got into this mess - and a great deal of that has to do with lax congressional oversight - the only way out is to reform the tax code so that the banks and the hedge funds and GE and the other corporations pay their fair share. These people have become extremely wealthy because of the opportunity that has been given them here in the US. It's not fair for them now, to try and hog it all.