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At the federal debt ceiling deadline is August 2 -- -- both sides in Washington -- fiscal discipline to make a debt ceiling deal can they actually do that many of -- -- home -- figured out how to manage our own debt ceiling.
So why can't DC.
Dave Ramsey joins us from Nashville he did -- -- -- on us.
Thanks -- -- -- everywhere do not know you just I heard what we just talked about there's no guarantee from Washington right now that we are not gonna see tax hikes I think it most.
Most people at this point pretty much presume there's going to be.
And I think it's really frustrating for many of us to get our arms around it because we've cut back.
Why haven't that.
Well it's very very frustrating and really what you've got an America run -- to -- is that.
Of Americans paid no federal income tax last year.
So we know where those tax increases are going to occur.
And it's not going to be on that much and -- there's a philosophy that's broken down here in terms of how taxation works and basic economics have.
You know I have been abandoned a long time ago.
If you took Washington right now and and set it up as a household -- household making 55000 dollars a year.
-- spending 96500.
Dollars a year and it's 366000.
Dollars in credit card that.
Those are the ratios now if that family called my radio show the first thing on there's amputate their talk -- solar car.
You know we cut some stuff back really quickly because this is bankruptcy looking for -- place to happen if you looked -- -- -- personal financial scale.
-- you valley said you cannot borrow your way out of debt.
He can't do it in a house so -- can't do it at a federal level and yet that seems to be the possibly keep taking.
Well it is and you know one thing we did tell people is to get there in come -- but then we get into the debate of how revenues generated for the federal government actually go -- Do they go up with higher tax rates and there's a re -- set of that -- out there that indicates that's not so.
And so while we try to get our income up we've got to get our in our out go down and again if you're making 55000 in your spending on a 65.
The first thing that we're going to have to say out loud is there's going to be some pain.
This is a pretty extreme.
Household it's pretty extremely out of three can control.
Thirties through 366000.
Dollars in credit card that can you imagine someone calling -- -- and saying that.
You know we we would be hostile man -- would be all over -- And so they're gonna not go on vacation they're not gonna do anything -- a matter of fact.
There's going to be some of the teenager screaming in the wide for the husband's going to be screaming because their lifestyle gonna get cut -- nothing compared to what it was and that's what's gonna happen.
To do this right in Washington it's gonna hurt.
The problem is though it's you know don't cut my entitlement you can cut viewers any -- you want but don't cut mine so.
You know while we all of donated home we don't wanna share in the pain at the federal level and -- that's some.
It really needs to get their arms around.
You know I think we don't want to share at the federal level because the Washington has done such a bad job of picking and choosing the pain.
And certain things become -- I think most people would -- -- most logical people on there's not a lot of people out there are getting money that aren't logical but.
If you're sitting in looking at this is a thoughtful critical person if you just said if there was a cut across the board.
If every -- body felt the pain percentage was exactly the same all programs are cut X percent to get -- to balance.
Then I think people would go along with that a little bit more.
But it's is picking and choosing where you get a raise my program gets cut -- -- I get ticked off them.
Of course that doesn't fit and that's politics as usual that's the garbage it's been going on.
And they put this off for two generations and now they're gonna have to deal -- do you think we're gonna see tax hikes if I I don't know it depends on what political thought -- ends up ruling today.
Whether it's keynesian economics or whether it's someone that actually believes that -- cutting taxes that revenues do increase because the economy is increased.
And then you get into the old argument of somebody well let's supply side economics and I happen to be a supply -- I believe that that works -- -- art Laffer is a genius.
And the Laffer Curve is real.
But there's plenty of people that want to argue on the other side of that -- whether that'll happen or not and you know there's a good solid argument going on for two decades on that so.
I'm afraid we will.
But we again we have 47% of Americans paying zero.
Taxes to the federal government in federal income tax.
And if you wanna continue to -- me and even tax me more I'm getting increasingly angry with that figure.
Yet and you know it and you know what that's the inequity of -- all that's the unfair part I think that's the part that Americans are the most angry about.
Dave -- down -- national thanks for sharing your thoughts with us -- Good to be with you thank you for having me --
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