Tuesday, December 7, 2010

Put Uncle Sam on an Allowance

Put Uncle Sam on an Allowance

There are a lot of ideas out there about how to control government spending and I like this one because it punishes the career criminals in Washington. Sadly, we are just going to dance around actual action until the plane hits the ground. I truly believe that if Congress is running a deficit then they should have their pay cut at least 50% until they balance the budget. Plus we should have a maximum federal spending limit of 15% of the GDP, which would allow for spending and paying off the national debt. If they want to pay off the debt sooner then implement a 2% federal sales taxes solely for national debt reduction that sunsets with the national debt. You tie these three things up in a neat little bow and you have a resolution of our issues. I like the independent auditor, chosen at random to audit the federal budget. That will never happen because the feds could not stand the light of day on all the corruption and waste, so the auditors would be bribed in someway or forced to look the other way or else.

Here is my proposal in a nut shell:

1. Balanced Budget Amendment
2. Federal Spending Not to Exceed 15% of GDP
3. Fail to Balance Budget 50% Pay Cut for Congress
4. 2% Federal Sales Tax for National Debt Reduction
5. Audit the All Federal Books (Light of Day Clause)

This would allow Congress to make decisions on what is important and would require 40% slashing of current spending, which is significant but necessary. Cut federal spending 4% of GDP a year for a decade and you are there. Plus, by addressing the debt then the interest payments go down and there is more money for other things as long as you stay within the 15% cap. The first year will the the toughest and the easiest as to balance the budget Congress would need to cut at least 6% of GDP, but there is a huge amount of waste that is available for immediate cutting without touching the entitlement programs. This just takes the stones to do what needs to be done and is in all likelihood political suicide considering the government dependency that has been built over the years. This is just a simple solution to a major problem facing this country and it isn't going to go away by ignoring it.

No comments:

Post a Comment