Okay, the Super Committee has fallen flat on its face. So now, let's put our fine TTR folks in charge. After all we can't do any worse than the jokes that occupy Congress and the White House. So, here is the $64 trillion (or quadzillion) question....what would you do to eliminate the deficit? End Social Security? How 'bout Medicare? Maybe dissolve the military? Tax everyone who makes over $100,000 at 70%? What's your cure?
I would eliminate all income tax and replace it with the "Fair Tax" or "Consumption Tax by another name. Everyone makes purchases, even the illegals that are here working under the table. It has been proven to increase revenue without costing the individual that is currently paying taxes more. Of course those that are decking the system will have to pay their share. I would freeze all government spending and implement a 10% across the board reduction of all Government budgets. I would allow all corporations that have their money overseas to bring that money back to our soil tax free so they can invest it here. I would require mandatory drug tests for anyone receiving public assistance. I would also require all women receiving public assistance to have a birth control implant until they can prove that they can provide for themselves. Unemployment would be limited to 6 months. Their are jobs available if people would thinking that these jobs are below them. I would also put prisoners to work. They got themselves there, it should be part of the penalty instead of the free ride. That would be what I would do day one if I could wave a magic wand...
I would take away all benefits from Congress. No free health care, no insider trading on stocks based on inside knowledge they have. I would limit their terms to one term and not more then 2 seperate terms in their lifetime. No member of congress will be able to serve consecutive terms. President is limited to 2 consecutive terms. No person in congress would be allowed to serve in any public office more then twice in their lifetime. Members of Congress will be required to work outside of any lobbying organization after they serve their term. If they work in any lobbying organization and try to use their influence in Congress in any way they would be penalized minimum $500,000 and 10 years of prison. Not early parole. And these would be felony charges so they will never be allowed to vote again for anyone. I would set the consumption tax at 10%. Government cuts should be 25% not 10%. Corporations who have money overseas would be required to bring them back or pay a 50% income tax on all GROSS worldwide sales with NO deductions for any corporate expenses. Also I would make it mandatory if the corp is in the USA they employees such as call centers be in the USA and all products they make at least 70% must be made in the USA or pay 50% of income tax on GROSS worldwide sales. Public assistance should be available for 3 months maximum. If you do not find a job you will get no money from the government. Unemployment should be limited to 90 days maximum. Prisoners would have to work and have no TV, computers, radios or any other goodies they have not in the prisons. Its a place to serve the sentence for a crime not a country club. Prisoners have to work 60 hours per week minimum. All this is drastic but it would change the way things are run.
Having limited knowledge of US policy's, but being next to the US and being heavily influenced in many things US, I'll try an approach. I also may have the benefit of not having any emotions invested. Let's start with a progressive income tax system. Up to the first 12K of income is tax exemept, the portion from 12K to 35K is taxed at 25%, 35K to 80K is taxed at 35%, and the portion above 80K is taxed at 40%. Remeber, these increased taxes are only the portion above each threshold, so the person making 13K still brings home more than the person at 12K, and the person at 36K still brings home more than the person at 35K, etc. Next, we reduce the number of tax deductions, and you can only reduce your level of taxable income down to a nominal value, let's say 20K just for discussion purposes. So we make charities, 401K's, some eduction costs (tuition, books) a tax deduction, not a write off, but an income reduction, so if you make 35K and donate 1K, to a charity, then your taxable income becomes 34K. We get rid of things such as your primary residence being a tax write off, secondary residences are never a write off. We reduce the lifetime capital gains exemption down to about 100K. A consumption tax, every purchase costs an additional "X", let's say 8%. No more government grants in the form of "you build your plant in my county and you don't have to pay state taxes for 10 years. Now we look into the business of government, what is there original mandate. They are here for the infrastructure, sewars, lights, highways, etc. we keep them in the business of their mandate, they are not entitled to making charitable contributions, we make them more accountable for the money they spend, no more 5K toliets in certain areas, governmemt travel does not entitle you to the best hotels, economy class is good enough for me, it is good enough for you unless you want to pay for upgrades out of pocket. We rethink major spending, does the military need to be as big as it is, we want to protect our borders, but is it necessary to protect everyone's borders, we got bin laden, we got hussein, do we still need to be in those countries. We offer tighter, more stringent oversight committees, we re-regulate certain industries (banking for example). I understand you currently have over 1000 health insurance agencies in the US, if I go in for a procedure, does my insurance provider cover that procedure...If that figure is accurate, there is a lot of duplication, a lot of wasted hosptial administration, and a lot of duplicate high end salaries to the CEO's of the insurance companies. How about reducing (if not eliminating), this insurance boondoggle to about 5 companies. Insurance settlements. A Dr's malpractice insurance is through the roof because the settlements are so exorborant. Make the lawyers work off a salary structure, no more fee for settlement, you get 10 million, my firm gets 40% of that. Prison reform, as I understand it, looking at the G20 economies, the prison population in the US equals the prison population of the other 19 economies combined. Is there that many bad people in the US, or do we need to re-examine the incarceration rules, I don't have the answer there, but I honestly do not believe that there is a disproportionate amount of bad people in the US. Gun control...Thought I would throw that in for $hits and giggles Just a few ideas from a different perspective...
You all do know that any consumption tax would cause those that are currently not paying any income tax to be now taxed. And those receiving tax refunds larger than the tax they paid in to now be doubly taxed. So that will never fly because it would be seen as a tax that is more unfair on the poor. Jamie
How about you move the White House, Congress and the Senate to Guam. Make it a full fledge state or the new D.C. As soon as they are all settled in the rest of the country can join Canada and stick Guam with the debt.
Brewster I really like your suggestion the best, but if only it could be done. We could probably get Greece and Italy to guarantee the debt also. Oh well, we can dream. BTW, Brewster, this is similar to another proposal out there. When it was disclosed that 5% of the US population incur 50% of all health care costs, someone suggested that we deport that 5% to Canada. Luckily for you, we didn't do that! From my perspective I would never want a consumption or national sales tax. I know the hue and cry of "You're taxing the poor!" would be out there, but my reasoning isn't that at all. As those of us who live in states that have sales tax have seen, that tax is a really easy way for the politicians to raise taxes in a very subtle way. Our local sales tax started at 2% and now we're just under 9%. Generally we find that sales taxes just become a license to steal by the government. The first thing I would hit would be the entitlements. Social Security would become more needs based. If you are on Social Security and still making a good dollar then you shouldn't be drawing. I'd start a phase out of Social Security at $100,000 and there would be no Social Security paid out if you are over $200,000. I would gradually raise the "early" retirement age from 62 to 65 and full retirement from 66 to 70. Medicare would also feel the axe and the so called supplemental insurances would see their government subsidy drop dramatically. I would also raise the cap on Social Security taxable earnings from the $110,000 (in 2012) to closer to $120,000. I would subject rental income profits to Social Securtiy taxes also. For income taxes I'd hit both ends. I'd raise the rates on regular income for the top brackets by 2% and make capital gains subject to a 20% tax instead of 15% if you make over $200,000. I'd also cut the earned income tax credit as well as the child credit. The cuts wouldn't be huge, but a drop of $50 in the child credit is long overdue and the same for the earned income credit. Welfare would be changed dramatically. Food stamps would allow you to buy fruits and vegetables and selected meats. Food stamps or any public assistance could not be used in any fast food restaurant. Yep, a lot of ghetto Mickey D's would be gone. Also if you are on any form of public assistance such as welfare or unemployment you would have to be subjected to drug testing on a regular basis. Test positive and your assistance will be gone. If you are on public assistance and you use an ambulance for a taxi, your assistance will be hit for the cost of that ambulance. On the military I would reduce the overseas forces in a lot of the non-essential bases. Biggest targets would be Germany, England, and Japan. It may be cool to get assigned to those places but we can't afford it anymore. On hardware purchases, there would have to be a justification for the need for the particular weapon. The justification has to be better than we really need this new toy. So that's just the start. Let's see, so far I've ticked off the seniors, the poor, the rich, and the military. Looks like a bi-partisan compromise to me!
A lot of good ideas there. Along the Welfare line of thought. I once heard someone suggest that the government should go out for annual bids on their welfare food and clothing expeditures. So for instance, Target, Walmart, etc. all bid on all the clothing business allotted to people on social assistance. The government ends up paying 85-90 cents on the dollar. Charges are placed on government issued debit cards restricted to a specific dollar amount. You could even restrict the type of purchases (ie. regular not "designer" jeans, etc.) although that could be a bureacratic nightmare. Same system applies to food purchases. Cards not valid at Micky'D's...lol. It would reduce the discrectionary spending considerably. I really agree with withdrawing troops from all but essential bases. Keep in mind that any reduction in military spending with impact a substantial arms industry. You have to balance spending reductions with the impact on local economies all the while responding to the urgent need to cut spending, ASAP. Tough job!
Frankly I think the solution doesn't have to be as drastic as most people think it needs to be. 1.) Cut funding to all departments except for health care and social security by 1.5% per year for at least 4 years. These numbers do not go up because of inflation. And yes this includes the military. 2.) Additional cuts for the military, reduce the size of the standing army by 10% over 5 years. The US spends more on it's military than the rest of the world. a 10% cut while significant still leaves you with the largest military on the planet by far. 3.) end the Bush tax cuts, they were meant to be temporary in the first place. Phase that tax rate back in over the next two fiscal years (not starting until the next tax year). 4.) Sign a bill which locks in spending and tax levels for a period of 4 years (within say... 1% of departmental budgets) except in case of war/national emergency which must be ratified by 2/3 of each house and the president. 5.) Congrats if you are in congress or the senate. Effective immediately if you have served more than 12 years you are no longer eligible to seek that office. That should get some stale blood out of there. 6.) Failure to enact any of the above will result in firing the existing congress, senate and sitting president directly into the sun. Oh and lobbyists will be shot on site.
