It annoys me that Republicans argue against elimination of special tax benefits for anyone, calling it a tax increase.? Let’s get things straight here: tax increases are things that affect everyone.
The tax code needs to be cleaned up, as do subsidies.? It is not the proper place of government to be handing out special favors.? If the Republicans want to do what is right they need to trade — eliminate a subsidy/tax break that some of their constituents like in exchange for eliminating a subsidy/tax break that the Democrats like.? Rinse, lather, repeat, until we are back to something like the Tax Reform Act of 1986, or better.
Much as I am a libertarian, I would like the government to survive after shrinking considerably.? Part of that involves paying debts, unless we are thinking of doing an external default.? My but the rest of the world, particularly China, would be hurt by that.
Cutting taxes has a limit, unless one wants to see our entitlement programs end.? I’m all for that, but I think it is political suicide, because a large portion of the American public believes in magic — they think that they are entitled to a meager pension and healthcare in their old age, whether the government can afford it or not.
Look, I am for cutting the Defense budget bigtime, because it is offense, not defense; we do not need so much to defend us.? Fold Homeland Security into Defense.? Also cut Social Security and Medicare — we can’t afford them at the level indicated, but not promised… remember that these programs are statutory and not guaranteed.
After that, go after the discretionary budget, and eliminate whole departments.? Why do we need an energy department when prices are beyond control?? Why do we need an agriculture department when food prices are high, and likely to remain so?
Education department?? Things have gotten worse since its creation — eliminate it.? HUD, HHS — great big wastes, eliminate them.? Commerce, Treasury, Labor, State, Interior, Transportation, Veterans Affairs — cut them in half, and see how they adapt.? Make the Fed shrink by 90% or more… what does it take to do monetary policy?
I have no doubt that this policy would make my house price fall, but it is the right thing to do.
The deficit can be cut.? It is all a question of will.
Yes, maybe latest report shows we are good will hunting by transitioning to more private jobs.
Shrinking military has some unintended consequences, how do you replace those jobs when their is no tangible skill in the private sector? Tax code reform would eliminate a lot of accountants.
Policy makers must view the system as an organized complexity including the lobbyist influence.
“how do you replace those jobs when their is no tangible skill in the private sector”
If you think veterans don’t learn life skills in the armed forces, you are naive. I have never met a single person who left the armed forces without picking up great leadership, teamwork, and communication skills.
I went to college with several veterans and they were light years ahead of other students in my business and engineering classes and I feel comfortable crediting the military with their development.
The services don’t just turn people into killers. Certainly, I would fear more for the people who have to compete with vets for jobs when they come home.
When we go to war pay for a good part of it with an intimidate tax increase. If it isn’t worth paying for it isn’t worth the blood. Congress should represent their people and the war and tax increase would get approved or not at the next election. Put some fear in to congress to get it correct.
While I would agree with your prescriptions “in the long term”, are we really going to be so naive as to think Congress will shrink the bureaucracy if we let them increase our taxes first?
The losers will see the extra revenue, and then claim the govt cuts are no longer needed. We have been through this con job before.
Cut the government first. Implement honest spending controls so they don’t just re-hire everyone the next day. Make the public servants work a full career before they get the pension they promised themselves (and that we the public don’t get EVER).
See what sort of tax increases are needed AFTER
David, this is not really helpful. Blanket statements like “eliminate the Energy Department” ignore the legitimate functions that the department does, like oversee the administration of all nuclear weapons. That function may be better served in the defense department, but it still has to be done.
A reasonable, responsible budget proposal could, I believe, reduce spending to 20% of GDP. But then Medicaid and Medicare *have* to be restructured so they don’t crowd out all other Federal spending. At the same time, tax reform could, perhaps, increase tax revenues to 19% of GDP. A 1% structural deficit is consistent with a young, growing population, as we are, according to Robert Prescott. And it reduces the debt/GDP ratio over time, if the economy grows at 2-3% in real terms.
I’m a firm believer in Stein’s Law: if something cannot continue it won’t. But budget battles reflect political rifts in our own society. Analysis and compromise are the only way to get things done. But it’s not as simple as “cut this, merge that.” You should know better.