Monday, June 13, 2011
Time Congress Get Serious About Deficit Reduction: It is time to get serious about Deficit Reduction
Click the link of the blog to watch a video with House Minority Leader Nancy Pelosi speaking about Deficit Reduction
Part 4 of the FRSFreeState plan to put americans back to work
It is time for Congress and the White House to get serious about Deficit and Debt Reduction but that means coming up with a plan to actually accomplish this. As much as President Obama gives speeches about talking about the need for Deficit Reduction, thats all they are, thats all he has. He's the President of the United States and he doesn't have a plan. Or at least he's not ready to release one yet for fear it might be criticized or offend some people. You ask him what do you think about this or that, he says I would be open to this or that. But when it comes to putting a plan on the table, he's not ready to do that yet. Barack Obama has been President of the United States for two in a half years now and has speaking about the need for Deficit Reduction for three years now. And has yet to introduce a serious plan to accomplish that. At least the House GOP has a plan when it comes to Deficit Reduction and has put something on the table. The problem with the GOP plan is that it doesn't do a thing to accomplish what it intends to. But thats the only problem with it, it attempts to get our deficit and debt under control. By focusing on 13% of the Federal Budget when the real money is in defense, entitlements and the Bush Tax Cuts for High Earners. As well as Corporate Welfare. What we need instead is a real Deficit Reduction plan that focus's on Budget Cuts, Government Reform to make the Federal Government more Cost Effective and efficient. And Tax Reform.
The fact is America spends too much and doesn't pay for enough. And what the Federal Government should be doing, we don't pay for and borrow way too much money. For example defense and no I'm not going to make this entire blog about cutting the Defense Budget and Tax Increases, sorry if that disappoints anyone. But we are currently responsible for defending Developed Nations oversees that have the Financial Resources to defend themselves. Like in Europe, but also Saudi Arabia, Japan and Korea, so what we should do instead. Is tell these nations that we are going to stop doing this and demand that they play a bigger role in defending themselves. And reform NATO in a way that would allow Europe to accomplish just that. Why we work with Canada, Mexico, Central America and the Caribbean, while still being partners with Europe. But close our bases there as well as in Saudi Arabia, Japan and Korea while still working with our ally's. This would save up in the hundreds of billions of dollars every year. And use the money from bringing the troops home from Afghanistan and Iraq to pay down the deficit and debt as well. And force the Federal Government to pay for all of our Military Operations like when we invade and occupy a country or are in a No Fly Zone. Lets stop borrowing money for our Military Operations. The Wars in Afghanistan and Iraq represent 3T$ of borrowed money.
One way to cut the Budget Deficit and Debt is to make the Federal Government more efficient and Cost Effective. You don't always have to cut to save money, sometimes you can just reform things and make them work better. Entitlements is a pretty good place to start, one thing we should cut when it comes to entitlements. Is the benefits that High Earners receive from them. If your making 500K$ a year or more or your a millionaire. You don't need a 20K$ a year from Social Security from the Full Retirement Account or from Early Retirement. And if your making that kind of money, you can certainly afford to pay more then 6.2% Payroll Tax. Lets design Social Security and Medicare for the peple actually need them and have the people who can afford to. Pay more into it and take Social Security, Medicare and Medicaid off of the Federal Budget. And make them independent and Self Sufficient, which represents around 2T$ annually. When it comes to our Social Insurance programs like Welfare and Unemployment Insurance as well as Public Housing and Food Stamps thats called something else now. I can never remember the name of the new Food Stamps program but anyway lets design those programs. So they empower people to get off of them by letting them get the skills that they need to get a better job or a good job. So they can finally become Self Sufficient. So they aren't collecting from these services but paying into them. Which would also help reduce our Poverty Rate. Then reform our Disaster Relief and stop borrowing money every time we have a disaster. By setting up a Disaster Insurance program, that people would pay into base on the Financial Worth of their property and how prone to disasters their property is. Also fully fund FEMA or the Federal Emergency Management Agency and make them Self Sufficient and Self Financed with something like a Property Tax. Again based on what property's are worth and how prone to disasters they are.
Repeal the Bush Tax Cuts for High Earners back to the Clinton Tax Rates, if anything move them up to around 40-45% and use that extra Tax Revenue from 35-36%. Whatever they are right now to pay down the deficit and debt. Rep. Jane Shakowski Democrat from Illinois, who I like and respect, who's on the Ways and Means Committee. But who I agree with about as often as there's a blizzard in Saudi Arabia, has a good plan in the House to accomplish this. Then reform the overall Tax Code by taxing more but at Lower Rates, by eliminating most if not all Tax Loopholes. Especially Corporate Welfare for things like Big Oil and Gas but also eliminating Agriculture Welfare and have farmers pay insurance to receive Agriculture Subsidy's.
We'll never has a strong economy again long term until we get our deficit and debt under control. We don't need to balance the budget right away but we need to start bringing down our deficit and debt. Otherwise most of the money that the Federal Government will be spending will to pay the interest of the deficit and debt and will be paying other nations to finance our deficit and debt our creditors. As well as the Federal Government competing with the Private Sector for lending. And we need a comprehensive approach, that has Budget Cuts, Government Reform and Tax Reform to get this done.