Monday, August 8, 2011

The Debt Crisis Solved in 4 Easy Steps

I may not be an expert, but here's what I think makes sense.

1. Close the IRS and impose a flat tax - Save 10B annually

Some say 15%, others say a different amount.... let the experts decide that. But running the IRS costs our government $10,000,000,000 per year (that's 10 billion dollars, Billion... with a "B" ).

Take cash saved and throw it right towards the deficit. The added bonus is that huge businesses and super-wealthy people who aren't paying as much (or anything) into the tax system would then have to pay their fair amount. We might see an increase in tax revenue but a decrease in tax burden on the middle and lower class.

2. Cut salaries for congress (ratify Article I, Section 6 of the Constitution) to reflect the health of our economy. - Save 60M annually

When congress first met in 1789, congressmen made $6 per day. In 1975 congressmen made $44,600 per year. Currently congress makes $174,000 per year, the speaker of the house makes $223,500 and the majority and minority leaders make $193,400 yearly.

There are 535 members of congress including one speaker of the house, one majority leader, one minority leader, and one president pro tempore. By my rough math, that means we pay congress $93,197,700 annually. Since these are the folks who pass legislation

Article I, Section 6 of the constitution allows congress to determine it's own pay. I say that while the country is in debt, to be a congressmen you should make what the average American makes, about $63,091.
That means we'd pay congress $33,753,685 and save $59,444,015 yearly... which we should apply directly to our debt.

3. Cut special health care for congress and make them use what they make us use. - Save 3.8M annually

Congress votes on our healthcare, yet they don't use it... members of congress get to use the Navy Medical Clinic (formerly called the Office of the Attending Clinic). On site are some of the nation's finest medical services and staff.

Members of congress pay a flat annual fee of just $503 for healthcare, yet congress appointed roughly $3.8 million to the Navy for their healthcare.

In 2009 the average American paid $4,824 for their health insurance, and the cost was a staggering $13,375 for families.

Let congress shoulder this burden like the rest of us (until they find a better solution for ALL of us) and save American tax payers $3.8 million yearly, which should be thrown right at our debt.

4. Cut Wasteful Spending!!!

Here are a few examples I found of government money spent on ridiculous things:
  • $175 million dollars on buildings that the Department of Veterans Affairs doesn't use (including a pink octagonal monkey house.)
  • $112 million dollars in tax returns to prisoners (who aren't paying taxes?)
  • $1.5 million in new toilets for Denali National Park in Alaska

While some of these are ridiculous, some cuts are more difficult... but with a debt over 13 TRILLION dollars, we need to examine everything.

The six categories of wasteful and unnecessary spending are:

  1. Programs that should be devolved to state and local governments;
  2. Programs that could be better performed by the private sector;
  3. Mistargeted programs whose recipients should not be entitled to government benefits;
  4. Outdated and unnecessary programs;
  5. Duplicate programs; and
  6. Inefficiency, mismanagement, and fraud.
There is an untold savings here. I can't possibly list all the things you can find just in the first 10 Google search results for "wasteful government spending".

You can find some more extreme examples by clicking here.

We HAVE to do something.

Politics in America has become a partisan issue, a sporting event of the red team vs the blue team.

Real people, real lives are hanging in the balance. The quality of our lives, the future of our country is at stake. We need to fix this problem. We need to take the power out of the corrupt and ignorant hands who have drunkenly steered our country into murky waters. We have to get responsible, honest people in office and we have to start making small sacrifices now instead of gambling what we have left away.

~Paul

(I'm emailing this to my representatives and congressmen. I encourage you to do the same!!)

1 comments:

clayeth54 said...

The tax system is a mess. There are lots of good ideas on there. A flat tax is one, going to a sales tax system is another. The great advantage of a sales tax system is our government collects on tourism. Regardless of the system, it should be simple enough that we don't need an IRS army to enforce, and that it isn't a game for everyone to try and figure out how to cheat the system.