Taxes and the Deficit

Issue and Position Statement

 

 

23 November 2003

 
A balanced Federal Budget is probably not realistic - but a responsible Federal Budget is both realistic and needed.  While unforeseen expenses and unexpected revenue dips may dash hopes for a balanced budget, a responsible federal budget is achievable.  A responsible budget is one that includes all known expenses and develops realistic plans for paying those expenses.

If something is important enough for us to spend the money - it’s important enough for us to pay the bills.  Everything must be paid for - and not by our children - they will have their own problems.

Today expenditure and revenue items are considered separately and the connection is frequently lost.  A method of automatically connecting expenditures to revenue adjustments is needed.  "The Deficient Supplement Plan", as described in the points below, makes that needed connection.

Deficient Supplement Plan points:

  The present method of determining expenditures, tax rates, and fees continues as is.

  Each year a Federal department calculates how much the Federal Government spent and how much it took in.  A supplement is automatically applied to the tax rates and fees for the following year to make up the difference.

  Differences cause by extraordinary events may be repaid over two years.  The current outstanding deficient may be repaid over ten years.  But ongoing operational bills must be repaid the following year.

  Individual Supplement items must be kept discrete, named, and published - so American taxpayers can see the impact of political adventures.

  The revenues collected via the Supplements must be used to retire the specific debts justifying them.  The money should not go into a general fund for running the government.  If politicians want more let them sponsor another Supplement item.

  Money for running the Federal Government must not come out of the Social Security Fund - and money already taken out must be paid back (another Supplement item). Political careers should not be paid for by American retirement dollars.

The Deficient Supplement Plan will bring the payment responsibility for political adventures within the careers of the politicians sponsoring them.  No longer should politicians be allowed to sell "pie in the sky" promises of easy pay backs in decades ahead.  It will make your conscious will feel better - your children will thank you - and it will Make America Better.

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