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Blessed are the young, for they shall inherit the national debt.
– Herbert Hoover
All democracies institute programs for current voters and shift the debt to future workers, even the unborn. Social Security, Medicare, prescription drug benefits for seniors are prime examples of those programs in America.The 12 Super Czars Can’t Reduce the Debt
The federal government created a dangerous debt. For many years, Congress and Presidents have spent more than the revenues received. Of course, over the past few years, the deficit and the debt have sky-rocketed.
Tragically, government is so dysfunctional that politicians cannot reduce the size of our bloated government. Hence, Democrat and Republican leaders appointed 12 Czars to reduce the deficit by 1.2 trillion in 10 years. Sadly, the Czars are as dysfunctional as the President, Senate and Congress, as reported by the Wall Street Journal.
Republicans have suggested increasing revenues by $500 billion by limiting a deduction to 2 or 3 percent of taxable income.
Senator Toomey explains some of the Republican's suggested trade-offs in the Wall Street Journal:
In return for these cuts in deductions, Mr. Toomey says the top individual tax rate would fall to 28% from 35%, with the other tax-rate brackets falling by similar proportions. The current top rates for capital gains and dividends (15%) and the estate tax (35%) would remain unchanged.
In exchange, the Democrats would cut $750 billion. A big portion of the cuts would be achieved by recalculating the consumer price index (CPI), which affects all cost-of-living increases to government programs. No changes would be made to ObamaCare, Medicaid and Medicare and the Democrats steadfastly refuse to discuss these budget-busting programs. Again, the Wall Street Journal reports:
As for spending cuts, Democrats would only have to agree to $750 billion over 10 years. About $180 billion of that would come from changing the inflation calculation for benefits, so the other reductions would hardly be extreme. Keep in mind that any changes in ObamaCare (with its 3.8-percentage point payroll tax increase) and major reform of Medicare and Medicaid were long ago ruled out by Democrats.
The WSJ headline called this a super offer. Uh...No. This is piddling. America must make major changes. These small changes only perpetuate incompetent governance in DC.
The CPI adjustment will be more accurate than the present system. The tax proposal is positive. However, it slightly reforms a tax code long disfigured by special interest favors. America needs major tax reform, which will foster economic growth. The offer is piddling in comparison to what is necessary.
ObamaCare, Medicaid, Medicare and Social security are the budget busters, and the Czars cannot even talk about reform. Again, the Czars are not serious. Of course, most politicians have not been serious stewards of America’s budget for many years.
Fortunately, FreedomWorks and the Tea Party Debt Commission are offering real changes. On November 17, Senator Mike Lee of Utah will introduce the Tea Party Debt Commission's recommendation.
Again, only major reform will save our children and grandchildren from the crushing debt burden that is now engulfing Greece, Italy and many European democracies.