Anyone who reads my blog knows I am greatly concerned about reckless government spending and the future of America. I recently looked over Paul Ryan’s Raodmap for America’s Future and was very impressed. I’ve long supported a flat tax.
As I thought about this and many related things I realized some key problems we have in America. First of all our elected representatives are sent to Washington to serve us. Most of them are not. The reasons are explained nicely in this video explaining that the largess of government is the root of the problem. 2009 shattered records for government spending, borrowing and no surprisingly lobbyist revenue. It becomes clear that no matter how you attempt to reign in taxes and spending there is no proposed system to assure government won’t spiral out of control with crony capitalism and power and wealth in bed. Corruption is like a weed.
I’ve come across some good ideas but essentially I feel we need to focus on reality. Allow me to explain reality as is pertinent to human beings. You can either complain about the nature of human beings and suffer that the always fall short or you can recognize the nature and change the game so that they always exceed your expectations. For example when someone offends you if you immediately initiate a hostile dispute you engender hostility in return. If you approach the person with the idea that you are sure that they did not mean to offend you and explain how a problem resulted from what they did most people will want to demonstrate their goodwill and there is no dispute.
Do you doubt our nature? I was astonished to hear the other day that even in recent years with economic difficulties the US has been realizing over $300 billion a year in charitable giving. The recent Haiti disaster again showed what America is made of with hundreds of millions donated. We are by far the most generous people per capita in the world. We feel good when we are given the opportunity to help someone. We don’t particularly enjoy when someone responds to difficulty by holding us and gunpoint and robbing us while they apologize.
This brings me to my idea. Why the hell did we even do a 16th amendment and create an income tax? Could anything be more evil. The very people we elect to represent us manage the money and insure it is collected, then vote themselves raises with it. Can you imagine our founding fathers setting up such an unchecked unbalanced structure? I can’t. On top of that so many taxes are hidden they epitomize the axiom “out of sight, out of mind”. One flat tax proposal I recall was to send it in on a postcard at whatever percent of your income it was set at. Recently I got a better idea. See how you like this.
First of all every agency of the government has a manager and most have inspector generals. This derives from an idea I recently heard. Set the salary for all managers at national average. Set specific operational requirement targets for the agency or division. People using the government service rank it. Falling below a passing level docks pay, exceeding it incurs bonuses. An inspector general for fraud and waste produces a report on agency performance. Performance below a passing level docks pay and above incurs bonuses. Any additional efficiencies and savings offer a percentage bonus to management provided it doesn’t lower effective performance. Savings and performance bonuses are made available on a smaller scale to employees.
As far as government employees are concerned they work for the American people and as such there is no reason to assume collective bargaining. Unions have been raping companies but especially the government and it is why the average American job pays $44K/yr and the average government job pays $75K/yr. That has to stop and new pay, benefits and retirement plans negotiated. Otherwise we become Greece. BTW negotiated here means public hearings. If government employees are unhappy about losing their largess I think there are a few unemployed people who would be happy to have a new job!
One more thing. Power changes. Anything that would land you in jail as an executive at a public company ought to do likewise for any government employee or congressional representative. Borrowing from social security or pensions? Go to jail!
This brings me to the part which is my idea. No more taxes. Each agency posts on the internet the annual budget it is requesting. This can be discussed online and by news outlets and public information channels. Here’s the good part. Instead of the government holding a gun to your head and extracting taxes we do away with taxes. Since you’re no longer paying taxes you can certainly afford to help keep your government running. Hey, I’d love to see the president get on a public TV channel and pitch for money for a government agency. Money can only be spent that is put into that agency. Transferring funds is illegal.
So right now congress has a 10% approval rating. I’m going to go out on a limb and say that congressional funding might be down at the moment and I’m just guessing here but I bet that a really skinny paycheck would get their attention and get the leadership off it’s royal attitude. I suggest mandating that funds collected in excess of request divert by default to debt service and debt service is one option citizens could choose. By going to the main page you could see what agencies most needed your money. Now let’s say the EPA tries to use the carbon scam to regulate without legislation. We have an answer for an agency too big for their britches. When their money starts to drop there will be an outcry for new management… but then again with a really poor rating that manager might as well quit… unless they like paying fines to work.
I don’t believe as a people we would knowingly let our government fail to operate, but right now most people feel the government is not only failing to operate well but threatening our liberty. I would ask exactly what motivation our government has to behave any differently? We’re going to need to elect people with amazing courage to stop handing out candy which we dearly love and which will probably lose them their job for saving the country. Then again if they fail to do what they should or get sucked into the culture of corruption our government will fail, and by this I mean economic and social collapse. It’s not something a reasonable person can question. When you owe more money than there is and your debt is growing faster than you can ever pay it back while your currency is based on trust it’s game over. That day is coming.
we’ve been looking at how to deal with the subversion of the founder’s ideals based on what we have done. Wudrow Wilson gave us the federal reserve and the income tax, among his horrible contributions leading us to two world wars and more. FDR gave us social security, a Ponzi scheme time bomb that unravels when life expectancy rises and birth rates drop. JFK gave us unions in government. LBJ gave us the great society and medicare. Our current congress and president is just hitting it with steroids.
The government has no business in our retirement or helping the poor. I believe any organization that wants to work in this charitably should be able to apply for a certification license. If audited and certified by the government those charitable causes would be listed on government web sites and information as audited and certified organizations where their accounting records are verified as to their legitimacy as a charity. Clearly this would cost money and their would be no taxes, thus no deduction, but obtaining this certification would make a charitable cause much more high profile and give it far greater access to funds.
Along with this there should be a balanced budget amendment that allows an exception only for war or natural disaster. One consequence would be the elimination of a lot of government waste. There would be government jobs lost. However other benefits would ensue. Currently education for instance holds states hostage by handing them money with strings attached. Seems to me that is the wrong direction for such assertion of force. If we decided we were unhappy with our public education system being centrally controlled by a government listening only to teachers unions who donate heavily to their sycophantic and usually Democratic congressmen we could change all that by closing the purse. Now if Washington isn’t benefiting us we simply defund them and fund our state and local education.
Here’s what puzzles me. How did a bunch of peasant farmers and citizen militias manage to defeat the largest and most powerful army and navy in the world to gain our independence over a 2% tax on tea… and somehow this spawned a nation with the central idea of “you can’t fight city hall”? We can do anything and we can feel much better doing if it we know we are insuring freedom. One last thought on this whole idea. I believe we would not let government fail, but if we enacted my plan the economic explosion in this country would be unlike any seen before.
Simple Principles
Wednesday, February 24th, 2010My parents told me they had a simple goal, to leave the world better for me than they found it. I think that should be a morning ritual pledge. I admit I appreciate hedonism. I’d love to be on a tropical beach in a party environment misbehaving. I am willing to embrace our animal desire for indulgence and I’m not proposing that our course in life out to be absolute self sacrifice for the next generation. That’s not what I’m talking about. Several years ago I noticed a funny bumper sticker on an RV “I’m spending my grandchildrens inheritance”. Hey, why not. Of course the funny thing is if you blow it in Vegas you don’t get taxed but if you will it to them you do.
If you have saved your whole life and feel like you ought to spend it then I’m fine with that. The reason we have trust funds is because rich people like Bing Crosby found when they gave their kids a million dollars they blew through it in nothing flat. Let’s face it, money doesn’t mean the same thing to us when we don’t earn it. This is why 97% of major lottery winners are financially ruined within three years of their prize. This brings me to my point. I’ll illustrate by way of a home mortgage. I remember hearing that Japan had 100 year mortgages. Imagine being born and being in debt for a huge amount of money the day you first saw daylight.
This really is the point. Have a look at a young mother pushing a child in a stroller and think of it. This month that child takes out $325 in debt because our government is borrowing $100,000,000,000. By the time they are 18 that would add up to $70,000 but that’s not counting the $40K in debt there already, the interest, social security or medicare. It also doesn’t count numerous other factors that make it rise horribly. In fact our total amount of money promised currently exceeds the total wealth of our nation. Remember when borrowing meant paying the money back? When exactly do we pay the money back?
The truly amazing thing about this is the left leaning perspective. I mean think about it. China has started selling off our debt. Europe is in such disarray that it looks like Greece may default on it’s debt and Portugal, Ireland, Italy, Greece and Spain are now known there as PIIGS for their economic troubles. China is no longer considered our biggest creditor, Japan is, except you could argue it’s the Fed. So what does the left want? National health care. Let’s ponder it. Right now it’s estimated that medicare is being defrauded byt $70-$120 billion a year. That’s fraud, as in doctors doing 200 procedures a day and pizza parlors getting checks for performing medical procedures. In Florida the mob is getting out of drugs and into medicare fraud because it’s safer and more profitable. Last I hear the president still hadn’t nominated someone to oversee medicare and the budget isn’t there to handle this. Lefty wingnuts howl about 30% overhead in profits and some mysterious 4% administration cost for medicare. It’s probably the lack of oversight. Credit card companies charge 3% and have a fraction of a percent fraud. Profit is why. In the UK they had 4,000 babies born in hospital corridors and on sidewalks last year. One UK pol said they instituted their program after WW II when they were in a shambles. Now UK health care is the third largest employer in the world behind the Indian raliroad and the Chinese red army. They can’t vote it out.
The argument is to be compassionate to everyone today and make it so they don’t have to pay anything. Like free money. Squat down, close your eyes and grunt… Hmmm? That doesn’t smell like money, but it is free. Here’s the problem with this compassion. Let’s say you want to take all your friends out to dinner. You go to the restaurant and order drinks. They take your credit card and come back and inform you there is no money on your card. There you are trying to feed everybody and there is this little snag. Of course we know what to do, right? We email our congressman and ask them to make a law that our credit card can’t be refused, right? Wrong! At some point we have to recognize that no matter how kind and thoughtful we are somebody has to pay, and pay they will. Hand them the government sugardaddy card and have at it. Drinks for everyone, caviar and foi gras. The sky’s the limit. After all your children and grandchildren will pay. Hey, maybe you don’t even have kids. Too bad those other suckers weren’t ready for the end of the world. Eat drink and be merry for tomorrow we implode under the fetid debt of 40 years of excess.
When I was young I remember hearing the name George Bernard Shaw in high regard. Not long ago I saw a video clip which this video where he extolled the Marxist collectivist idea of killing those not useful to society. It is ironic that the collectivist idea that says we are our brothers keeper means we should provide for them and yet at the same time if we are engaging in generational theft we are clearly harming the collective. Of course all collective agendas must be implemented by a strong central government. Strong central governments are answerable to no one so piss on them if they don’t like us destroying society, right?
Here we are in a world I never imagined. Call me old school if you will. When I heard banks had problems with NINJA (No Income No Job no Assets) loans I was flabbergasted. How the hell do you get a loan like this. Oh yeah, the government decided it would be the good thing to do and used Fannie and Freddie who then saw the huge profits in mortgage based securities. That meant Wall street bankers could go for it and privatize the profits while socializing the losses. When people say capitalism failed I want to see if they can recognize Shinola, or say a hole in the ground. Don’t worry, your Wall street banking dollars are being well spent in the new financial capital of Washington DC. If you want to see capitalism fail you will need to look at a small business who is not too big to fail as they struggle to get a loan while all the money is now being loaned to government while they spend like crazy. Capitalism hasn’t failed, but it is getting strangled by socialism from above and below.
And that brings me to another simple principle I was taught. Be honest. I know, how silly and old fashioned is that. I guess it depends on what the meaning of the word is is. When FDR started social security he gloated that nobody would ever be able to get rid of it and get re-elected. Remember government of the people, for the people and by the people? What would happen if you set up a retirement plan for your business and then borrowed money from it and used the money from younger people coming in to pay older people. I’ll tell you. You would end up parked next to Bernie Madoff. That is exactly what was done with social security.
There is an old saying that the older I get the less I know. When we are young we are ready to change the world, but with time we come to see things differently. Where we used to challenge the ideas before us we come to see the wisdom in them. Let me tell you about some really cool guys, Madison and Jefferson. They really distrusted government. Jefferson said “government governs best that governs least”. Madison was instrumental as a key thinker in forming our constitution. You may not care about their opinions but I bet they would be dismayed with our government today.
I know this isn’t popular but I don’t want a dime from social security. Did you know that the Amish don’t have to pay in because they are conscientious objectors? It does not require a religion. However it is frightening to consider confronting the IRS and the government. On the other hand in a just world things would be different. Government employees and elected representatives would be held the the same practices and laws as private citizens and corporations. Much of congress past and present would be in court or in jail for defrauding the America tax payer. FDR would be remembered for starting a Ponzi Scheme. LBJ likewise. Thousands of laws including social security would be rolled back as unconstitutional. People would begin saving for their golden years. The average 65 year old would be a multi millionaire if they put their social security payments instead into a mutual fund.
Here is the amazing paradox of our current dilemma. I recall in the 80s being told debt was insurmountable. it wasn’t. In WW II we fought wars on two fronts and we beat Japan with 18% of our industrial output. At the start of the war they had the best navy in the world and vastly superior aircraft. In the war of 1812 Andrew Jackson beat the British who were at the time the best army and navy in the world. In less than a decade of JFK saying we would go to the moon we were there. We can do amazing things, but only if we adhere to simple principles.
It’s time we stopped being a bunch of babies and demanding a wet nurse. It’s time we told Washington DC to get the hell out or our lives. Last year we had over $300B in charitable giving and that is with one of the worst tax burdens in the world. Imagine the explosion of greatness and dignity if we ditched Marx and instead went for Madison.
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