Budget Plans

Robert Reich generates a truly good Read with this Post, but skirts the primary Issue surrounding the federal budget. This is the fact that federal liabilities are destined to increase drastically in the years ahead, as people of my Age bracket retire–We Baby-Boomers have always been somewhat of a Social problem. The Bush venue of attack on this Problem consists of an attempt to limit the benefits of Social Security participation. This stands as a genuine political no-show. Baby-Boomers are the first Generation who fully-funded Social Security, paying an outrageous Price for Our Parents and Grandparents’ care. Conservatives desire this method basically because in this way, the basic federal Tax system does not need to revamped, so that ridiculous (real) Tax rates can be maintained; the Social Security Fund still financing a great deal of Government Spending.

Those of Democratic persuasion, like Robert Reich, would accept a position of increasing national debt, thereby insuring the ability to pay for the Democratic agenda while freed from the creative destruction of tearing down a popular Republican agenda of low (or avoidable) Taxes. It remains a pleasing format, and gains no irritation from the Electorate. The only trouble with it lies in the eventual downfall of American Credit. Such a platform with reduce the Standard of Living in this Country to the base level of some Third World nation. The American economy and Lifestyle is actually in no danger, because common Americans will not allow such degradation through a definitive course of action; the only Question is ‘How long will it take, and how bad must it get, before Taxpayers and Voters demand some effective leadership?’

It is now time for myself to propose some common actions which can be undertaken to avert future strife in the American Economy. The paramount necessity is a complete revamping of the federal Tax system. I would advise a Tax system with literally not Exemptions, Deductions, Credits, or reductions of any type (i.e., nominal Tax to equal the real Tax). Rather than the dismantlement of the Social Security program, I would advocate the elimination of all 401(k) plans of any type (including Koughs, IRAs, etc.); first, they would not matter if the tax rates were set correctly, and second, there is no limitations in the total amount of Windfall granted with these Plans due to their multiplicity.

The next Move would be against Health Care Providers–limiting the largesse which they can gain from Patents and Royalties, establishing Health Care Zones where health care personnel must be Set-Salary employees of the Zones, and setting a maximum limits to individual Charges (nominal amount) before they are adjudged to be Employees or Contract Facilities of Government agencies with no further Profits or Wages granted; where they must provide Health Care for a proscribed number of Government Patients. I estimate that 50-60% of medical Costs can be eliminated by these practices.

Most Economists, and all Health Care Providers, will violently disagree with the above Program of action, and all Taxpayers will grouch at the Tax system until they realize the advantages in it. All Taxpayers will deduct their Social Security contributions from the overall Tax, and hopefully, all State and Local taxes (nominal limits set yearly). Normal Business Expenses will be deductible, but Tax Credits for Investment will be void; an incredible increase in Employment will occur, as foreign Investment loses appeal because of high Risk and need to produce domestically (this can get to be an involved argument, so I will leave it to another Post). Is this Radical? It is, but to enter the third decade of this Century without distress, it will have to be adopted. lgl