The Concept of austerity is an excellent idea, if utilized with the proper attitude. Robert Frank has some good suggestions, but lacks a coherent approach. Uniform persistence may be what is needed when the Crunch comes. The trouble develops because a positive posture towards Spending suffers when the economy starts to falter. Then everyone starts to claim special circumstance, and budgetary restraint is thrown out the window. Consistent programs are the Answer to the riddle of budgetary health, but How to organize becomes the issue. Here are some of my ideas.
1) The Interest Tax: Taxes are automatically increased to pay for the previous year’s Interest payments. The Tax burden is to be equally split between Excise Taxes, Personal Income, Corporate Income, and Capital Gains taxation. Tax authorities will automatically publish the Interest payment surtax in percentage terms on the last day of the current Tax year.
2) The Ticket Tax: Every Event requiring an entrance fee must pay a $1 tax for each attendant. Event holders have the option of either collecting the Tax, or simply considering it to be an additional Income taxation. This Ticket tax will bring in an immense source of wealth, with only a general taxation of Entertainment.
3) The Foreign Product Tax: Every Sale of a foreign Product receives a uniform Quarter per Sale tax. The Tax would be assessed directly at the Cash Register similar to a Sales tax, and of such nature that almost no Receipt will have over $3s in Taxation. It is not an excess taxation, especially if only one assessment is made for multiple identical items which are purchased on the same Receipt of the same item.
The enjoyable aspect about all three forms of taxation is the realistic evaluation that none of them would have any impact on Employment levels. The taxation is of too minute a nature, with the Products and Services so necessary for normal lifestyle conduct, that everyone would consider the taxation equal to inflation. I like this form of budget alignment because it raises huge tax revenue with little economic drag. It need be considered as it is somewhat neutral tax strategies at increased revenue levels. lgl