I liked this Post from Bruce Bartlett probably a bit more than it deserves, though it is very good, simply because it churned many ideas inside my head. The first Concept I determine is that We must separate Social Security from Medicare and Medicaid. A slight increase in FICA taxation would cover Social Security benefits, especially if the benefits were set at uniform amount. The second Thought came as a blazing Star: Medicare and Medicaid could be far better financed by replacement with a National Health Insurance program underwritten by elimination of the Personal Exemption and Dependent Exemptions now on the books.
Bruce decides to move on so I follow, and find that tax revenues will consume only 14.4% of GDP this year. Bruce goes into a slight contempt, richly deserved, for the ineffective Bush Tax Cuts. Many will disclaim about the Tax Cuts for the Wealthy in the sharp reduction of tax revenues. I will assert that the reduction in tax revenues coming from Business and Industry did as much, if not greater, damage to the revenue system. Bruce Bartlett would say that Obama must renounce his pledge not to increase taxes on Those making less than $250,000+. I suggest that Obama must raise Business Tax revenues by 34% overall to actually balance the Budget. One has to understand that through the Period of 1870–1963, Business taxes paid for much of the federal government; a Time where the United States advanced to be the leading industrial power in the World, though it was also a Time without major Entitlements. I am not suggesting that We should force the Business world to pay for Our Spendthrift Souls; yet, We could increase Business taxation to a point that Business leadership only made a few dozen times the Salary and Benefits of the Average American Laborer.
Bruce’s discussion on the possibility of a greater increase in GDP to aid in deficit relief ignores the long history of short intervals between Recessions with proclaimed needed Stimulus, and requires the Dreams of Mankind not yet witnessed on this Earth. It is obvious a new tax system must be created to actually reduce the deficit and debt, and I have previously discussed many potential amendments to the Tax Code in attempts to correct the relevant flaws. 60% of American Households are losing Life-Sustaining Income at a relatively rapid rate; We are not becoming a Third World country, but Second World maybe. My favorite Tax change for the Day is a 8% Tariff whereby foreign competition will have to suffer the same distress as domestic Producers in payment of Social Welfare Costs. We do not really need to be competitive in foreign markets, We could simply be Cooperative in domestic affairs and politics. lgl