From: gross@eric10.rtp.dg.com (Gene Gross)
Subject: Re: [X] -- Put 10% of my Taxes to Paying on the National Debt.
Date: Fri, 28 Aug 92 15:46:24 GMT
Organization: Data General Corporation, RTP, NC.

In article <1992Aug27.011416.27135@pony.Ingres.COM> garrett@Ingres.COM (QUOTE OF THE YEAR) writes:
>In article <1992Aug26.134734.8107@dg-rtp.dg.com>, gross@eric10.rtp.dg.com (Gene Gr writes...
>>In article <01GNTTBS9IC0002O0Q@utarlg.uta.edu> B645ZAW@UTARLG.UTA.EDU (Stephen Tice) writes:
>>>`10%' ???  What the Heck?
>>>
>>>We already paid = 14% = of each '91 tax-dollar for National Debt.
>>>
>>>And as best I recall, that's also been bumped up higher for 
>>>'92 tax-dollars as well. 
>> 
>>I hate to tell you this, but Congress has not spent one red penny on
>>reducing the actual debt.  They have only paid the interest on the debt.
>
>[Delete lots of very scary stuff]
>
>>America is about to get what it deserves.  And our children, their
>>children, and their children, will probably curse us every day of their
>>lives as they struggle under a burden we can't even begin to imagine.
>> 
>>Gene
>
>You've explained the debt problem very well (almost too well), but I'm
>left with the question, "What do you think of Bush's proposal?"
>	Is it anything substantial? Is it the same old BS in a new
>package? And most importantly, what can be done to avoid this before it
>hits?
>	You seem to know what you're talking about, so can you e-mail
>as well as post it? Thanks.

The problem with solutions is politicians, not politics. ;-)

Frankly, after studying this for the past year, I realize that three
solutions present themselves.

1.  Default on the debt when the time comes to pay the piper.  This
won't happen.

2.  Slash spending across the board by 40 percent and raise taxes 50
percent on everyone.  But this is a short-term solution because the
amount of interest is compounding at the rate of 8 percent a year.
Multiply that times $4 trillion dollars and see what you get.  Better
still, divide 72 by 8 and you find that the amount of money will double
every 9 years (good ol' rule of 72 8-)).

3.  This is the most likely course of action our politicians will take
-- monetize the debt.  That is, simply print money to cover the spending
and interest payments.

I seriously doubt that Americans have the concerted willpower to vote
out the big spenders from both political parties.  We love our political
infighting far too much to really settle down to solving the problems
that face us.  I know that sounds pessimistic, and frankly, I am.  A
year ago I posted several pieces about the economy and the debt.  Only a
few folks even bothered to respond -- Scott Cromar being one of the few.
Scott and I didn't agree on several points, but we did agree that
something had to be done.

I dont' trust Bush nor Clinton to resolve this problem.  It is going to
take someone with far more guts than the professional politicians we
have before us to do what must be done.

Personally, I favor Zero Based Budgeting.  Ever program and agency
starts off the fiscal year having to justify their existence and their
budgets.  This would include Congress and the White House.  Justify the
salaries, the benefits, the spending programs, etc.  Then at the end of
the year, whatever is left over returns to the General Fund for debt
reduction.  Any agency or program caught rushing to spend their
remaining budget before the end of the year in order to promote a larger
budget the following year would have their budget reduced by that amount
the following year -- not to mention firing the agency or program heads.

Further, I would somehow attach a proviso to salary increases for our
politicians (Congress and White House) that gauged the increases based
on the size of the debt.  I would end the "creative" bookkeeping that
Congress does.  I would remove the SS funds away from the Congress and
White House.  Everything else would go on the chopping block.  The only
reason that I would remove the SS funds is because we have lied for so
long to Americans that many have no other source of retirement income.
But I would also favor a phasing out of the SS tax.

If I thought it was feasible, I would even suggest that the Federal
budget be submitted to the citizens for their vote -- approve or
disapprove.  I would also give the President a line-item veto to really
provide a check and balance against Congress.  If Congress doesn't like
what the President vetoes, let them override the veto!  That is their
check and balance against the Executive Branch.

Finally, I would implement a flat tax for all incomes over $15,000 of
income.  I figure that 10 to 15 percent would do it, and I would end all
deductions for everything.  Forget deductions -- pay the tax and be done
with it.  This would include businesses and individuals.  But once this
was done, I would tie the hands of Congress and the President to
spending what came in and no more.

There is more, but this should be enough to start a minor skirmish on
the net. 8-)  At least, I hope people will deal with this posting.  We
really are in serious trouble folks, and the fault is on everyone's
shoulders.  Forget the blame -- let's try to figure out how to survive
the inevitable.

Gene Gross