Once again, the surplus will be helpful, allowing the government to maintain its commitment to current retirees while allowing workers to shift to a new approach that will make them much better off. The battle over the surplus, however, is not confined to the big spenders and tax-cutters. A third option is advanced by those who argue the extra tax revenue should be used to pay off some of the national debt. This is a good news-bad news proposition. On the positive side, proponents of this view recognize it would be wrong to let politicians spend the money.
Politicians can choose to do all three options.
Under the proposal, the bulk of the money would go to the Highway Trust Fund, meaning politicians would be able to engage in an orgy of pork-barrel transportation projects. A small fraction would go the superfund program, which is supposed to clean up toxic waste sites but instead is a private piggy bank for trial lawyers. Given the serious problems that bedevil both our tax code and Social Security, policy makers would be wiser to use any surpluses to implement the flat tax and Social Security privatization. Then, after these two fundamental reforms are accomplished, we will better be able to afford paying off the debt. E.W. Scripps Publications , All Rights Reserved.