tag:blogger.com,1999:blog-3288462925756379716.post6418610958335030054..comments2013-01-03T05:53:29.294-08:00Comments on Left Right Across and Hold: DeficitsBernardo de la Pazhttp://www.blogger.com/profile/13311733730523945450noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3288462925756379716.post-64327662898187984202011-07-24T04:44:48.808-07:002011-07-24T04:44:48.808-07:00I've said before that everything should be on ...I've said before that everything should be on the table. That includes tax increases. It also includes some serious cuts in spending. It's not either-or. But I want cuts that take effect NOW and on the same schedule as tax increases - not at some nebulous 'projected' point down the road.<br /><br />I think the serious problem goes back to the fundamental question of what is a proper function of government. Frankly, I think we're paying WAY too much for what we get in return. (And, yes, that does include defense spending.) It's been said by some we could save 100 BILLION just by eliminating the Dept of Education. Is that a Bad Idea? I'm not 100% sure... But I *do* know we're not seeing the results for the money we spend. <br /><br />If government has been proven to be unable to accomplish a task more effectively and efficiently that private concerns doing the same thing, then why keep doing it? Or worse yet, always - ALWAYS - operate from the position that "we just need to throw more money at it". Why should it be so hard to fire an incompetent civil servant (they work for US don't they?) <br /><br />We need some Big Cuts in existing and proposed programs. We need drastic changes in our tax code ("fairness" is non-existent). We need to accept there are no sacred cows everyone is being hurt by where we are and everyone needs to step up and shoulder part of the burden. The first thing I'd like to see is an immediate 10-20% cut in Executive/Congressional/Judicial STAFFING and budgets.<br /><br />Here's a simple idea no one is pitching...<br /><br />Cycle everything back to the 2009 spending level. No increases for new programs started since then (all suspended). No budgetary increases for COLA, etc. No raises. No etc.,etc.,etc... And freeze spending at that point - NO INCREASES OF ANY KIND! - until we get a balanced budget WITH a deficit reduction plan AND a new tax code (e.g. Fair Tax).<br /><br />Not a complete solution by any means, but it's a start.<br /><br />- Steve<br />(We're going to end up agreeing on the basics of this, except for the details.)Steve Greenhttps://www.blogger.com/profile/11281228341784551551noreply@blogger.comtag:blogger.com,1999:blog-3288462925756379716.post-28791050316489423552011-07-22T17:58:14.312-07:002011-07-22T17:58:14.312-07:00I thought the Post article was balony, but I also ...I thought the Post article was balony, but I also think the problem is one of spending AND revenue. Note, on the chart you reference, the deficit nose dived after the Bush tax rate reductions (please, don't call them "tax cuts") of '01 and '03 - which goes directly against the conservative mantra that lower tax rates result in higher tax revenue.<br /><br />If I remember correctly, the CATO Institute opined that the Bush tax rate reductions would eliminate the Federal DEBT in something like 5 years - a miscalculation of a mere 10 trillion by the crack CATO team.<br /><br />If you want, I'll send you a Price Waterhouse compilation of U.S. venture capital investments during the period 1995 to 2011. Incredibly, VCI's literally dropped off a cliff during the period Q1, 2000, to Q1, 2003 - and have not since recovered.<br /><br />Which is amazing, because this is just the opposite of what the Bush tax rate reductions were designed to do.<br /><br />My short answer is that American investors used the extra capital from the tax rate reductions to plow more money into mortgage derivitives, and that money went up in smoke when the housing market went sour.<br /><br />I've got a lot more to say on this, but I wonder if we are headed for a disagreement characteristic of what is happening in Washington right now. My take on this is that you aren't really serious about DEBT (not deficit!) reduction unless everything is on the table - including tax increases.<br /><br />Like the guy in Full Metal Jacket said, "Its a big sh*t sandwich and we all gotta take a bite."Chrishttps://www.blogger.com/profile/02107206395412209448noreply@blogger.com