Tag Archives: Budget

An Open Letter to Congress Part 2

“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it.  If it keeps moving, regulate it.  And if it stops moving, subsidize it.”  ~Ronald Reagan

By Alden L. Benton

In my last post, I began an open letter to Congress criticizing their self-serving cowardice and lack of integrity.  I issued a warning that we are watching and we will judge them harshly if they fail to deliver as promised.

Today I lay out a basic plan, an agenda, for Congress to fulfill the mandate delivered in the last election.  In doing this, I am making a leap of faith.  I am assuming that the majority of Congress will grow a spine and have the courage and integrity to look beyond the next election, and beyond the demands of the donor and lobbying class, to solve the festering long-term problems that face the nation.

To all the members of the House of Representatives and the Senate:

When your loyalty returns to the people, and to the nation, the solutions to our problems become amazingly clear and simple.  Here is a simple agenda that this Congress can easily complete and send to the president’s desk.

Repeal Obamacare and its myriad regulations in its entirety.  Do not replace it with another form of big government boondoggle.

If necessary, pass simple clear legislation, under the true meaning of the commerce clause, to ensure individuals are able to participate fully in a free and open market to purchase a health insurance policy from another state.

Make any adjustments, such as protecting individuals with preexisting condition, simply and directly in separately deliberated legislation.

Tax reform is even simpler.

Eliminate the entire labyrinth of the U.S. tax code.

Replace the tax code with a flat tax.  Everyone will pay a truly fair share.  If the rate is 10 per cent, then both the rich and the poor will pay their proportionate share.  No games.  No deductions.  No withholding.  No Internal Revenue Service.

Balancing the budget is not rocket science.

As any responsible head of household would do, cut up the credit cards, stop borrowing, and stop spending more than is earned.

This is a simple, rational concept that even Congress should understand and they could easily apply it to the federal budget process if they can put aside their selfish partisan wrangling and gets down to the business of putting the long-term well-being of country ahead of themselves.

Additionally, if spending and revenue are balanced, there will be no need, except in extreme emergencies, to borrow money.  As the old saying goes, never a borrower or lender be.

By balancing the budget and eliminating borrowing, the national debt will decline over time.  By balancing the budget, and funding only the projects deemed absolutely necessary and within the limitations of the enumerated powers in the Constitution, the need for large, ineffective, and costly federal bureaucracies becomes unnecessary, effectively downsizing the government.  In effect, this drains the swamp.

As spending contracts, the government contracts, and the less the government has to spend creates a smaller pie for the lobbyists and big donors to carve, thereby lessening their influence, and minimizing government interference in our lives.

We must make hard choices in order to achieve these goals.  Attitudes, both inside and outside of our government, must change.

The decades long tax and spend mentality must die.

The “gimme” mentality must die.  There can be no more free rides.

We must restructure the major entitlement programs (Social Security, Medicare, and Medicaid) to maintain their continued viability and their ability to continue to serve their recipients.

It all starts with Congress.  Congress must grow a spine.  Congress must muster the courage and integrity to deal with these long-term issues now.  The country cannot wait.

The time to act is now.  We cannot wait until sometime far in the future in a galaxy far, far away, when all the stars and planets are in perfect alignment.

“A government big enough to give you everything you want is big enough to take everything you have.”  ~Barry Goldwater

©2017 Alden L. Benton / Independence Creek Enterprises
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Democrats Stuck on Stupid

By Alden L. Benton

According to a Reuters article (Democrats Push Tax Hikes First in Deficit Talks), the Democrats on the Congressional “super committee” who are “negotiating” deficit reduction details are demanding tax hikes first.

The Democrats are stuck on stupid. 

The reason we have a deficit and an ever-increasing national debt is simple: the government spends more than it takes.  The obvious solution is to spend less.  However, the Democrats want to fiddle while the country burns.

The foundation of Democratic Party thought is socialism. 

In a more American terminology, the Democratic Party’s creed is based on an ever-expanding, and increasingly powerful, government which derives its power not from the consent of the governed, but through continual class and racial warfare.  This power is supported by a confiscatory tax scheme that punishes success and rewards subservient dependency.  The result is loss of liberty and an unsustainable welfare state.

According to  usgovernmentrevenue.com, since 1950, income tax revenues have averaged 12.16 per cent of gross domestic product (GDP) and federal deficits have averaged 2.25 per cent of GDP.  There have been 10 budget surpluses since 1950, including four years in a row from 1998 to 2001.

The point here is that in my lifetime, the government has spent more that it took 84 per cent of the time. 

Revenue is not the problem.  Spending is the problem. 

We cannot, as Vice President Biden infamously suggested, spend our way out of recession.  This should be painfully clear as the near trillion dollar stimulus of 2009 failed to do anything but extend the reach of government into our daily lives and push us closer to the precipice of insolvency. 

Yet, the Democrats continue to do the same things over, and over again, expecting different results. 

This is the definition of insanity.

The Democratic Party and the president cannot rewrite the laws of economics.  History shows that where economies are the most free, all of society benefits and government revenue actually increases.  Conversely, when economies are restrained, everyone suffers and, even with tax hikes, government revenue decreases.

This is not the time to increase taxes.  Our economy is struggling under high taxes, fiscal uncertainty, and excessive regulation.

Instead of talking about increasing taxes, the Democrats on the super committee should concentrate on reducing spending, freeing the economy, and, yes, reducing taxes. 

We will all benefit, including the 47 per cent of citizens who do not pay taxes.  Perhaps it is time that they pay their fair share as well.

©2011 Alden L. Benton/Independence Creek Enterprises