2010-07-26

Silly Idea: Balanced Budget Tax

When I was in my teens and twenties, I was a Reagan Republican. I watched Family Ties and never understood that Alex P Keaton of Family Ties was meant to be a joke. I looked at certain things and said "Its simple and thus makes sense." and with the blinders of youth went my way. One of those things was that if you lowered taxes continuously eventually you would starve the Government beast and have a smaller government. Well 30 years later, we have found that when you untie spending from taxes.. "We the People" will just treat it like a Credit Card and spend spend spend because we are sure that we will somehow be richer in 2 weeks and be able to pay it all off.

I could blame Congress for this, but well Congress is just people that "We the People" have the responsibility of voting into and out of office and keeping track of what they do. And basically as long as they gave us stuff and billed us later we have been over-all happy with them. So anyway, as an experiment in a great line of experiments that the American democracy has had, I would say that "Starving the Beast" has been a flop. So its time to come up with something radical from the other side of the coin. If "we" will spend like crazy when Taxes are down.. then lets raise see about the other route. Thus a call for the Balanced Budget Tax:

All taxes are raised per year to make sure that the United States Budget is balanced, and any outstanding debt will paid off in no more than 20 years. Congress may not put off costs to future years but make sure that any program is paid for with current funds. (Basically treat the current debt as a traditional fixed rate mortgage that we will pay off in 20 years.)


I have the feeling that this might have a stronger incentive to get people to understand what is being spent and what for. If a super majority of people want more government programs it is paid for now versus future generations.

Yes this idea is too simple and would fall over badly in the real world... however this seems to be the year of silly idea.
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