Quote:
Originally Posted by Villages Kahuna
Much of the effects of the deficit spending done by Congress in the last decade or so can be offset by increasing the marginal tax rates. We raise about $1.5 trillion in personal income taxes each year, so inceased taxes along with some reduced spending can resolve the deficit pretty quickly. No one will like a tax increase and such a move would be political suicide, but our fiscal problems are far from insoluable. Even if a significant tax increase was enacted, the result would likely be far from the highest marginal rates ever experienced in the U.S.
All I'm saying is that there is a solution to runaway inflation and skyrocketing interest rates--inreased taxation. Maybe it will take the political outcome of such a thing to return Congress to true fiscal conservatism.
The ship of state changes course slowly--but change it will.
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Continuing to feed the ravenous beast of Government with more and more tax revenues will accomplish nothing unless the direction is first changed. Today. the average national government employes earns twice what employees in the private sector earn. The easiest way to start to cut costs is to (1) freeze all government hiring except for the Military; (2) Start systematically eliminating entire operating branches of the government (National Park Service, the entire Dept of Education, all backroom processing activities of the IRS, all activities of the Department of Agriculture that are not a part of direct interface with American Farmers, Bureau of Prisons, etc); fire all government employees now employed in these positions and contract with private companies to do the work with savings shared with the US People. If the existing govt employees are good enough, they can be hired by private contractors, if not, then we are better off having them off our payroll. This cannot be done by government agencies - if any of you remember Al Gore reengineering govt and the savings he claimed, you can discover for yourselves that well over 100% of the savings came from slashing the number of Military personnel, reducing our fleet by several hundred ships, etc. All this came back to haunt us during Gulf I.