Thursday, August 5, 2010

A New Idea For Financing The Public Sector

Not one single new idea since George W. Bush. Is that what President Obama said? I accept that challenge. I realize of course that by virtue of being a Christian Minister my ideas can't be taken seriously by the President. ( That was sarcasm for all of the secular socialists) In fact, there are officials in government that assert that ministers are not entitled to voice any political ideas at all. I however will not surrender my rights as a citizen. And I have an idea.

Many people have expressed concern over the Federal Budget Deficit. I think it is an abomination myself. Many people have expressed disgust over the Income Tax. I likewise believe that it is bad economic policy and bad social policy. When I council individuals and couples, one of the overwhelming issues is always financial. This comes down to a few major economic factors. The first is that while young families find available mortgage opportunities, the explosive increases in real estate taxes “to triple digit millage in many jurisdictions” has made home ownership impossible to them. Then there is the recent “income tax scam” perpetrated by the Federal Government. Remember that? They changed the withholding tables but not the tax tables. So that in the last filing year, many families found that the refund they were counting on was gone like smoke in the wind. Or even worse, they actually ended up owing the IRS more tax. And then there is perhaps the most spiritually toxic of all, DEBT. Mortgages on houses that they can no longer afford. Car loans that leave them upside down on value versus loan balance. And the worst of all consumer credit and credit cards. Debt is spiritually toxic. Debt is something I always advise people to avoid. It is morally wrong for individuals. It is morally wrong for businesses. And it is even morally and ethically wrong for government.

So what to do? Step one is simple. We need a Constitutional Amendment banning all income tax for all time. At the same time this amendment also needs to permanently limit residential real estate tax to 1/20th of 1 percent of fair market value. The income tax does have to be replaced. And the best replacement is a National Sales Tax. This sales tax should be permanently limited to 15%. The 15% should be split in this way. 2.5% would be for use by the Federal Government. 7.5% would be for use by the State Government. 2.5% would be for use by the County Government. And finally 2.5% would be for use by Local Government. Every dollar other than the Federal percentage should be apportioned by population. Then let those jurisdictions prioritize the services their constituents want and need.

But what do we do about deficit spending and debt in the public sector? I think that there is an answer. How about this? If an individual whether elected, appointed, or hired to a public position (paid or unpaid) writes, votes for, authorizes, signs into law or implements any financial transaction, contract, or budget that results in deficit or debt (even in so called “out years”) shall be guilty of a Class C Felony. These people should be incarcerated for terms commensurate with the amount of the deficit. Yes! I want to criminalize deficit spending. That is accountability!

Now I do realize that I won't live long enough to see this happen. But wouldn't it be wonderful. People, businesses and government all living within their means. With liberty and justice for all.

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