I read a story today that the Congress and the President are in negotiations and the President’s plan is, “Tax now, cut later.”
Are you kidding? This is his plan? You know what is scarier? Boehner seems willing to go along. Wow…
I read a response from an ” Independent” on Politico regarding this development. He was so excited that the Congress and the President are ” finally coming to an agreement that will get something done.” My thoughts?
Agreeing to do something stupid is worse than not doing anything at all.
You see, this equation, “Tax now, cut later” never happens. Well, at least HALF of it never happens. The taxes get higher, but the cuts never come. The budget keeps increasing and then, guess what? In a year or two we are right back where we came from and the solution is, you guessed it, higher taxes again.
So, here’s my plan Mr. President ( if that is your real title) and Mr. Boehner. “Cut now, tax later.”
Where do I get my background to build a plan? Parenting.
Parenting is about accountability. At least, it always has been for me. When my kids told me they were going to do things differently or better, I always said to them, “Prove it. Show me.” Why? Well, because people can promise anything but they don’t always follow through. You can’t give them what they want until they show you that they will fulfill their end of the bargain. So, hence my plan. Here it is.
1. Cut all programs right now by at least 10% of REAL SPENDING. Not proposed spending, but what is really being spent now. I mean everything, including the salaries of the Congress, the administration, their staffs, their perks, everything. Yes, I know the government workers are in this group, but are they any different from the rest of us out here living on a salary?
2. These cuts must be maintained for at least two years before any tax increases are discussed. At the end of the two years, everyone takes a look at the fiscal state of the national budget and then, if needed, tax increases can occur. The tax increases must be tied to continuing the budget being held to the 10% cut. If the spending goes up, then tax increases will not occur. Part of the revenue raised from any tax increases MUST go to debt reduction. Tax increases need to be across the board.
3. If, at any time, Congress or the administration attempt to circumvent the budget reduction plan, their salaries will be cut an additional 10% and the tax increases will be eliminated.
4. While this cycle is occurring, government agencies MUST continuously work to reduce their budgets by at least an additional 1-5% each year.
The two year cycle needs to continue, even through elections.
I know I am not a financial wizard. I can barely keep my household finances on track. But I am really tired of watching these self serving children in Washington fool us with their empty promises. At least this idea is a place to start.