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August 07, 2011

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Matthew Reynolds

Yes they should revisit this tout suite ! There should be an emergency set of measures to cut the $1 trillion in bureaucracy highlighted on this website a few months ago.That should take the deficit down right away by repaying China $1 trillion of the $1.2 trillion that the American's owe them.Then in future years this lower spending just means less need to borrow.Then they should follow this up with sweeping reforms to healthcare(Medicade & Medicare) and social security.The number of federal departments needs to fall as some budgets end altogether.Under the House leadership plan federal debt rises by $7 trillion and if Obama had been left to his own devices it would have risen by $9 trillion.

They should make that $1 trillion cut now and follow it up with another $5 trillion over ten years.This would mean making permanent the Bush tax cuts (cost $1 trillion) and attacking the deficit by $5 trillion.

A simple hard to evade US VAT could come in to replace revenue from ending Capital Gains Tax,dividends tax,federal corporate income tax,tax on money brought home by business from overseas,Estates Duty and a cut in payroll tax designed to cut employment costs.By doing this you tax consumption more and make productive investment pay.That rebalances the economy away from debt fuelled consumption and gets the US back towards investment in job creation.By creating stability,simplifying taxation and mending the fiscal mess you would boost confidence and that could get a recovery going.A simple pro-investment tax system 100% likely to stay that way would get people with ideas and people with money to link up thus generating new products in response to demand.That is a revenue neutral way of cutting the cost of complex taxation and so means no tax hikes.Keeping the Bush tax cuts avoids a $1 trillion blow to the recovery.

We need proper conservative reform to rescue the US ASAP !

Ockamrazor

Go newbies go, go, go. We are never going to get a new beginning with the old guard, we are going to have to clean house and elect ALL freshman congressmen. McConnell is NOT on our side. Someone like DeMint, Rand Paul can stay, but the Republicans that want to play ball and make nice with the Democrats have got to go. We need those that do not care about making Congress a career.

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