Minnesota’s http://www.twincities.com/opinion/ci_9436854 posted an article by Paul Mulshine of The Star-Ledger of Newark, New Jersey on Saturday. It correctly pointed up the impending entitlement crisis and then missed the point in asserting that The Fair Tax that Huckabee supports will not fix it, calling it, “the real bridge to nowhere.” Here is the article and the response I left at the site.
So there's your real bridge to nowhere
By Paul Mulshine
Article Last Updated: 05/31/2008 04:24:03 PM CDT
Want to know what I never want to hear about again? The bridge to nowhere, that's what. Throughout this primary election season, which limps to a merciful end Tuesday, I have heard politicians pontificating about how they oppose building that bridge in Alaska.
I would much prefer to hear the pols talk about the one issue that looms above all others in terms of importance. Try to guess what it is. It's not the Iraq war. It's not the price of gas. It's not abortion, guns or gay marriage.
Give up? The biggest issue facing the next president of the United States is that the country is broke. Or at least it would be if it were a business. The accumulated debt of the United States exceeds its revenue by so much that if it were a corporation, the federal government would be in bankruptcy court.
You won't hear about this from politicians for one simple reason: Most of that debt is for programs promised to current and future retirees. Social Security and Medicare are too popular to cut. But they're too expensive to fund. So politicians ignore the problem.
Accountants worry about it, however. If you understand numbers, as Sheila Weinberg does, then you understand that the country is on its way to becoming a banana republic, a place where you need a knapsack just to carry currency. In Latin America years ago, I once visited such a country. I needed an inch-thick pile of bills just to buy breakfast, and breakfast cost only 75 cents in American money.
I don't want my kids to inherit such an economy. Weinberg feels the same about her kids. That's why she got involved with the Institute for Truth in Accounting, an Illinois-based group that would like to see government at all levels adopt "accrual accounting" as the heart of its budget process.
In traditional government accounting, politicians can promise endless future benefits while paying only a tiny portion upfront. But in accrual accounting, the pols would have to put aside enough money in a trust fund immediately to cover future promises.
If the U.S. had followed that system, the trust fund for Social Security and Medicare would need an immediate infusion of $54 trillion, Weinberg said. That's a lot of dough.
We ran up this debt because pols of both parties voted for popular programs without raising taxes to cover them. A classic was that prescription drug program adopted in the first term of the Bush administration.
"When they passed the prescription drug program, they should have sent a bill for $25,000 to every American," says Weinberg. "They should have asked, 'Do you want that? Then you need to send a check for $25,000 to start funding it.' "
Instead, the pols just added another $8 trillion in unfunded liability to a Medicare system that was already in the red.
But imagine for a second that the pols faced this problem honestly and decided to raise revenue to pay for their promises. How much would taxes have to rise?
The Congressional Budget Office was recently asked that question by Rep. Paul Ryan, a Republican from Wisconsin who is one of the few politicians willing to talk about the problem. In a letter to Ryan last month, the CBO said the income tax would have to more than double to offset entitlement expenses. That would mean the tax rate on income now in the 25 percent bracket — where many middle-class Americans find themselves — would rise to a staggering 63 percent. The top rate would have to rise from 35 percent to 83 percent.
To look at it another way, consider this in terms of GOP presidential contender Mike Huckabee's so-called "fair tax," a national sales tax of about 23 percent. Candidate Huckabee proposed that tax as a substitute for the income tax. But to balance the budget honestly, a President Huckabee would need to impose that big sales tax while also keeping the income tax.
Try to imagine Huckabee — or Hillary Clinton or Barack Obama or John McCain, for that matter — proposing such a huge tax hike. That's about as likely as any one of them proposing that we end Social Security and Medicare.
This is one area where the true spirit of bipartisanship reigns supreme. Both parties want to pass this problem to the next generation. So there's your real bridge to nowhere. And every young person in America is going to have to cross it.
Paul Mulshine is a columnist for the Star-Ledger of Newark, N.J. His e-mail address is pmulshine@hotmail.com.
----------------------------------------------------------------------------------------------------------------------------------
I would describe myself as primarily pro-life, in that I think that the establishment and adoption of disrespect for the foundational respect for life signals the onset of a progressive decline of civil society. However, it is quite correct that the onslaught of entitlement liabilities that are now at hand, represent imminent economic calamity. And, I am amazed at how little (in fact none, that I can see) attention is being paid to this matter in this election season. It doesn't take a genius to see this tsunami, the leading curl of which we are now perched directly below. Any serious candidate must be aware of the crisis that the new president will face.
I assume that a Democratic president will just blame Bush for it to justify the necessity to do all three short-term supposed solutions: dramatically raise taxes, cut and/or ration benefits, and hyper-inflate the dollar, al of which in the big picture will actually exacerbate the problem and probably be followed by a more dramatic socialization of the economy. This would be called "soaking the wealthy corporations, but in fact will be a bon to established corporations, imposing taxes and regulations that they can afford, but potential competition cannot. That is what socialism is: the alliance of big business and government.
McCain probably sees this impending threat, but knows it would be politically treacherous to talk about. But at least he is assertive about the urgent need to curtail extravagant spending, which is why Tom Coburn, the most conservative US Senator supports him enthusiastically, despite McCain's other conservative incoherencies. And, so do I, though I assertively opposed McCain in 2000 and voted 3rd party in 2000 and 2004.
And, The Fair Tax is the only way to ease, even if it doesn't totally avert the crisis. And, not because a calculation of revenue based on current economic activity will solve the problem. In fact, the very suggestion is absurd: other things being equal, the change is supposed to be revenue neutral. But, it is expected that other things will not be equal: the change will bring a surge in revenue from both new economic activity and previously untaxed activity.
Is The Fair Tax the complete solution to the problem? It probably will not, because the problem is so unbelievably huge. Bit in fact, it is an essential start to addressing the problem: if The Fair Tax doesn't "cure" it, no other possible course will even make a tiny ding in the problem.
Showing posts with label Fair Tax. Show all posts
Showing posts with label Fair Tax. Show all posts
Sunday, June 1, 2008
Published Shot At Fair Tax Finds Only Air
Minnesota’s http://www.twincities.com/opinion/ci_9436854 posted an article by Paul Mulshine of The Star-Ledger of Newark, New Jersey on Saturday. It correctly pointed up the impending entitlement crisis and then missed the point in asserting that The Fair Tax that Huckabee supports will not fix it, calling it, “the real bridge to nowhere.” Here is the article and the response I left at the site.
So there's your real bridge to nowhere
By Paul Mulshine
Article Last Updated: 05/31/2008 04:24:03 PM CDT
Want to know what I never want to hear about again? The bridge to nowhere, that's what. Throughout this primary election season, which limps to a merciful end Tuesday, I have heard politicians pontificating about how they oppose building that bridge in Alaska.
I would much prefer to hear the pols talk about the one issue that looms above all others in terms of importance. Try to guess what it is. It's not the Iraq war. It's not the price of gas. It's not abortion, guns or gay marriage.
Give up? The biggest issue facing the next president of the United States is that the country is broke. Or at least it would be if it were a business. The accumulated debt of the United States exceeds its revenue by so much that if it were a corporation, the federal government would be in bankruptcy court.
You won't hear about this from politicians for one simple reason: Most of that debt is for programs promised to current and future retirees. Social Security and Medicare are too popular to cut. But they're too expensive to fund. So politicians ignore the problem.
Accountants worry about it, however. If you understand numbers, as Sheila Weinberg does, then you understand that the country is on its way to becoming a banana republic, a place where you need a knapsack just to carry currency. In Latin America years ago, I once visited such a country. I needed an inch-thick pile of bills just to buy breakfast, and breakfast cost only 75 cents in American money.
I don't want my kids to inherit such an economy. Weinberg feels the same about her kids. That's why she got involved with the Institute for Truth in Accounting, an Illinois-based group that would like to see government at all levels adopt "accrual accounting" as the heart of its budget process.
In traditional government accounting, politicians can promise endless future benefits while paying only a tiny portion upfront. But in accrual accounting, the pols would have to put aside enough money in a trust fund immediately to cover future promises.
If the U.S. had followed that system, the trust fund for Social Security and Medicare would need an immediate infusion of $54 trillion, Weinberg said. That's a lot of dough.
We ran up this debt because pols of both parties voted for popular programs without raising taxes to cover them. A classic was that prescription drug program adopted in the first term of the Bush administration.
"When they passed the prescription drug program, they should have sent a bill for $25,000 to every American," says Weinberg. "They should have asked, 'Do you want that? Then you need to send a check for $25,000 to start funding it.' "
Instead, the pols just added another $8 trillion in unfunded liability to a Medicare system that was already in the red.
But imagine for a second that the pols faced this problem honestly and decided to raise revenue to pay for their promises. How much would taxes have to rise?
The Congressional Budget Office was recently asked that question by Rep. Paul Ryan, a Republican from Wisconsin who is one of the few politicians willing to talk about the problem. In a letter to Ryan last month, the CBO said the income tax would have to more than double to offset entitlement expenses. That would mean the tax rate on income now in the 25 percent bracket — where many middle-class Americans find themselves — would rise to a staggering 63 percent. The top rate would have to rise from 35 percent to 83 percent.
To look at it another way, consider this in terms of GOP presidential contender Mike Huckabee's so-called "fair tax," a national sales tax of about 23 percent. Candidate Huckabee proposed that tax as a substitute for the income tax. But to balance the budget honestly, a President Huckabee would need to impose that big sales tax while also keeping the income tax.
Try to imagine Huckabee — or Hillary Clinton or Barack Obama or John McCain, for that matter — proposing such a huge tax hike. That's about as likely as any one of them proposing that we end Social Security and Medicare.
This is one area where the true spirit of bipartisanship reigns supreme. Both parties want to pass this problem to the next generation. So there's your real bridge to nowhere. And every young person in America is going to have to cross it.
Paul Mulshine is a columnist for the Star-Ledger of Newark, N.J. His e-mail address is pmulshine@hotmail.com.
----------------------------------------------------------------------------------------------------------------------------------
I would describe myself as primarily pro-life, in that I think that the establishment and adoption of disrespect for the foundational respect for life signals the onset of a progressive decline of civil society. However, it is quite correct that the onslaught of entitlement liabilities that are now at hand, represent imminent economic calamity. And, I am amazed at how little (in fact none, that I can see) attention is being paid to this matter in this election season. It doesn't take a genius to see this tsunami, the leading curl of which we are now perched directly below. Any serious candidate must be aware of the crisis that the new president will face.
I assume that a Democratic president will just blame Bush for it to justify the necessity to do all three short-term supposed solutions: dramatically raise taxes, cut and/or ration benefits, and hyper-inflate the dollar, al of which in the big picture will actually exaccerbate the problem and probably be followed by a more dramatic socialization of the economy. This would be called "soaking the wealthy corporations, but in fact will be a bon to established corporations, imposing taxes and regulations that they can afford, but potential competition cannot. That is what socialism is: the alliance of big business and government.
McCain probably sees this impending threat, but knows it would be politically treacherous to talk about. But at least he is assertive about the urgent need to curtail extravagant spending, which is why Tom Coburn, the most conservative US Senator supports him enthusiastically, despite McCain's other conservative incoherencies. And, so do I, though I assertively opposed McCain in 2000 and voted 3rd party in 2000 and 2004.
And, The Fair Tax is the only way to ease, even if it doesn't totally avert the crisis. And, not because a calculation of revenue based on current economic activity will solve the problem. In fact, the very suggestion is absurd: other things being equal, the change is supposed to be revenue neutral. But, it is expected that other things will not be equal: the change will bring a surge in revenue from both new economic activity and previously untaxed activity.
Is The Fair Tax the complete solution to the problem? It probably will not, because the problem is so unbelievably huge. Bit in fact, it is an essential start to addressing the problem: if The Fair Tax doesn't "cure" it, no other possible course will even make a tiny ding in the problem.
So there's your real bridge to nowhere
By Paul Mulshine
Article Last Updated: 05/31/2008 04:24:03 PM CDT
Want to know what I never want to hear about again? The bridge to nowhere, that's what. Throughout this primary election season, which limps to a merciful end Tuesday, I have heard politicians pontificating about how they oppose building that bridge in Alaska.
I would much prefer to hear the pols talk about the one issue that looms above all others in terms of importance. Try to guess what it is. It's not the Iraq war. It's not the price of gas. It's not abortion, guns or gay marriage.
Give up? The biggest issue facing the next president of the United States is that the country is broke. Or at least it would be if it were a business. The accumulated debt of the United States exceeds its revenue by so much that if it were a corporation, the federal government would be in bankruptcy court.
You won't hear about this from politicians for one simple reason: Most of that debt is for programs promised to current and future retirees. Social Security and Medicare are too popular to cut. But they're too expensive to fund. So politicians ignore the problem.
Accountants worry about it, however. If you understand numbers, as Sheila Weinberg does, then you understand that the country is on its way to becoming a banana republic, a place where you need a knapsack just to carry currency. In Latin America years ago, I once visited such a country. I needed an inch-thick pile of bills just to buy breakfast, and breakfast cost only 75 cents in American money.
I don't want my kids to inherit such an economy. Weinberg feels the same about her kids. That's why she got involved with the Institute for Truth in Accounting, an Illinois-based group that would like to see government at all levels adopt "accrual accounting" as the heart of its budget process.
In traditional government accounting, politicians can promise endless future benefits while paying only a tiny portion upfront. But in accrual accounting, the pols would have to put aside enough money in a trust fund immediately to cover future promises.
If the U.S. had followed that system, the trust fund for Social Security and Medicare would need an immediate infusion of $54 trillion, Weinberg said. That's a lot of dough.
We ran up this debt because pols of both parties voted for popular programs without raising taxes to cover them. A classic was that prescription drug program adopted in the first term of the Bush administration.
"When they passed the prescription drug program, they should have sent a bill for $25,000 to every American," says Weinberg. "They should have asked, 'Do you want that? Then you need to send a check for $25,000 to start funding it.' "
Instead, the pols just added another $8 trillion in unfunded liability to a Medicare system that was already in the red.
But imagine for a second that the pols faced this problem honestly and decided to raise revenue to pay for their promises. How much would taxes have to rise?
The Congressional Budget Office was recently asked that question by Rep. Paul Ryan, a Republican from Wisconsin who is one of the few politicians willing to talk about the problem. In a letter to Ryan last month, the CBO said the income tax would have to more than double to offset entitlement expenses. That would mean the tax rate on income now in the 25 percent bracket — where many middle-class Americans find themselves — would rise to a staggering 63 percent. The top rate would have to rise from 35 percent to 83 percent.
To look at it another way, consider this in terms of GOP presidential contender Mike Huckabee's so-called "fair tax," a national sales tax of about 23 percent. Candidate Huckabee proposed that tax as a substitute for the income tax. But to balance the budget honestly, a President Huckabee would need to impose that big sales tax while also keeping the income tax.
Try to imagine Huckabee — or Hillary Clinton or Barack Obama or John McCain, for that matter — proposing such a huge tax hike. That's about as likely as any one of them proposing that we end Social Security and Medicare.
This is one area where the true spirit of bipartisanship reigns supreme. Both parties want to pass this problem to the next generation. So there's your real bridge to nowhere. And every young person in America is going to have to cross it.
Paul Mulshine is a columnist for the Star-Ledger of Newark, N.J. His e-mail address is pmulshine@hotmail.com.
----------------------------------------------------------------------------------------------------------------------------------
I would describe myself as primarily pro-life, in that I think that the establishment and adoption of disrespect for the foundational respect for life signals the onset of a progressive decline of civil society. However, it is quite correct that the onslaught of entitlement liabilities that are now at hand, represent imminent economic calamity. And, I am amazed at how little (in fact none, that I can see) attention is being paid to this matter in this election season. It doesn't take a genius to see this tsunami, the leading curl of which we are now perched directly below. Any serious candidate must be aware of the crisis that the new president will face.
I assume that a Democratic president will just blame Bush for it to justify the necessity to do all three short-term supposed solutions: dramatically raise taxes, cut and/or ration benefits, and hyper-inflate the dollar, al of which in the big picture will actually exaccerbate the problem and probably be followed by a more dramatic socialization of the economy. This would be called "soaking the wealthy corporations, but in fact will be a bon to established corporations, imposing taxes and regulations that they can afford, but potential competition cannot. That is what socialism is: the alliance of big business and government.
McCain probably sees this impending threat, but knows it would be politically treacherous to talk about. But at least he is assertive about the urgent need to curtail extravagant spending, which is why Tom Coburn, the most conservative US Senator supports him enthusiastically, despite McCain's other conservative incoherencies. And, so do I, though I assertively opposed McCain in 2000 and voted 3rd party in 2000 and 2004.
And, The Fair Tax is the only way to ease, even if it doesn't totally avert the crisis. And, not because a calculation of revenue based on current economic activity will solve the problem. In fact, the very suggestion is absurd: other things being equal, the change is supposed to be revenue neutral. But, it is expected that other things will not be equal: the change will bring a surge in revenue from both new economic activity and previously untaxed activity.
Is The Fair Tax the complete solution to the problem? It probably will not, because the problem is so unbelievably huge. Bit in fact, it is an essential start to addressing the problem: if The Fair Tax doesn't "cure" it, no other possible course will even make a tiny ding in the problem.
Published Shot At Fair Tax Finds Only Air
Minnesota’s http://www.twincities.com/opinion/ci_9436854 posted an article by Paul Mulshine of The Star-Ledger of Newark, New Jersey on Saturday. It correctly pointed up the impending entitlement crisis and then missed the point in asserting that The Fair Tax that Huckabee supports will not fix it, calling it, “the real bridge to nowhere.” Here is the article and the response I left at the site.
So there's your real bridge to nowhere
By Paul Mulshine
Article Last Updated: 05/31/2008 04:24:03 PM CDT
Want to know what I never want to hear about again? The bridge to nowhere, that's what. Throughout this primary election season, which limps to a merciful end Tuesday, I have heard politicians pontificating about how they oppose building that bridge in Alaska.
I would much prefer to hear the pols talk about the one issue that looms above all others in terms of importance. Try to guess what it is. It's not the Iraq war. It's not the price of gas. It's not abortion, guns or gay marriage.
Give up? The biggest issue facing the next president of the United States is that the country is broke. Or at least it would be if it were a business. The accumulated debt of the United States exceeds its revenue by so much that if it were a corporation, the federal government would be in bankruptcy court.
You won't hear about this from politicians for one simple reason: Most of that debt is for programs promised to current and future retirees. Social Security and Medicare are too popular to cut. But they're too expensive to fund. So politicians ignore the problem.
Accountants worry about it, however. If you understand numbers, as Sheila Weinberg does, then you understand that the country is on its way to becoming a banana republic, a place where you need a knapsack just to carry currency. In Latin America years ago, I once visited such a country. I needed an inch-thick pile of bills just to buy breakfast, and breakfast cost only 75 cents in American money.
I don't want my kids to inherit such an economy. Weinberg feels the same about her kids. That's why she got involved with the Institute for Truth in Accounting, an Illinois-based group that would like to see government at all levels adopt "accrual accounting" as the heart of its budget process.
In traditional government accounting, politicians can promise endless future benefits while paying only a tiny portion upfront. But in accrual accounting, the pols would have to put aside enough money in a trust fund immediately to cover future promises.
If the U.S. had followed that system, the trust fund for Social Security and Medicare would need an immediate infusion of $54 trillion, Weinberg said. That's a lot of dough.
We ran up this debt because pols of both parties voted for popular programs without raising taxes to cover them. A classic was that prescription drug program adopted in the first term of the Bush administration.
"When they passed the prescription drug program, they should have sent a bill for $25,000 to every American," says Weinberg. "They should have asked, 'Do you want that? Then you need to send a check for $25,000 to start funding it.' "
Instead, the pols just added another $8 trillion in unfunded liability to a Medicare system that was already in the red.
But imagine for a second that the pols faced this problem honestly and decided to raise revenue to pay for their promises. How much would taxes have to rise?
The Congressional Budget Office was recently asked that question by Rep. Paul Ryan, a Republican from Wisconsin who is one of the few politicians willing to talk about the problem. In a letter to Ryan last month, the CBO said the income tax would have to more than double to offset entitlement expenses. That would mean the tax rate on income now in the 25 percent bracket — where many middle-class Americans find themselves — would rise to a staggering 63 percent. The top rate would have to rise from 35 percent to 83 percent.
To look at it another way, consider this in terms of GOP presidential contender Mike Huckabee's so-called "fair tax," a national sales tax of about 23 percent. Candidate Huckabee proposed that tax as a substitute for the income tax. But to balance the budget honestly, a President Huckabee would need to impose that big sales tax while also keeping the income tax.
Try to imagine Huckabee — or Hillary Clinton or Barack Obama or John McCain, for that matter — proposing such a huge tax hike. That's about as likely as any one of them proposing that we end Social Security and Medicare.
This is one area where the true spirit of bipartisanship reigns supreme. Both parties want to pass this problem to the next generation. So there's your real bridge to nowhere. And every young person in America is going to have to cross it.
Paul Mulshine is a columnist for the Star-Ledger of Newark, N.J. His e-mail address is pmulshine@hotmail.com.
----------------------------------------------------------------------------------------------------------------------------------
I would describe myself as primarily pro-life, in that I think that the establishment and adoption of disrespect for the foundational respect for life signals the onset of a progressive decline of civil society. However, it is quite correct that the onslaught of entitlement liabilities that are now at hand, represent imminent economic calamity. And, I am amazed at how little (in fact none, that I can see) attention is being paid to this matter in this election season. It doesn't take a genius to see this tsunami, the leading curl of which we are now perched directly below. Any serious candidate must be aware of the crisis that the new president will face.
I assume that a Democratic president will just blame Bush for it to justify the necessity to do all three short-term supposed solutions: dramatically raise taxes, cut and/or ration benefits, and hyper-inflate the dollar, al of which in the big picture will actually exaccerbate the problem and probably be followed by a more dramatic socialization of the economy. This would be called "soaking the wealthy corporations, but in fact will be a bon to established corporations, imposing taxes and regulations that they can afford, but potential competition cannot. That is what socialism is: the alliance of big business and government.
McCain probably sees this impending threat, but knows it would be politically treacherous to talk about. But at least he is assertive about the urgent need to curtail extravagant spending, which is why Tom Coburn, the most conservative US Senator supports him enthusiastically, despite McCain's other conservative incoherencies. And so do I, though I assertively opposed McCain in 2000 and voted 3rd party in 2000 and 2004.
And, The Fair Tax is the only way to ease, even if it doesn't totally avert the crisis. And, not because a calculation of revenue based on current economic activity will solve the problem. In fact, the very suggestion is absurd: other things being equal, the change is supposed to be revenue neutral. But, it is expected that other things will not be equal: the change will bring a surge in revenue from both new economic activity and previously untaxed activity.
Is The Fair Tax the complete solution to the problem? It probably will not, because the problem is so unbelievably huge. Bit in fact, it is an essential start to addressing the problem: if The Fair Tax doesn't "cure" it, no other possible course will even make a tiny ding in the problem.
So there's your real bridge to nowhere
By Paul Mulshine
Article Last Updated: 05/31/2008 04:24:03 PM CDT
Want to know what I never want to hear about again? The bridge to nowhere, that's what. Throughout this primary election season, which limps to a merciful end Tuesday, I have heard politicians pontificating about how they oppose building that bridge in Alaska.
I would much prefer to hear the pols talk about the one issue that looms above all others in terms of importance. Try to guess what it is. It's not the Iraq war. It's not the price of gas. It's not abortion, guns or gay marriage.
Give up? The biggest issue facing the next president of the United States is that the country is broke. Or at least it would be if it were a business. The accumulated debt of the United States exceeds its revenue by so much that if it were a corporation, the federal government would be in bankruptcy court.
You won't hear about this from politicians for one simple reason: Most of that debt is for programs promised to current and future retirees. Social Security and Medicare are too popular to cut. But they're too expensive to fund. So politicians ignore the problem.
Accountants worry about it, however. If you understand numbers, as Sheila Weinberg does, then you understand that the country is on its way to becoming a banana republic, a place where you need a knapsack just to carry currency. In Latin America years ago, I once visited such a country. I needed an inch-thick pile of bills just to buy breakfast, and breakfast cost only 75 cents in American money.
I don't want my kids to inherit such an economy. Weinberg feels the same about her kids. That's why she got involved with the Institute for Truth in Accounting, an Illinois-based group that would like to see government at all levels adopt "accrual accounting" as the heart of its budget process.
In traditional government accounting, politicians can promise endless future benefits while paying only a tiny portion upfront. But in accrual accounting, the pols would have to put aside enough money in a trust fund immediately to cover future promises.
If the U.S. had followed that system, the trust fund for Social Security and Medicare would need an immediate infusion of $54 trillion, Weinberg said. That's a lot of dough.
We ran up this debt because pols of both parties voted for popular programs without raising taxes to cover them. A classic was that prescription drug program adopted in the first term of the Bush administration.
"When they passed the prescription drug program, they should have sent a bill for $25,000 to every American," says Weinberg. "They should have asked, 'Do you want that? Then you need to send a check for $25,000 to start funding it.' "
Instead, the pols just added another $8 trillion in unfunded liability to a Medicare system that was already in the red.
But imagine for a second that the pols faced this problem honestly and decided to raise revenue to pay for their promises. How much would taxes have to rise?
The Congressional Budget Office was recently asked that question by Rep. Paul Ryan, a Republican from Wisconsin who is one of the few politicians willing to talk about the problem. In a letter to Ryan last month, the CBO said the income tax would have to more than double to offset entitlement expenses. That would mean the tax rate on income now in the 25 percent bracket — where many middle-class Americans find themselves — would rise to a staggering 63 percent. The top rate would have to rise from 35 percent to 83 percent.
To look at it another way, consider this in terms of GOP presidential contender Mike Huckabee's so-called "fair tax," a national sales tax of about 23 percent. Candidate Huckabee proposed that tax as a substitute for the income tax. But to balance the budget honestly, a President Huckabee would need to impose that big sales tax while also keeping the income tax.
Try to imagine Huckabee — or Hillary Clinton or Barack Obama or John McCain, for that matter — proposing such a huge tax hike. That's about as likely as any one of them proposing that we end Social Security and Medicare.
This is one area where the true spirit of bipartisanship reigns supreme. Both parties want to pass this problem to the next generation. So there's your real bridge to nowhere. And every young person in America is going to have to cross it.
Paul Mulshine is a columnist for the Star-Ledger of Newark, N.J. His e-mail address is pmulshine@hotmail.com.
----------------------------------------------------------------------------------------------------------------------------------
I would describe myself as primarily pro-life, in that I think that the establishment and adoption of disrespect for the foundational respect for life signals the onset of a progressive decline of civil society. However, it is quite correct that the onslaught of entitlement liabilities that are now at hand, represent imminent economic calamity. And, I am amazed at how little (in fact none, that I can see) attention is being paid to this matter in this election season. It doesn't take a genius to see this tsunami, the leading curl of which we are now perched directly below. Any serious candidate must be aware of the crisis that the new president will face.
I assume that a Democratic president will just blame Bush for it to justify the necessity to do all three short-term supposed solutions: dramatically raise taxes, cut and/or ration benefits, and hyper-inflate the dollar, al of which in the big picture will actually exaccerbate the problem and probably be followed by a more dramatic socialization of the economy. This would be called "soaking the wealthy corporations, but in fact will be a bon to established corporations, imposing taxes and regulations that they can afford, but potential competition cannot. That is what socialism is: the alliance of big business and government.
McCain probably sees this impending threat, but knows it would be politically treacherous to talk about. But at least he is assertive about the urgent need to curtail extravagant spending, which is why Tom Coburn, the most conservative US Senator supports him enthusiastically, despite McCain's other conservative incoherencies. And so do I, though I assertively opposed McCain in 2000 and voted 3rd party in 2000 and 2004.
And, The Fair Tax is the only way to ease, even if it doesn't totally avert the crisis. And, not because a calculation of revenue based on current economic activity will solve the problem. In fact, the very suggestion is absurd: other things being equal, the change is supposed to be revenue neutral. But, it is expected that other things will not be equal: the change will bring a surge in revenue from both new economic activity and previously untaxed activity.
Is The Fair Tax the complete solution to the problem? It probably will not, because the problem is so unbelievably huge. Bit in fact, it is an essential start to addressing the problem: if The Fair Tax doesn't "cure" it, no other possible course will even make a tiny ding in the problem.
Wednesday, April 2, 2008
Support The Fair Tax And Sign This Fair Tax Petition...PLEASE!
Support The Fair Tax And Sign This Fair Tax Petition...PLEASE!
http://www.fairtax.org/site/PageServer?pagename=changedc
I want to start writing some personal thoughts about my own situation and things I have strong convictions about. But, one thing I have talked and will talk about is The Fair Tax. Mike Huckabee made that a significant issue in his campaign. Many Huckabee supporters got involved in the Republican political process, for the first time. And, in my precinct, that of everyone else I talked to, and my subsequent Senatorial District Convention, there were Fair Tax Resolutions, and I’m sure the issue will appear at the state convention. Mike Huckabee was correct that it presents a huge simplification, balance across income of the federal tax system, and also taxes heretofore “underground” elements of the American economy like drug dealers, prostitutes, illegal aliens, and miscellaneous criminals who do not file, but do and must buy things. And, he also correctly and consistently stated that The Fair Tax would bring a great surge of investment and economic activity to The United States.
However, he should have more starkly linked that surge of economic activity to the fast-closing crisis of America’s inability to meet the mountain of entitlement liability that the federal government has taken on. Only such a dramatic change as The Fair Tax poses any possibility of meeting these liabilities without a titanic and, frankly crippling combination of tax increases, benefit cuts, and monetary inflation. Unless we move with great dispatch to promote economic expansion and the consequent revenue increase, probably all of these band-aids will be applied, and soon. And yes, they will be crippling, bringing great economic and physical suffering, as shortsighted liberal solutions almost inherently do. I’m sending/posting this because today I received an email from The Fair Tax organization, encouraging me to send the message below to encourage others to sign a Fair Tax petition to be presented to Congress, as I have:
If you haven’t any questions about how The Fair Tax would work or about possible problems, email me and I’ll tell you the potential problems I see. But simply put, those problems are infinitely smaller than the ones we now face.
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Hello,
With April 15th drawing near the folks at Americans for Fair Taxation (FairTax.org) are gathering 100,000 names for a "Pass the FairTax" petition to send a powerful message to Congress this Tax Day.
I just signed the petition at www.changedc.org and would encourage you to do the same.
The FairTax petition makes a powerful statement to Congress: It says there is a better way than the current income tax system with its 67,500 pages of cumbersome tax rules and regulations for which individuals and businesses spend $265 billion annually on filing and compliance. It's called the FairTax and it promises to unleash the American economy especially during these difficult times, and unshackle us, the American taxpayers, from yearly nightmare that is April 15th.
If you're not already familiar with the FairTax, here are the basics:
The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including:
• A progressive national retail sales tax.
• A prebate to ensure no American pays federal taxes on spending up to the poverty level.
• Dollar-for-dollar federal revenue neutrality.
• Repeal of the 16th Amendment through companion legislation.
Just imagine...bringing home your entire paycheck AND never having to file a tax return again! It's not a dream. It's called the FairTax, and you can help make it a reality.
If this sounds interesting, you can learn more at www.fairtax.org, and sign the "Pass the FairTax" petition there as well
http://www.fairtax.org/site/PageServer?pagename=changedc
I want to start writing some personal thoughts about my own situation and things I have strong convictions about. But, one thing I have talked and will talk about is The Fair Tax. Mike Huckabee made that a significant issue in his campaign. Many Huckabee supporters got involved in the Republican political process, for the first time. And, in my precinct, that of everyone else I talked to, and my subsequent Senatorial District Convention, there were Fair Tax Resolutions, and I’m sure the issue will appear at the state convention. Mike Huckabee was correct that it presents a huge simplification, balance across income of the federal tax system, and also taxes heretofore “underground” elements of the American economy like drug dealers, prostitutes, illegal aliens, and miscellaneous criminals who do not file, but do and must buy things. And, he also correctly and consistently stated that The Fair Tax would bring a great surge of investment and economic activity to The United States.
However, he should have more starkly linked that surge of economic activity to the fast-closing crisis of America’s inability to meet the mountain of entitlement liability that the federal government has taken on. Only such a dramatic change as The Fair Tax poses any possibility of meeting these liabilities without a titanic and, frankly crippling combination of tax increases, benefit cuts, and monetary inflation. Unless we move with great dispatch to promote economic expansion and the consequent revenue increase, probably all of these band-aids will be applied, and soon. And yes, they will be crippling, bringing great economic and physical suffering, as shortsighted liberal solutions almost inherently do. I’m sending/posting this because today I received an email from The Fair Tax organization, encouraging me to send the message below to encourage others to sign a Fair Tax petition to be presented to Congress, as I have:
If you haven’t any questions about how The Fair Tax would work or about possible problems, email me and I’ll tell you the potential problems I see. But simply put, those problems are infinitely smaller than the ones we now face.
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Hello,
With April 15th drawing near the folks at Americans for Fair Taxation (FairTax.org) are gathering 100,000 names for a "Pass the FairTax" petition to send a powerful message to Congress this Tax Day.
I just signed the petition at www.changedc.org and would encourage you to do the same.
The FairTax petition makes a powerful statement to Congress: It says there is a better way than the current income tax system with its 67,500 pages of cumbersome tax rules and regulations for which individuals and businesses spend $265 billion annually on filing and compliance. It's called the FairTax and it promises to unleash the American economy especially during these difficult times, and unshackle us, the American taxpayers, from yearly nightmare that is April 15th.
If you're not already familiar with the FairTax, here are the basics:
The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including:
• A progressive national retail sales tax.
• A prebate to ensure no American pays federal taxes on spending up to the poverty level.
• Dollar-for-dollar federal revenue neutrality.
• Repeal of the 16th Amendment through companion legislation.
Just imagine...bringing home your entire paycheck AND never having to file a tax return again! It's not a dream. It's called the FairTax, and you can help make it a reality.
If this sounds interesting, you can learn more at www.fairtax.org, and sign the "Pass the FairTax" petition there as well
Tuesday, April 1, 2008
Support The Fait Tax And Sign This Fair Tax Petition...PLEASE!
Support The Fait Tax And Sign This Fair Tax Petition...PLEASE!
http://www.fairtax.org/site/PageServer?pagename=changedc
I want to start writing some personal thoughts about my own situation and things I have strong convictions about. But, one thing I have talked and will talk about is The Fair Tax. Mike Huckabee made that a significant issue in his campaign. Many Huckabee supporters got involved in the Republican political process, for the first time. And, in my precinct, that of everyone else I talked to, and my subsequent Senatorial District Convention, there were Fair Tax Resolutions, and I’m sure the issue will appear at the state convention. Mike Huckabee was correct that it presents a huge simplification, balance across income of the federal tax system, and also taxes heretofore “underground” elements of the American economy like drug dealers, prostitutes, illegal aliens, and miscellaneous criminals who do not file, but do and must buy things. And, he also correctly and consistently stated that The Fair Tax would bring a great surge of investment and economic activity to The United States.
However, he should have more starkly linked that surge of economic activity to the fast-closing crisis of America’s inability to meet the mountain of entitlement liability that the federal government has taken on. Only such a dramatic change as The Fair Tax poses any possibility of meeting these liabilities without a titanic and, frankly crippling combination of tax increases, benefit cuts, and monetary inflation. Unless we move with great dispatch to promote economic expansion and the consequent revenue increase, probably all of these band-aids will be applied, and soon. And yes, they will be crippling, bringing great economic and physical suffering, as shortsighted liberal solutions almost inherently do. I’m sending/posting this because today I received an email from The Fair Tax organization, encouraging me to send the message below to encourage others to sign a Fair Tax petition to be presented to Congress, as I have:
If you haven’t any questions about how The Fair Tax would work or about possible problems, email me and I’ll tell you the potential problems I see. But simply put, those problems are infinitely smaller than the ones we now face.
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Hello,
With April 15th drawing near the folks at Americans for Fair Taxation (FairTax.org) are gathering 100,000 names for a "Pass the FairTax" petition to send a powerful message to Congress this Tax Day.
I just signed the petition at www.changedc.org and would encourage you to do the same.
The FairTax petition makes a powerful statement to Congress: It says there is a better way than the current income tax system with its 67,500 pages of cumbersome tax rules and regulations for which individuals and businesses spend $265 billion annually on filing and compliance. It's called the FairTax and it promises to unleash the American economy especially during these difficult times, and unshackle us, the American taxpayers, from yearly nightmare that is April 15th.
If you're not already familiar with the FairTax, here are the basics:
The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including:
• A progressive national retail sales tax.
• A prebate to ensure no American pays federal taxes on spending up to the poverty level.
• Dollar-for-dollar federal revenue neutrality.
• Repeal of the 16th Amendment through companion legislation.
Just imagine...bringing home your entire paycheck AND never having to file a tax return again! It's not a dream. It's called the FairTax, and you can help make it a reality.
If this sounds interesting, you can learn more at www.fairtax.org, and sign the "Pass the FairTax" petition there as well
http://www.fairtax.org/site/PageServer?pagename=changedc
I want to start writing some personal thoughts about my own situation and things I have strong convictions about. But, one thing I have talked and will talk about is The Fair Tax. Mike Huckabee made that a significant issue in his campaign. Many Huckabee supporters got involved in the Republican political process, for the first time. And, in my precinct, that of everyone else I talked to, and my subsequent Senatorial District Convention, there were Fair Tax Resolutions, and I’m sure the issue will appear at the state convention. Mike Huckabee was correct that it presents a huge simplification, balance across income of the federal tax system, and also taxes heretofore “underground” elements of the American economy like drug dealers, prostitutes, illegal aliens, and miscellaneous criminals who do not file, but do and must buy things. And, he also correctly and consistently stated that The Fair Tax would bring a great surge of investment and economic activity to The United States.
However, he should have more starkly linked that surge of economic activity to the fast-closing crisis of America’s inability to meet the mountain of entitlement liability that the federal government has taken on. Only such a dramatic change as The Fair Tax poses any possibility of meeting these liabilities without a titanic and, frankly crippling combination of tax increases, benefit cuts, and monetary inflation. Unless we move with great dispatch to promote economic expansion and the consequent revenue increase, probably all of these band-aids will be applied, and soon. And yes, they will be crippling, bringing great economic and physical suffering, as shortsighted liberal solutions almost inherently do. I’m sending/posting this because today I received an email from The Fair Tax organization, encouraging me to send the message below to encourage others to sign a Fair Tax petition to be presented to Congress, as I have:
If you haven’t any questions about how The Fair Tax would work or about possible problems, email me and I’ll tell you the potential problems I see. But simply put, those problems are infinitely smaller than the ones we now face.
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Hello,
With April 15th drawing near the folks at Americans for Fair Taxation (FairTax.org) are gathering 100,000 names for a "Pass the FairTax" petition to send a powerful message to Congress this Tax Day.
I just signed the petition at www.changedc.org and would encourage you to do the same.
The FairTax petition makes a powerful statement to Congress: It says there is a better way than the current income tax system with its 67,500 pages of cumbersome tax rules and regulations for which individuals and businesses spend $265 billion annually on filing and compliance. It's called the FairTax and it promises to unleash the American economy especially during these difficult times, and unshackle us, the American taxpayers, from yearly nightmare that is April 15th.
If you're not already familiar with the FairTax, here are the basics:
The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including:
• A progressive national retail sales tax.
• A prebate to ensure no American pays federal taxes on spending up to the poverty level.
• Dollar-for-dollar federal revenue neutrality.
• Repeal of the 16th Amendment through companion legislation.
Just imagine...bringing home your entire paycheck AND never having to file a tax return again! It's not a dream. It's called the FairTax, and you can help make it a reality.
If this sounds interesting, you can learn more at www.fairtax.org, and sign the "Pass the FairTax" petition there as well
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