Sequestration in its conception was the blunt instrument that was to force the 112th Congress to act diligently to address a ballooning debt. The notion it would ever be implemented was as many stated inconceivable at least that is what current politicians say.
I tend to lend two the mixture of spending cuts and tax policy changes. I say tax policy changes because I am not for raising taxes. I am for completely revamping the tax system, at my core I would love to see our nation switch from this 100 year experiment of an Income Tax system to a national Consumption Tax System. Whenever anyone speaks of fixing our tax code they talk about, a flat rate, removing loopholes, and streamlining the code to make it easier to participate. A consumption tax does all three. I am an advocate for HR25 the FairTax and although I realize it is an uphill battle to pass this legislation battling lobbyists; I am a fighter and it is what I have signed up for.
I do realize there is much work to be done on that front and it will not in all likelihood be passed in my first term of office. So to deal with the current issue, Flatten out the tax code for corporations, removing all loopholes and credits. No more favoring one industry over another, provide certainty so we can move our economy forward. For Individuals (real people) low flat rate for all, because the rate is low minimize deductions. The key I think is making the code equitable for all, we were not founded and it is nowhere in our countries fiber to tax on a progressive rate. In essence the federal government is to provide the same basic service of safety, defense and interstate commerce infrastructure to all citizens. Article 1 section 8 of the Constitution actually states…
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defense and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States
Taxation has two key functions raise revenue and regulate economic activity. Revenue raising I believe explains itself, the economic regulator is the one that catches some off guard. By taxing less the congress allows consumers at large to have more money. More money generally speaking means people can consume more. If folks consume too much creating more demand than supply inflation tends to creep in raising prices. By taxing more reducing the money consumers have available to spend congress can cool economic activity which tends to decrease prices by lowering demand leaving more supply on the market.
Now given the factors of individual credit, investment, and exchange rates just the explanation I just described is an over simplification. Although adding all factors in, the laws of supply and demand inducing and creating inflationary pressure exist and are at play today in our economy. Congress through its undisciplined and self-serving nature has really thrown a wrench into the whole process by creating pet projects and special interest industries. In essence we are on sequestration’s doors step more because we cannot faithfully predict and budget revenues to our spending.
On the spending side sequestration cuts budgets in my opinion without rhyme or reason. Education 1% of the budget gets a 8% cut, defense 20% of the current budget gets a 50% wallop in cuts from the current Budget. The sequester cuts 1.2 trillion from the budget, not even the amount of the deficit for 2012. The large issue isn’t the amount of the cut but the way it cuts.
In a perfect world I would say keep all proportional percentage points of the budget equal to current levels but reduce each proportionally to reach our targeted 1.5 trillion in cuts. So defense which is 20% of the budget would receive a real dollar cut of 20% of 1.5 trillion not the proposed 50% of its current budget. However this is not a perfect world and I have a few pet peeves.
Foreign aid to all hostile, and openly Anti- American nations would not only be slashed but completely cut. Yes that includes funding to Afghanistan’s government and Karzai who has done little in my view to counter the killing of our men and women helping to rebuild his country and government. Other countries like Pakistan, Egypt, Syria, Yemen, and Lebanon would also be on the list. Further until the UN could live up to its charter and actually define terms like Terrorism and defend the innocent, their funding gets cut too. I take a very hard-line on foreign aid to organizations that fund violence and allow the killing of innocence. War is horrible but I am tired of seeing coffins with American flags draped over them… The military is out defending the American people it is time our congress defends them by ending funding of nations and groups that intern fund Terrorists around the world.
To conclude my aim is to cut spending by common sense approach of minimizing waste and fraud in all areas of our budgets. I DO NOT want to raise taxes, per my economic point that will further damage or economic recovery. By eliminating wasteful spending and at the very least streamlining the current tax code; we can avoid the hap hazard sequestration cuts and move forward.