Congress Can't Solve The Budget Crisis, But You Can

  I bought a video at a documentary film makers convention that suggests that the Tea Party is sponsored by billionaires as a way to get the marching morons to support the rich. I think I'll pull that one out and watch it on August 2 if the country defaults. If you don't put the blinders of liberal or conservative ideology on before you start or if you're not on some lobbyists payroll, balancing the budget with a combination of spending cuts and tax increases isn't that hard.

Way back in November, 2010 the New York Times published an interactive game that allowed you to balance the projected deficits of 2015 and 2030. You can still play the "game" here, and I urge all citizens to give it a try because it gets around media hype to look at a variety of real proposals for change.

The projected deficit for 2015 is 418 billion dollars while the projection for 2030 is 1.345 trillion dollars. The Hands plan is a mix of 43% tax increases and 57% spending cuts that actually creates a surplus of $78 billion in 2015 and $234 billion in 2030. I didn't cut foreign aid, earmarks, or farm subsidies although I'd advocate for reform all in those areas. I also didn't cut programs for national parks, education, etc.  My first cut reduced the number of federal employees by 10% through attrition. I cut the nuclear arsenal in half, but didn't reduce the size of the army, navy, or air force. I didn't even cut money for controversial defense projects like the F-35. Veteran's benefits were also untouched. I took a gamble and reduced the number of troops in Iraq and Afghanistan to 30,000 by 2013 for an initial savings of $51 billion.

In human services I capped Medicare growth starting in 2013. Annual savings by 2030 are estimated at $562 billion. Growth would be the percentage of Gross Domestic Product growth plus 1%. No other changes in Medicare. In Social Security I'd raise the retirement age to 68 and reduce benefits by limiting COLAs for the top 40% of retirees. I'd also use a more conservative calculation of cost of living increases.

In taxes I'd bring back a conservative version of the estate tax. In my initial proposal I created a two tiered capital gains tax, but looking back I wouldn't make any changes there since the savings are minimal and we going to be running a surplus anyway.  Next I'd increase the payroll tax on incomes above $106, 800. I'd also add a tax surcharge of 5.4% on incomes above $1 million. I'd eliminate loopholes and lower tax rates as proposed by the non-partisan Bowles-Simpson Commission. Finally I'd add a Carbon Tax to fight global warming as well as add revenue and a Bank Tax to finance the next bailout of those too big to fail and too stupid not to cheat. According to my chart this allows us to avoid restoring the money lost to the Bush tax cuts, but if that became necessary I'd do it across the board-its only a 2% tax increase despite all the whining about it!

Not the most exciting blog ever, but perhaps the most important. Please go and play the game and then kick the next Congressman or Senator you see in the ass.