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Another Perspective
How To Solve Our Growth and Jobs Deficit
When it comes to the debt-ceiling issue, Republicans and Democrats are on different planets.
As President Barack Obama lectured us with foolish notions — such as attempting to reduce America’s $14.4 trillion deficit by focusing carefully poll-tested, repetitive threats — it is clear that, as the debt-ceiling issue reaches a stage of urgency, the positions staked out by Republicans and Democrats are on different planets.
Just as six presidential candidates, 12 U.S. senators, 26 House members and more than 100,000 citizens have signed onto a pledge requiring a debt-ceiling-increase limitation to be tied to serious budgetary cuts and a balanced budget constitutional amendment, it appears that the Republican leadership is working to undermine the proposal. The MSM and bloggers are reporting that certain members of the Republican establishment are not willing to do the heavy lifting demanded by the conservative movement, which is responsible for their reclaiming of the House majority. Article after article has been written, with gentle nudging by unnamed Republican operatives, that this is just another meaningless promise and Americans have so-called “pledge fatigue.” And while it is true that pledges are often used by politicians as a way to avoid going to war against liberal Democrats, the proposals put forward in the Cut, Cap and Balance pledge are so fiscally conservative, they would have been considered impossible in any previous Congress.
Instead of “pledge fatigue,” fellow patriots and I have “backroom deal fatigue.” Republicans have shown themselves too quick to take aim at small, controversial budgetary matters while settling for a few billion dollars of cuts and caving to President Obama. This is unacceptable. As the Congressional Budget Office conservatively reports, America’s debt will steadily increase to a prosperity-killing 100 percent of GDP by 2021. This number underestimates the seriousness of the deficit, as the CBO does not use standard accounting rules involving future liabilities, cannot calculate the true economic cost of Obamacare, nor can it account for the negative effects that additional debt would have on the economy.
Therefore, the first and most important part of the pledge involves drastic but necessary cuts in spending, which will reduce the deficit today and into the future. Then, the pledge requires signers to incorporate serious, unbreakable spending caps into the budget, which will put America on a path to a balanced budget. Finally, as my co-author Ken Klukowski and I discuss in our new book, “Resurgent: How Constitutional Conservatism can Save America,” the Balanced Budget Amendment must have the type of guidelines set forth by Sen. Orrin Hatch and Sen. Mike Lee of Utah. Not only will it require expenditures to equal revenues, but spending would be capped at an approximately historical 18 percent of GDP, and all future tax increases would require a two-thirds super-majority vote for approval. This is no time for punch lines such as “eliminate waste, fraud and abuse.” Politicians of both parties have shown themselves to be untrustworthy with your money, and to get results, we need clear, unbreakable covenants with a concrete, objective goal.
Polling data shows that such a proposal has overwhelming, bipartisan support, and the American people are generally concerned about the prospect of enslaving future generations with insurmountable obligations. But it is the Tea Party that can provide the necessary pressure legislators need to pass the amendment and send it to the states for ratification. Tea Party members should take a copy of the pledge, from CutCapBalancePledge.com, and distribute a copy to every county party meeting and town hall event, making sure every candidate for Congress and every gubernatorial candidate is on board.
Investment capital always follows the path of least resistance and greatest opportunity. And after decades of ballooning deficits, only if America sets itself on a corrective course for responsible governance will risk-averse entrepreneurs again use their talents to create jobs and generate prosperity. It has been almost 800 days since the Democrat-controlled Senate has passed a budget. Since politics is once again forcing discussions to the 11th hour, conservatives and Republicans need to be unified behind the Cut, Cap and Balance proposal before sitting down at the negotiating table.
About the Author
Ken Blackwell, the former mayor of Cincinnati, Ohio is Vice Chairman of the Republican National Committee’s Platform Committee. He also serves on the boards of the Club For Growth and the National Taxpayers Union.
Letter to the Editor View all comments (41) | Leave a comment
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Bill Hussein O'Stalin| 7.14.11 @ 7:08AM
Your proposal would take guts.
You state that investment capital always follows the path of least resistance and greatest opportunity. That's an economic maxim.
In direct opposition to that economic maxim, politicians always follow the path of least resistance. And the path of least resistance becomes the path that no one can resist.
Alan Brooks| 7.14.11 @ 7:03PM
"When it comes to the debt-ceiling issue, Republicans and Democrats are on different planets."
Only a GRAIN of truth to this; don't you want to leave yourselves a bit more wiggle-room for January 20th 2013 when Bachmann (supposedly) becomes president?
POST American| 7.14.11 @ 7:16AM
"They were traitors by virtue of what they
failed to do------"
The TREASON op consolidates for the FINAL
round. Meanwhile A.S. compliantly programming '90's Show'
front ops which, considering the Rockefeller
front op nature of the Clintons ----wasn't even
a good '90's Show' ---in the 90's.
The Bush Sr. CFR/RIIA/ Acheson-Rockefeller
cultural subversion and TREASON agenda now marking its 21st Anniversary.
---Care to sip the champ ---PAIN?
Well, if you care to or not ---YOU WILL BE...
Handy| 7.14.11 @ 7:24AM
POST,
I have read a lot of your comments, and I must admit that I haven't understood any of them.
fmm| 7.14.11 @ 12:06PM
I always skip reading his comments
Dick Nome| 7.14.11 @ 1:10PM
They aren't comments. They are incoherent mutterings. They are not even complete sentences.
David W| 7.14.11 @ 8:52PM
"Incoherent mutterings" and "not complete sentences..." OMG, It all makes sense. POST American is really George W. Bush! Hail to the Chief!
Alan Brooks| 7.14.11 @ 11:00PM
oh but his father was the great Gipper who raised us when we were but little lads and lassies.
The Gipper shall return at the End of time to save us all from ourselves!
Handy| 7.14.11 @ 7:20AM
I think this is a unique opportunity to begin the process of bringing the budget process back to heel. The key is not Obama and his minions. He and they are unrepentent Socialists.
The real key is to stand firm against them. It doesn't so much matter if we can't get CCAB past the Senate this time around. When both houses are ours in 2013 will be soon enough. But, let's get the party started. That means no tax or spending or debt-ceiling increases until then.
Southern_Comment| 7.14.11 @ 7:44AM
This is the time to stand firm against Obama and the useless Dems, and for a second I had faith that was going to happen, then I saw MM's plan and thought 'HOW COULD YOU EVEN SUGGEST THAT????' and I've watched their grand parade of press conferences on their rise to rockstar hall of fame. Here they've been handed the power of the masses, the strength of the American people and what do they do? Play games - the American people don't have backroom door fatigue, no our issue is the disgust we see in the weak and greedy not representing us. Cut the Entitlements and don't even mention raising taxes.
Chris Pedersen| 7.14.11 @ 7:42AM
Pass the Fair Tax Plan HR-25, Problem[s] Solved!
Handy| 7.14.11 @ 8:39AM
The Fair Tax should be getting a lot more print as this debacle plays out. I absolutely agree with all of its provisions, save one: The prebate.
The problem with the prebate is that it would substitute IRS agents with an army of bureacrats computing who was married to whom and who had custody of the children. With all the broken families, it would be a nightmare.
The Fair Tax promises to cover SS and Medicare as well. All well and good, but these programs should be opposed on principle, not supported just because they can be paid for through alternate means. This can be a separate argument, and perhaps should be.
Have you considered| 7.14.11 @ 6:20PM
I have not done much research on the Fair Tax plan, but from what little I have read, the sticking point for me was also the Pre-Bate.
It also would not be a good idea unless the 16th amendment is repealed FIRST. We don't want to be stuck with Both do we?
Anyway, a couple things I see are immediately objectionable. Firstly, the IRS would still be in business, poking its nose in citizen's business. This intrusiveness is anathema to a free citizenry.
Secondly, it is still a re-distribution of wealth. If I must pay 23% because my neighbor pays a lesser percentage, as opposed to everybody paying say 18%, then it becomes clear that one citizen is still favored over another.
I am in favor of going back to the Original intent of our founders (Article 1, Secion 9) which is a FLAT TAX, whereby any direct tax is to be levied upon the states in proportion to the census. The state will collect it from their citizens.
Here is Alexander Hamilton's words on this subject as found in Federalist #36:
"Let it be recollected that the proportion of these taxes is not to be left to the discretion of the national legislature, but is to be determined by the numbers of each State, as described in the
second section of the first article. An actual census or enumeration of the people must furnish the rule, a circumstance which effectually shuts the door to partiality or oppression. The
abuse of this power of taxation seems to have been provided against with guarded circumspection."
Handy| 7.15.11 @ 2:21AM
Dear hyc,
You should take the time to read up on the Fair Tax, but I will give you the highlights.
It would repeal the 16th Amendment, thus eliminating federal income taxes altogether, including corporate, FICA, Medicare, capital gains, interest, dividends and unemployment. Excise taxes, such as on tires, would also be eliminated. There would be no inheritance tax.
It would levy a federal tax on new retail (final) sales. It is not a value added tax, because intermediate stages of production would not be subject to it. Sales of used items and services would be tax-free as well. Also, there are some items such as food, medicine and clothing that may be totally or partially exempt.
The 23% is an initial estimate only. It would apply to all people, regardless of income. Just as state and local sales taxes do today. 23% is supposed to cover all federal expenditures, including SS and Medicare. If these programs were to be eliminated, as they should be on principle, the rate could be a lot lower.
There are many advantages to this approach. It would make people with tax-free incomes, including criminals, subject to taxes on what they purchase, thus broadening the base. No tax returns, no loophoes. It is simplicity itself, so far.
The problem arises with the so-called Prebate. This misguided concept would involve sending monthly checks to people based on a formula that determines the poverty level for different family situations. Supposedly, all people would start off with one rate. A single mother with two kids would receive more than a married couple with no kids. A married couple with two kids would receive even more. Think of it as an earned income credit without any income required. The intent is to cover the imputed 23% taxes poverty level folks would presumably pay on purchases.
Imagine trying to compute the applicable poverty level. Afterall, it costs a lot less to live in Arkansas than it does in New Yok City. Furhter imagine the nightmare of trying to track births, deaths, marriages, divorces and custody situations - at a federal level. Not only would the prebate be unworkable; it would be an invitation to fraud on a massive scale with multiple people claiming the same dependents. Totally unenforceable, no matter how many bureaucrats are hired. The prebate is just stupid.
Hamilton realized that taxes on incomes were morally wrong and his solution was proper for the time. It would still work today, but not as well as the Fair Tax proposal (sans prebate). The Fair Tax is on consumtion, not income, nor is it a direct capitation levy. It requires no census data and it does not infringe upon states' rights to raise their own revenues from their own citizens. But citizens could choose how much to pay in taxes through their purchasing decisions.
I urge everyone just to search for Fair Tax. Lots of good stuff available.
Jason| 7.14.11 @ 8:06AM
This will NEVER happen. If it does how will democrats keep their welfare slaves? How will they buy votes?
David W| 7.14.11 @ 8:53PM
Oh. I dunno - the old-fashioned way - using money like the Republicans?
JP| 7.14.11 @ 9:06AM
I think the main point here is the President's re-election. He has been in campaign mode since Jan 2011. The other point is that the President's party is addicted to the public purse like a crack addict is addicted to blow. The problem with McConnell's proposal is that it is illegal. That, and no one in the GOP would back it.
Lost in the news yesterday, was the testimony of Bernecke before a House oversight committee. During his testimony, Bernecke hinted very strongly that he would launch QE3 if the jobs picture doesn't improve very soon. Within minutes, the dollar plummeted, Gold, oil, corn, and the DJIA soared. Between speculators addicted to easy money and our ruling class's addiction to borrowing huge amounts of taxpayer's money our economy is doomed.
Dixie Pixie| 7.14.11 @ 8:50PM
Greetings JP
QE3, QE4 and QE5 are going to happen.
The only thing holding up the Federal Treasury Bonds and Obama's spending binge is the Federal Reserve buying up the Federal Bonds.
Obama has to keep the federal spending binge going feeding his Democratic supporters because that his only source of political support.
If he stops for even a second, everyone will notice he is a disaster in all areas and will abandoned him in a instance.
LMajito| 7.14.11 @ 9:10AM
if the repubs blink and come up with a back door scenario to lift the debt ceiling, it's time for a third party in this nation because the two currently in power are so corrupt that only a biblical cleansing would remove the filth.
i don't hold up hope of the repubs holding the line at the last minute they're going to end up lame with all kinds of excuses
so the fat cats in wall street will lose their shirts? f..k them so be it...so the us can't borrow any more money...great daddio that's what one goes through when one borrows way too much and can't pay it back...so usa must bring back the troops from s korea, germany, italy, spain, turkey, iraq, ships from the straits of hormuz, south china sea...cool let the world see what they get when china and wild eye persians are in control...so the africans won't get any more greenbacks and their populations will be decimated by aids...just fine...no brains to control your sick johnson then let the darwin laws of nature take over...
the country as a whole needs a total revamp of the financial system and total removal from power the bankers(starting with the fed) that have been paying the whores in dc all these decades to let them do as they please...what's with these cats, a secret bunch whose decisions affect all of us? why did the american idiots in the past accepted this? in exchange for what? servitude?
Canadian Libertarian| 7.14.11 @ 10:41AM
LMajito for president. Someone who calls it like it is.
John Navratil| 7.14.11 @ 9:17AM
LMajito,
There is no time for a third party. If the Republican party cannot be straightened out by the conservatives, we are gone.
David W| 7.14.11 @ 8:54PM
Bye. Actually, I think this country would be healthier with five parties - Democrats, Republicans, Liberals, Conservatives, and Greens.
hardcard| 7.14.11 @ 9:17AM
How to solve our debt, spending and jobs disasters?
Remove obamasoros ASAP. Term limits on all government elected representatives and a balanced budget amendment.
Have you considered| 7.14.11 @ 6:41PM
Our founders were against term limits, that is why they are not present in the Constitution. The simple reason is the fear of the lame duck.
Federalist #72 is well worth reading in its entirety, but here is a small quote from Alexander Hamilton to whet your whistle:
"An ambitious man, too, when he found himself seated on the summit of his country's honors, when he looked forward to the time at which he must descend from the exalted eminence for ever, and reflected that no exertion of merit on his part could save him from the unwelcome reverse; such a man, in such a situation, would be
much more violently tempted to embrace a favorable conjuncture for attempting the prolongation of his power, at every personal hazard, than if he had the probability of answering the same end by doing his duty."
In other words, without fear of the voters, the lame duck acts according to his personal interests, not the country's.
Have you considered| 7.14.11 @ 6:46PM
Oops, should have said "not present in the Original Constitution. Presidential Term Limits were added by Amendment #22.
Indiana Alex| 7.14.11 @ 9:34AM
All a balanced budget ammendment does at this point is implement mandatory tax increases, and explode any hopes of actual entitlement reform.
Ken (Old Texican)| 7.14.11 @ 10:15AM
Hey,
we ALL know HOW to fix the problem of jobs and growth.
Two simple steps:
1. Unleash our energy industry... BOOM... a million jobs overnight, and another five million jobs over the next year due to affordable oil and gas.
2. Get covenanted long term de-regulation by government.
TA DA!
You guys just have to buy my darned book. You will get chills down your arms. I have now discounted it to $7.95 in preparation to go on amazon.com
www.txbooks.blogspot.com
Dai Alanye | 7.14.11 @ 11:34AM
Since Ken is still pushing his tome I'll make a counter-offer.
Go to my site, read the excerpts, and if anything interests you I'll send AmSpec commenters a FREE ebook of any work that isn't presently under contract. Unlike the Texican I don't promise to save the world or give anyone a thrill up the leg, just some good clean fun.
I'll need to know what type of device you'll be reading on, and what format you prefer. Formats are limited to ODT, DOC, PDF, EPUB, and maybe MOBI if I can get the conversion program to work. I suggest PDF for big screens, EPUB for ereaders.
[This offer not valid for commenters whose CAPS key gets stuck, or who sound like leftist trolls. (I imagine you know who I mean.)]
Ken (Old Texican)| 7.14.11 @ 12:23PM
Dai,
You forgot to give us a link!
Hey, as I have said numerous times, my "tome" comes with a money-back guarantee.
Thousands sold and Nobody has requested a refund yet.
I'm sorta' honored.
Have you read it?
PS: no "thrill up a leg" but rather "chills down your arms."
My predictions are STILL sending chills down my arms as they unfold.
OK,
buy the darned book, read it, and then demand a refund... then REVIEW it here and tell us how stupid it is.
God bless
Oldefarte| 7.14.11 @ 1:36PM
Even though this budget fight may produce a stalemate and the resultant financial upheaval from same, there is a radical/drastic solution for taxpayers that would accompolish their ideals if they are willing to garner the courage/guts to activate same. If all taxpayers [or most] would simply REFUSE TO PAY THEIR DUE TAXES TO THE GOVERNMENT, the loss of revenue from same would cause/result in a complete destruction and downsizing of governmental operations. if the government can force us taxpayers to pay taxes, why cannot the taxpayers reversingly refuse to pay same? How you say? Easy, simply by employees filing W-4 tax filing forms/statements declaring say humongous amounts of exempltions [or partially so]. If say $2 is withheld in income taxes instead of the correct amount of $200 each paycheck, then no/much less periodic tax revenue would be received by the government. If yearly property tax bills from governments were not paid by taxpayers, said governments would lose substantial revenues and be forced to lay off non-critical employees, downsize their welfaric operations, etc. It would be an extension of the old NO TAXIATION WITHOUT REPRESENTATION argument. Citizen taxpayers could thereafter tell the governments to either reduce their bloated/oversized budgets accordingly or they/taxpayers would continually refuse to pay their taxes. It's possible folks, and only requires your outrage to be put into collective action by all of us!!!!!!!!!
tsd| 7.14.11 @ 2:01PM
Our problems are simple, we have a sending problem. Stop the wasteful entitlement spending, cut the big government spending, cut the over regulation costs, cut all the aide to our enemy's and to propping up other socialist country's who have proved the failure of socialism/communism and we can cut the budget by 50%. We do not need to borrow more or tax more. All the so called experts with MBA's and PHD's in Washington are so obsessed with ego's, power grabbing and greed that they have no interest in solving our problems.
Louis Jenkins| 7.14.11 @ 2:36PM
The fear that eminates from Obama has sparked a fire in many of his followers. No checks being issued? My oh my! I'll have to admit that the Republicans are playing it cool, and receiving a lot of the blame as a result. But they're all together for now. Hopefully they'll hold the center and not budge. It is odd that the Democrats haven't had a budget in some time, and now all of a sudden, we're up against the wall. Sounds like a lot of smoke and mirrors going on here. Remain cool and collected Republicans!
Petronius| 7.14.11 @ 4:05PM
It's long passed the time the public be told what Obama's demand for tax increases is about. The only cohort among his constituents not directly collecting a Federal benefit check at the expense of every Productive American consists of all the unemployable overgrown infants living at home, sucking air, and watching ET. And McConnell and Boehner better understand that caving in again will be the last nail in our economic coffin.
David W| 7.14.11 @ 8:48PM
Okay, I know this is a bit off-topic but this ... writer uses the phrase "going to war against Liberal Democrats" so the next time someone on the Left is blasted for using the "w" word, keep that in mind.
Answers1| 7.15.11 @ 1:16AM
Shut down the government, and then we will see what is truly important for America: interest obligations and military pay. Little else.
TheUtopiaFactory.blogspot.com | 7.15.11 @ 1:49AM
The answer is a new party made up of the best few republicans and independents and the rest, patriots who've never held office, but have at least run businesses. Patriots who understand the number 1 problem America faces is the third world invasion. It effects everything.
sell world of warcraft gold | 7.15.11 @ 4:09AM
nice
weddingdress | 7.15.11 @ 4:52AM
They aren't comments. They are incoherent mutterings. They are not even complete sentences.
ina bearings | 7.15.11 @ 5:15AM
Investment capital always follows the path of least resistance and greatest opportunity.
Purpleguy| 7.15.11 @ 3:13PM
Exactly when will the children in Congress do their jobs and not have to be "forced" to do it. This country makes plenty of money to pay it's bills. The Great Recession has hurt government revenue collection and increased outlays, of course, but come on people, Congress is there to help America, not the Republican Party or the Democratic Party.
Oldefarte| 7.16.11 @ 2:20PM
Yeah, and the 'Great Recession' was caused by the Democrats' CRA of 1977; The Great Society; Affordable Homes; HUD; Fannie; Freddie; the administrations of Roosevelt, Kennedy, Johnson, Clinton, Obama; ADC; lax governmental enforcement of illegals crossing our southern border; the current Justice and Interior Depts; Acorn; HOPE & CHANGE; etc [just to name a few]!!!!!!!!!!!!