Friday, April 15, 2011

Reducing the Budget Is Simple

To a large degree Paul Ryan's plan resembles the British solution to reducing their debit.  Britain Conservatives were voted into office with a 'mandate' - reduce the deficit now!

Checking the plan, as implemented by the British for their deficit problem, reveals that massive cuts are 'not' the answer to making the case for how to reduce the deficit.  Britain's economic initially showed signs of success in the making; however, indications are now showing that it was a bad mistake!  Here is today’s headline in the British financial newspapers regarding Britain’s budget reduction plans: “Households face falling standards of living for at least another two years as rising prices outstrip wage increases, the Government’s official economic forecaster has warned.”

Truly, the only way to reduce the deficit is to identify and reverse the actions that resulted in those huge deficits - raising taxes on the rich and special interest groups that created the deficit is the only logical thing to do.  Taxes cuts initiated to create jobs didn't; therefore, tax cuts to reduce the deficit coupled with prudent spending decisions should be the logical choice.

I would do the following:

1. Take the advice of Secretary Gates and cut programs that have been proven not of any use in our Armed Forces.

2. Reverse the tax cuts that where a significant cause of the deficit - not because they were a bad idea, but because they were never included as part of a balanced budget and didn’t create the jobs they were suppose to create.

a. Eliminate all tax codes that favor special interest by offsetting tax liabilities with dollar for dollar job creation investments.
b. Subsidize the creation and promotion of 'green' jobs and infrastructure.

3. Reduce the cost of Medicare Part D and Medicaid by authorizing the government’s purchase of pharmaceuticals for redistribution to all subscribers.
a. Enforce a vigorous prosecution for fraud and abuse with severe penalties for those convicted.
b. Reduce the frequency of patient ‘emergency’ visits by encouraging hospitals to implement ‘get it right the first time’ diagnostic procedures.
           c. Interlink health care for Congress with any health care program voted into law for the citizens of America.

4. Legislate into law John Conyers' Bill to re-skill the jobless/unemployed... targeting 'green jobs' of the future.

5. Retard the out-sourcing of jobs by closing loopholes in our tax code that either encourages or rewards businesses that out-source jobs.

6. Finance the modernization of our infrastructure with the end result being additional job creation with ‘dollar for dollar’ reductions in tax liability to private investors.

7. Marginalize 'favorite nation' trade agreements that don't reciprocate.

8. Remove all deregulations in Commerce that have no check and balance legislation to ‘police’ abusers.
            a. Prosecute vigorously ‘White Crime’ with significant penalties for the convicted.
b. Restrict further off-shore trading, speculation in industries wherein these practices create false supply/demands rises in consumer process, and require originators of derivatives to hold a forty percent interest in such derivatives until maturity.
c. Recall and unbundle all faulty derivatives and require the originator to reclaim all bad loans found within that derivative.

I would do these things initially and make adjustments/additions after the first year of implementation.

In a democracy, silence is not golden; it is condonance in the face of injustices; it is fear, where the thought of reprisal fosters control – Rodney A. Davis


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