Sorry folks. The world’s been upside-down here, just from being so busy. Also, I’ve been rather depressed about the whole Obama-Geithner wreckage of the economy, and I don’t want to make flippiant comments when people are watching their retirement funds dramatically shrink.
All I have to say is that Obama’s a disaster, as well as Congress, and the GOP leadership is too busy sniping at each other to form a coherent front. The Heritage Foundation (h/t Instapundit) has this informative graph:
As you can see, the deficits and subsequent debt generation is completely mad. If we pay 5% interest on the national debt, which will be approximately $12-15 trillion by 2012, we’re looking at paying $600 Billion a year in interest payments alone.
It’s the worst policy ever. The Democrats and their Republican enablers need to be removed from office, and the government needs to be shrunk dramatically. We’re talking an emergency hatchet job, otherwise we’re entering a death spiral of debt.
My recommendation: completely retool government and streamline. My ideas:
- Flat tax of 20% after $20,000 for single income filers, $30,000 for head of household, and $35,000 for married, filing jointly. Deduction of $3500 per dependent, and deduct interest on residence household. Outside of that, no other deductions.
- 20% capital gains flat tax.
- Cut the IRS payroll by 2/3 (taxes should be much easier to calculate with the flat tax).
- Disband the Department of Education.
- Gradually reduce entitlements except Social Security. Start new SS accounts that invest in the economy through either CD ladders, mutual funds, or both.
- Take 1/3 of the accountants from the IRS and apply them as government auditors to police government waste.
- Put a moratorium on all earmarks. Quickly reduce government spending over 4 years to focus on infrastructure, defense & homeland security, research and foreign policy.
- The goal is to implement policies that will reduce the government budget far below revenue, and start paying off the national debt.
I know, it’s a pipe dream. But we’re getting to a point where only drastic measures will keep us from economic disaster.