Tuesday, July 19, 2011

Tea Party, the Debt Ceil, The Federal Budget, and a Solution

From: http://enews.earthlink.net/article/top?guid=20110717/448b51ee-9ecf-4a9d-8b0b-b3de33d0a70f

“Tea party debt plan takes center stage

From Associated Press
July 17, 2011 5:31 PM EDT

WASHINGTON (AP)—The next step in the weeks-long saga over how to increase the government’s borrowing cap is to let House tea party forces try it their way.

A Republican ‘cut, cap and balance’ plan set for a House vote Tuesday would condition a $2.4 trillion increase in the so-called debt limit on an immediate $100 billion-plus cut from next year’s budget and adoption by Congress of a constitutional amendment to require a balanced budget.

‘Let’s let the American people decide," said Rep. Jim Jordan, R-Ohio, on ‘Fox News Sunday.’ ‘Do they want something common sense as cutting spending, capping the growth in government and requiring a balanced budget amendment to the Constitution?’

The idea appears to be to allow tea party-backed GOP lawmakers to have the run of Congress this week in hopes that they’ll ultimately be able to stomach a plan emerging in the Senate to give President Barack Obama sweeping power to order a $2.5 trillion increase in the debt limit without approval by Congress. (This will NOT happen with Tea Party backing and this will, in my opinion, destroy the Republican Party!—my opinion)

The cut, cap and balance plan, however, is a dead letter with Obama and in the Democratic-controlled Senate—as is a separate effort by Republicans in that chamber to adopt a balanced budget amendment. Amending the Constitution requires a 2/3rds vote of both Houses, including 67 votes in the Senate (If all 100 Senators vote!—my addition), where Republicans control just 47.”

Here is my proposal and it is the ONLY acceptable alternative to shutting down the federal government and letting the President select and prioritize where federal spending is cut to stay within the debt ceiling. As I wrote in my July 13th post:

“LIE #4: Total and complete NONSENSE! The federal government IS NOT going to run out of money! It may hit its limit as far as borrowing money. However, it still has money coming in. It is like the example I have talked about before. A family earns $60,000 per year. The family spends $100,000 per year. The family is about to max out it’s last credit card. It can’t borrow any more. But, the family still has money coming in from a job. It’s not suddenly penniless. It just can’t spend ANY MORE BORROWED MONEY!!! What does the family do? Prioritizes it’s spending!!! Spending only the money it has on the MOST important priorities!

Tax money is coming into the treasury all the time!!! We have money. WE ARE SPENDING MORE MONEY THAN COLLECTED!!! The only sensible solution? STOP SENDING MORE MONEY THAN COLLECTED!!! That we have to default on our debt is the BIGGEST LIE of ALL!!! According to information provided by the federal government tucked away on page 97 of the 2010 Federal Tax Booklet in fiscal year 2009, we spent 5% of the federal budget on the net interest on the debt. We can easily continuing paying that 5% with the 60% of total income the government collects. We just won’t have the use of the 40% we borrow.

The question then become: “What are the President’s priorities?” Does he decide not to pay social security recipients and instead continues to give money to Planned MURDERHOOD so that Planned MUDERHOOD can continue to MURDER unborn babies. Does he decide not to pay members of the military so that he can continue his Unconstitutional lawsuit against Arizona over its legally passed illegal immigration law. Does he decide not pay Medicaid benefits so that he can continue to pay the employees of the federal government. Isn’t the federal government the largest single employer in the nation? It takes a lot of employees to shuffle all the paper the government uses. You get the picture. What are the President’s priorities. Who gets paid and who doesn’t? Who receives money and who does not?”

Here is the compromise:

1) The Balance Budget Amendment is dropped!

As I wrote on my July 16th post:

“The truth is, if we restore the Constitution, this proposed Constitutional Amendment will be meaningless and unnecessary. If we don’t restore the Constitution, it is already meaningless and unnecessary because the government will continue doing whatever it wants as it is NOW doing!!!”

2) BEFORE ANY raising of the debt ceiling, Congress passes and the President signs a 2011-2012 fiscal year budget!

As I wrote on my July 15th post:

“That’s not all though. The federal government has still not approved a budget for the 2011-2012 fiscal year. The new fiscal year begins October 1st. That’s less than THREE months away!!! Three months away and no budget so we have NO IDEA how much the next budget will contribute to the growing deficit. The House of Representatives passed a budget that cut back on spending. The Democratic controlled Senate rejected it. The Democratic controlled Senate then also rejected the President’s budget which would have increased spending. Even though the President now claims that he is for cutting “some” spending. The Democratic Senate is NOT close to passing a budget for the coming year. Isn’t a budget for the coming year more important than raising the debt ceiling. It is IF the President and HIS party are serious about cutting spending. The problem is, the President has NO DESIRE to CUT SPENDING!!! NONE!!!!! HE IS A LIAR!!! AND HE THINKS WE ARE IDIOTS!!! AND SO DOES THE MASS MEDIA THAT PARROTS HIS LIES!!!”

3) Federal income tax on ALL business income—sole proprietorship, partnerships, corporations of all types—will end in the 2011-2012 fiscal year budget. Only individual income will be taxed when distributed to individuals. (Next month, I will propose changes in the individual income tax but the first priority is to stop taxing business income.)

In return for not taxing business income, NO tax money will go to businesses to encourage changes in market activities. Let the free market determine economic activity; NOT some bureaucrat in government and certainly NOT Congress, the President, and the Courts. By the way, there is NO such concept as a business or a business sector that is too big to fail! Failure occurs all the time just as success occurs all the time. The risk is the businessman’s. The rewards are the businessman’s. Let the market place decide. Legal, legitimate supply and demand ultimately CAN NOT be controlled by government.

My guess is, and I doubt if anyone knows empirically because our laws have so distorted the free markets, that the federal government spends more money to try to induce businesses into certain business activities than it collects in business income taxes. By the way, the nonsense of requiring businesses to pay “prevailing wages” when carrying out a government contract would end with the 2011-2012 fiscal year budget. That practice perverts the bidding process and needlessly adds additional cost to the project which adds costs to local, State, and federal governments. Costs that NONE of these governments can afford! Again, let the market place decide!

4) Spending WILL be cut in the 2011-2012 fiscal year budget so that the increase in the national debt for the fiscal year WILL BE NO MORE THAN ½ trillion dollars. Repeating: Deficit spending WILL BE NO MORE THAN ½ TRILLION DOLLARS.

5) For the fiscal year 2012-2013 budget which begins on October 1, 2012, deficit spending WILL BE NO MORE THAN ½ TRILLION DOLLARS.

6) In return, the debt ceiling will be raised by NO MORE THAN ½ TRILLION DOLLARS till October 1, 2012. Before the beginning of the 2012-2013 fiscal year budget, IF the national debt has NOT increased by more than ½ TRILLION DOLLARS, the debt ceiling will be raised another ½ TRILLION DOLLARS for the fiscal 2012-2013 budget year. If NOT, the debt ceiling will NOT be raised.

7) Let the 2012 election determine the fiscal direction of the country.

Will we be a nation that CUTS spending to get our national debt under control or will we be a nation that continues to borrow money to increase spending at the federal government level to “invest” in the nation?

Are the members of the two political parties willing to let the voters decide the direction of the country based upon the 2012 election?

I Timothy 6: 10 “For the love of money is a root of all kinds of evil. Some people (and governments!—my addition), eager for money, have wandered from the faith and pierced themselves with many griefs.”

There is NOTHING in the Constitution that grants authority to the federal government to spend money for education or to build sidewalks for a city or to do a lot of other things that the federal government is NOW doing! If the federal government would stop spending money in unauthorized areas, balancing the federal budget would be much easier and would not CORRUPT the behavior of so many within the United States. IT IS TIME TO STOP SPENDING!!! IT IS TIME TO DRASTICALLY CUT THE FEDERAL BUDGET!!!

It is time, it’s past time to RESTORE THE CONSTITUTION
It is time, it’s past time to RESTORE THE CONSTITUTION
It is time, it’s past time to RESTORE THE CONSTITUTION

It is time, it’s past time to OBEY THE CONSTITUTION
It is time, it’s past time to OBEY THE CONSTITUTION
It is time, it’s past time to OBEY THE CONSTITUTION

It’s time, it is past time to TAKE BACK THE NATION!!!
It’s time, it is past time to TAKE BACK THE NATION!!!
It’s time, it is past time to TAKE BACK THE NATION!!!