Conservatives have come out and endorsed a debt
reform plan that will work called the Cut, Cap, and Balance Plan. I believe we can do more. I believe America can do more. Let me be very clear: default would be and
will be a serious problem that would make an already serious problem
worse. Nobody, including Conservatives,
is advocating for going into default.
We must substantially cut federal spending. The notion that we can continue to raise
taxes (I mean, “raise revenues”) to cover our debt and deficits is outrageous. The only way to nip our debt problems in the
bud is to cut spending. Looking at what
our annual deficit is, it looks to me like we’d need to cut spending ranging
from $120-130 Billion per month to cover our annual deficit (that's if our annual deficit is about $1 trillion). The biggest spending drain on our economy is
the so-called “entitlements.” We need to
either restructure or eliminate the entitlement programs.
We also need to cap federal spending. Caps are the only true enforceable way we can
put federal spending on a path to a balanced budget. We ought to cap federal spending at 20
percent of Gross Domestic Product (GDP), and designate 4 percent of that 20
percent towards military and defense spending while eliminating wasteful
spending. Then force the federal
government to balance the budget with a Constitutional Amendment that both
limits spending and requires a super-majority for raising taxes.
Now that we’ve begun to get federal spending under
control, we must have sustainable economic growth through keeping taxes
low. Take the corporate tax rate to zero
percent. Corporations do not pay these taxes;
individual consumers pay them through increased prices. The corporate tax was just Congress’ way to
raise individual income taxes indirectly.
Next, eliminate the capital gains tax and the tax
rate on repatriated profits of foreign profits for US companies, so that the
business sector can make investments and create jobs. Then make the tax rates permanent. Give both workers and employers a 6.2 percent
payroll tax holiday for one year so that the economy can grow faster.
Eliminate all subsidies because a subsidy is just
another name for a tax on consumers.
Force companies and products to compete on a level playing field in the
free market. We also need to streamline,
and possibly eliminate, all unnecessary and burdensome regulations. Get the government out of the way.
The plan that I have outlined will be hard, but it
will work. America will need leaders who
will be able to make the hard decisions to keep us from becoming the next
Greece. It’s time we start
self-governing ourselves and get the government out of the way.