Dear Scumbria:
The only modern president to balance the budget using his own authority at the time was President Nixon. Clinton had no authority to balance the budget as all budgets are made into bills by the House, reworked by the Senate, then passing both House and Senate and finally sent to the President for a signature or veto. Congress always has the option of overriding the President, so the buck stops there in Congress.
All the initial budget by the President is a suggestion from the President, the various Departments, and the President's advisors. In the early 70's after the Nixon balanced the budget by not spending authorized funds, Congress passed laws over his objections to stop that practice. A fact that many Democrats like the public to forget because that would have made it evident as to who is to blame about the deficits that piled up afterward. Any other budget by a private person or company has always the possibility to spend less if, one can. Only the screwed up federal government can't (this is a law that should be removed by the Republicans in "cleaning house" although, it is much easier if, they control the Presidency, too (much more palatable)).
So stop heaping the scorn on Reagan and start blasting the real culprits, the Democratic Houses of those years and before. It easy to blame the other party, its harder to accept the blame by your own party.
In that vein, Republicans are going overboard (and Democrats too) in wanting further tax cuts at this time. I am for tax simplification. Many tax cuts could be smaller and yet do far more good by eliminating the loopholes present for corporations, unions, and certain groups of private citizens. The repeal of the telephone excise tax, the AMT, the complicated rules on deductions, targeted tax cuts (just more complications for everyone to give one or two some loophole), and many such tax laws that just make figuring taxes a chore.
Then, at the end, some method to refund any surpluses to the taxpayers in the form of one-time refunds of a percentage of the taxes paid (wheather this includes SS and MC payroll taxes is up to debate) in that calendar year in which the surplus was recorded. That makes the tax cut simple and extremely fair, you paid taxes, you get a refund of x% of that. The calculation is easy to get the percentage, x = 100 * (Calendar Tax Revenue - Government Expenses - Debt Reduction) / (Income Tax Revenue (+ SS + MC (both company and personal) if so desired)). Everyone, including corporations, get a refund if, they paid any taxes.
This simplicity is what will magnify the tax cut into a far larger one. The effort required to calculate them goes down and the compliance rate will go up. Less is spent to tax preparers, CPAs, lawyers, and the IRS further reducing the hidden taxes and increasing the productivity of the nation.
Also once the debt is completely paid off (as much as practical (some bonds do not mature for 30 years or more) as AG has warned Congress about), x will rise higher justifying permanent tax rate reductions to lower it to about 5% or so (enough for any rainy day type emergency required (should get 2/3 or 3/5 of both houses plus President to allow tapping into it (forces it to be used in only true emergencies))). Any major tax increase requires a referendum to be passed by 51% of the electorate (this is really hard as recent highly contested Presidential races show). Tax increases should be very hard.
Pete |
