I think you misinterpreted the thrust of my question.
It has nothing to do with creating an enterprise out of a governing entity. What I mean is, why can't the tax and spend structure be such that it equals out in the long run without the necessity of congressional interference? It shouldn't be tax a bit and spend more, ever piling on more debt. It should be tax a bit and spend only what is collected in revenues. Since Congress doesn't have the collective wisdom to make that work, I'm suggesting that they modify the tax code to automatically adjust for their excesses or, should it ever happen, frugality.
Allow me to present a scenario. I'm sure there are many possibilities alternates, so I'm not fixated on this one. A tax bill is passed whereby the current tax rate establishes the base tax rate, with the stipulation that at the end of each year in which there is a deficit, a 1% increase in the tax rate for the following year would apply. And, should there be no deficit, the following year would see an automatic 1% reduction in the tax rate.
With the auto tax hike/reduction structure in place, then every action of appropriation, be it porkbarrel politics or infrastructure maintenance, would have a marginal effect on taxation that would have to be taken into consideration at the onset by all parties for or against the measure.
Granted, such a feedback loop in the tax code, initiated from the government's current position of high debt, would need careful monitoring for its effect on the economy, but I believe the system of automatic adjustment in the tax code itself is a sound plan. |
