SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Fiscal Cliff
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: alanrs who wrote (5)11/16/2012 9:20:23 AM
From: HerbVic  Read Replies (1) of 9
 
You got it!

Congress would still be free to tweak, add and remove entitlements, pork and incentives, but all the while doing so being mindful of the blowback from voters a year later when the Tredd Lightly Free Parks and Services bill is paid for.

My example in the previous post is a bit over simplified for the purpose of discussion. A well tuned system could look at the difference between the previous years revenue and appropriations and adjust to that with a bias to paying down the back debt over a longer timeframe.

The concept is that there are only two variables creating the tremendous debt overhang, spending and revenue. Since Congress is so inept at controlling spending and revenue balance separately, one of them should be tied to the other for automatic adjustment. The fact of the matter is, government must get done. Spending will happen, and History tells us that it can go up and down, depending on the country's needs. The problem lies in the rubber band between spending and revenue enabled by massive debt creation. Too flexible a rubber band and Congress acts like it has unlimited funds to draw from. A law with an appropriate tax effect one year later, would tighten that rubber band enough to hold the big spenders accountable before the voters forget why their taxes went up.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News