I’ve had it. I’ve had it with this ineffective, corrupt, spineless government threatening to put this entire country into default, to be so reckless and close-minded as to not understand the consequences of not having a viable plan to solve this debt crisis. Where is the creativity? Where are the negotiations? Where are the solutions? Or is it something darker? A political game, where winning is more important than the well-being of this country? Our political system has become so polarized, so petty, so pro-this and anti0that that our leaders forgot how to compromise. Time and time again, they continue to demonstrate that they care about party loyalty, and their own reelections, than for their own country. It’s sad, it’s pathetic, really. If they all actually sat down, put their differences aside, and became innovative, perhaps they would have come to the following conclusions: Heck, if our Congressmen, and our president, cannot get together to make a plan, I’ll just make one for them! So here it is:
First, some background. The United States owes over 1.4 TRILLION dollars. You heard it. This is the money that we owe to other parts of the world, mostly to China. How did we get here? After Bill Clinton left office with a surplus, the Afghanistan and Iraqi War is estimated to cost almost a $2.4 trillion…almost TWICE MORE than our current deficit through 2017. This deficit translates to 141 billion annually, after which if we withdraw from Iraq and Afghanistan completely by 2017, should disappear. We need to fund this, and all of our other programs… we need to have money…and since it doesn’t grow on trees we can’t make more of it (if we do, inflation would make current bills virtually worthless, like pre-Nazi Germany where the Germans burnt paper money because that was cheaper than buying wood.
The first thing that needs to happen is for us to stop providing corporations with loopholes to pay less taxes than they should actually ownown. Currently, using the “Double Irish” and “Double Dutch” methods, companies can allocate their incomes to countries with much lower tax rates, yet attribute the expenses to higher-tax countries, thus getting taxed at much lower rates of pre-tax income thsan in the US. According to Kimberly A. Clausing, an economics professor at Reed College in Portland, Oregon, removing this loophole would allow the US government to collect up to $60 billon annually. Yet the Republicans are opposed to closing this loophole, arguing that this would discourage business ownership in the States. I’m pretty sure that this is bullshit…how exactly can American entrepreneurs start their businesses in countries where most of them don’t even hold citizenship? Once someone starts a business here, make a law that they must remain here and hire a certain percentage of their employees in this country. No corporation in its right mind will ignore one of the biggest economic superpowers, where so many citizens drive up consumption!
While the Republicans are staunchly opposed to closing tax loopholes, at least they have figured out a way to become more efficient. Republican Representative John Mica has recently concluded a report called “Sitting on our Assets”. This report provides some ways that we can cut down on our expenses by selling real estate, selling unnecessary government properties, and not building new buildings when old ones are perfectly functional. The report has some really good insights, which if you want to see for yourself, you can check out here. According to this report, we can save up. Over a 10 year period, this would save about $250 billion…or $25 billion per year. I do wonder why these recommendations have not been implemented…if Republicans are inflexible in finding ways to raise money, the Democrats are as bad at using it inefficientely and spending too much.
Here is a tidbit of information that I bet that you did not know. The US military spends 102 billion annually on foreign bases, NOT INCLUDING those in Afghanistan and Iraq. Why do we even have so many, most in countries that pose no threat to us? Why the hell do we still need military bases in Germany or Japan (OK< perhaps we needed them after the end of WWII, but why now)? Why in Italy, Spain, Cuba, or South Korea? Surely we can train all of our soldiers in the States. Surely the aforementioned countries do not present a threat to American interests. These bases should just be cut…they serve no useful purpose that could be accomplished at home, they do not remove any threats, and they just waste money. It does not make us any stronger militarily, and at a time of crisis, couldn’t we just contract with those countries to use their land as a launching zone for wars, if necessary?
Wanna save even more money? Here’s something controversial, which conservatives will decry. Legalize drugs…all of them! Let’s face it. The war on drugs has failed. It has created an underground of criminals and has turned otherwise harmless, maybe even productivem, citizens into hardened criminals. How many times do we need to learn that prohibition never works? It did not work with alcohol. Anyone who wants to smoke weed or other drugs will find it. Only difference is, they will buy their drugs at a premium, the cost of the dealer’s risk of getting arrested. What if that surplus went to the government instead? Not only could we raise additional revenue, but also save money from the police enforcing drug laws, and instead focusing on more dangerous criminals…you know, the ones who actually pose a danger to our society. According to Harvard economist Jeffrey A. Miron, legalizing drugs would inject $76.8 billion a year into the U.S. economy — $44.1 billion through savings on law enforcement and at least $32.7 billion in tax revenues from regulated sales. Think about that number for a second. This is the golden opportunity that our nanny government is missing out on to generate additional money.
Here’s another controversial way to significantly raise taxes. Allow the illegal immigrants in this country a path to citizenship….as long as they contribute to this nation’s economy by paying a penalty for entering here illegally. Here is what I would do. First, I would have every illegal immigrant (yes, I refuse to call them “aliens”..they’re human beings, not from Mars!), pay $2,000 for permission to obtain a temporary green card. This would allow them to seek jobs at normal wages (i.e. not below the minimum wages). To fully become eligible for citizenship, these immigrants must then pay $8,000 within 10 years. Illegal immigrants would take full advantage of this opportunity because then they could not only have higher wages but also live a normal life in the States without fear of getting busted, and be willing to pay for their kids, who could have a future here. Within 10 years, the government revenue raised from this legalization process would be $10 million* $10 grand, or 100 billion in 10 years (average to 10 billion annually). Look these people are here already, an nothing will change that. And yes, I realize that there is a fear of competition for jobs. Stop complaining just get more skills than the illegals…unlike them, you can go to college. After all, we are all immigrants, and many of the oldest generation Americans did not seek any special permission to get into this country; they just went, just like most of the illegals. Besides, more citizens would create more people to collect taxes from, increase the growth more businesses, it would drive up consumption, and as a result make companies more profitable, which would not only increase their tax contributions but allow them to hire more employees with the extra income.
Oh yeah. Taxes. Republicans are absolutely against tax increases…of any kind. I just don’t get it. Ok, I might see the point that taxing the rich more is unfair, discourages them form working harder, and punishes them for making it. How about some alternative tax methods, then? Would raising taxes by a measly $10m a month be really that bad, if it helps the economy? So you may skip one movie a moth. You may cook once instead of eating out. $10 dollar a month is only $120, after all. Consider this a speeding ticket…without even an effect on insurance. In tough times, sacrifices need to be made. The government needs to make cuts, and so do we…of we want our standard of living to continue. If each of 310 million Americans has to pay an extra $120, we would raise 37.2 billion dollars.
So let’s sum up. If the country adopted my plan, we could raise an extra 60+25+102+76.8+10+37.2=$311 billion. As I mentioned before, we would also have to spend $141 billion through 2017 on wars in Iraq and Afghanistan, so this additional revenue translates to an extra $170 billion. Assuming that interest will keep growing, it will take us 10 years to pay off our 1.4 trillion debt, as long as we are smart with our money and not borrow any more. There is absolutely no way that we can allow a default. Other than the consequence of the collapse of our economy, this would not allow us to borrow anything and have us lose international respect. If you borrow money from me and you don’t pay me back, I do not respect you as a person and would not want you as my friend. The longer you procrastinate in paying me back, the more I disrespect you. Let’s just hope that the parties know when to stop playing their destructive game of “chicken”…or they will crash head-on at full speed, with the consequence that the United States becomes that guy who cannot pay back a debt!
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