Fiscal Solutions And Economic Recovery
Mr. Speaker, the political parties are missing an opportunity to deal with both the discontent and the fundamental causes we see in the political process today. You don't have to identify with the tea party to be frustrated with the tax…
Mr. Speaker, the political parties are missing an opportunity to deal with both the discontent and the fundamental causes we see in the political process today. You don't have to identify with the tea party to be frustrated with the tax system. It is incomprehensible, expensive, unfair, and unsustainable. People of all parties and philosophies understand that the long-term debt of the United States and the fiscal practices that drive it are heading for a train wreck.
The answer is not to ignore real problems, change the subject, or make it worse. A tax discussion should, frankly, address why the system is incomprehensible, the lack of certainty, how it doesn't pay for what America needs, and how we spend through tax breaks about what we collect overall.
There are real problems that we should be zeroing in on, like the alternative minimum tax. It was a millionaire's tax some 40 years ago that now threatens 30 million American families, not the billionaires. They won't pay it at all. It will be the near rich and the middle class. It was a system that was actually made worse the way the Bush tax cuts were structured.
We should deal with the corporate tax. Yes, it is the second highest stated rate in the world, but few companies pay the full amount because of a Swiss cheese of exemptions and special provisions. It actually penalizes people who manufacture here in the United States.
I would suggest that, if we can borrow trillions of dollars for tax changes, shouldn't the trillions be used to fix the broken system and not to push problems ahead a couple of years?
Instead, the debate is largely about extending $3.5 trillion in expiring Bush tax cuts or maybe about only extending $2.8 trillion, not to mention the cost of borrowing that money from the Chinese, the Europeans, or the Japanese. Missing in the debate is how much of that we can afford at all, not just the borrowed money and the deficit, but the lost opportunity to get the tax system right.
Yet it is not just about taxation. We must also look at the expending side of the equation, which is widely acknowledged. Our defense budget can be reduced and redirected. There are hints of this in the Obama administration, but we can do far more. We cannot continue to spend above the rate of inflation, not counting the wars in Afghanistan and Iraq, while we spend billions of dollars to protect West Germany from the Soviet Union, neither of which exists anymore.
We lavish agricultural subsidies on the richest agribusiness, but it doesn't help most farmers or ranchers. We can help far more for far less.
There is the bottomless pit in the name of homeland security. Dana Priest's brilliant writing in The Washington Post pointed out: It is out-of-control spending, layer upon layer of activities, that doesn't make us any safer. Perhaps we may be less safe with all the expenditure.
There are some on the other side of the aisle who talk about eliminating health care reform. No. We should actually accelerate the reforms that are in the health care bill so that they won't just save money but will actually improve health care. We can invest in value over volume. We must not ignore why the long-term picture is such a problem and certainly we don't want to make it worse.
Many tea party sympathizers and Jon Stewart fans could agree on this path forward. It would be nice, instead of campaign documents that get people past an election but that don't solve a problem, to work on areas of agreement with the public which start us on a path to fiscal solutions and economic recovery.