As it turns out, when defaulting on maturing Treasury debt could put the world’s financial markets into a state of chaos, $38 billion is nothing. The real issue is what happens when Congress has to vote to increase the current $14.25 trillion federal debt ceiling, an action that could become necessary in the next five weeks.
What are the men’s issues at stake here? Social Security (roughly $5 trillion is money the government has borrowed from other accounts, mostly from Social Security revenues, according to federal figures), the trillion-dollar cost of sending our men into wars in the Middle East, education reform, Medicare, Medicaid, and unemployment insurance that resulted from the “he-cession.”
A bipartisan committee appointed by Obama to study the problem of the deficit came back last December with recommendations that included tackling social security, raising certain taxes, and simplifying the tax code itself in an effort to take $4 trillion out of the budget over the next decade. But it’s unclear whether anyone in either party has the guts to do anything but dance around the real problem.
Just speaking as one guy—a businessman raised by Quakers—here is what I would like to see both parties have the courage to address:
- Fix social security and stop playing the Ponzi scheme—really no better than what Madoff did—whereby we make a specific commitment to future retirees when taking their money, then use it to pay our bills for non-related federal programs, leaving us completely unable to live up to financial commitments made at the outset.
- Exclude all U.S. military personnel from political squabbling. Pay them no matter what. While we are at it, greatly increase the resources spent on treating PTSD and brain injury resulting from wartime service.
- Go to a flat income tax that eliminates the massive complexity and unfair loopholes of the current IRS code. Make sure that the vast majority of government services go to those who need it at the bottom end of the economic spectrum, but stop fighting over a set of supposed incentives so complex that even a guy with an MBA from an Ivy League institution can’t understand it.
- Bring our men (and women) home. We need to rebuild America, not the Middle East.
- Build more schools, not more prisons.
- Restructure Medicaid and Medicare to make them fair and sustainable.
What do you think? We need all thoughtful men and women thinking about this—that’s for sure.
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For more, please read:
Military Families Face Pay Freeze, More Uncertainty
Shooting the Truth
Blood-Splattered
—Photo Michael Kamber
Go to a flat income tax that eliminates the massive complexity and unfair loopholes of the current IRS code. I’m greatly disappointed to see you perpetuate this right wing myth, Tom. The amount of additional complexity created by taxing different levels of income at different rates could fit comfortably on the back of a postcard with room to spare. The reason we have a tax code thousands of pages long is because of the complexity of the rules regarding what is and what is not taxable income. A flat tax will do nothing to cure that. Moreover, a progressive tax… Read more »
Hmm. To be honest I have voted democratic in every Presidential election since I was 18 (I am now 46) so it is kind of hard to paint me as a right winger. The reality is rich companies and rich people do not pay the high marginal tax rates in the code (witness GE actually got a massive tax REFUND in 2010). The code is all about deductions and the rich are the ones taking advantage. A flat tax with absolutely no deductions will increase revenue. If the services are provided to those in need it will be extremely progressive… Read more »
Tom, I don’t know if you’re a right winger or not. (I will note that there are plenty of right wing Democrats, and even more Democrats who are progressive on some issues and right wing on others.) But if you’re not right wing, that’s a hopeful sign that you’ll abandon this whole ‘flat tax’ boondoggle, because the “flat tax” is unquestionably a right wing idea. The progressive income tax is one of the most important parts of the New Deal that we’ve managed to incorporate into our economic structure. The reality is rich companies and rich people do not pay… Read more »
any legislative discussion that leaves Defense spending off the table–which has risen 80% in a decade–is about pennies and nickels in the upholstery. No argument with Tom on military pay, but R&D into weapons that are totally worthless in modern reality has to stop. Silent bombers made of rare, secret materials invisible to radar are of no use against an enemy with bombs in its underwear and shoes. When will we start napalming poppy fields? Current opposition in the world for a Navy at “readiness” requires no more than 1975 technologies–exactly which terrorist state is launching missiles and submarines? For… Read more »
Rock on Tom. I’m with you.
This is a very logical plan to me. I would add increase investment in research and technology, the fuel behind profitable innovation.
Also, I’m curious why these are considered men’s issues?
I think we might actually be able to get our budget fixed if we had less of a polarized fight between male leaders and instead had more women participating in these debates, which they have a tendency not to do when issues are considered “men’s issues” that are really of broader concern.
Especially in Gen-X and younger people, many women earn their own way in life – contributing 40% of family incomes on average, which is likely to increase in coming years.
Get rid of the Bush tax cuts. For one…
I’d add to this list – which is a good one – getting rid of our regressive tax system. The people with highest incomes pay (on all their income) an effective rate of as little as 15%, which is lower rate than all but the very poorest in our society pay. For example, in a recent year, Warren Buffet paid at a 17% rate and his receptionist at a 30% rate. This is not just a phenomenon of the payroll taxes (Medicare and Social Security) being capped, but also a direct result of a very low cap gains rate 15%… Read more »