We are on the wrong path. We should take advantage of the dip in birthrates following the baby boom to end entitlements.
Cut government back to the original four: Justice, State, Defense and Treasury. Cut Defense back to pre-2001 levels.
This national government will cost about $600 billion/year (20 percent of current revenue).
Use 50 percent of the current $3 trillion revenue to fulfill entitlements for those above 45 years old except that those below 45 will no longer pay FICA:let them save for themselves.
Use 30 percent of revenue to pay off debt. Debt gone in 20 years. Entitlements gone in about 40 years. This would leave a $5 trillion surplus for a "rainy day."
Taxes then drop to below 5 percent of GDP. No loopholes, no deductions, no tax credits and no entitlements. A flat tax and everyone pays, no exceptions.
Government back in the hands of the people, not special interests.
Doing the same thing at the state and local levels will drop government spending from 40 percent to 10 percent of GDP. This will also increase the wealth of all Americans by putting 30 percent of their income back in their own pockets. Surely you know that when government says it will pay for a thing, the hands come out and the market cannot correct it.
Promise retirement cash and we stop saving.
Promise subsidized healthcare and costs skyrocket in unfathomable ways.
Promise subsidized college education and tuition goes up.
Promise minimum wages and prices go up.
Promise subsidized housing and the housing market craters.
Promise regulation and the frequency of financial meltdowns increases.
Promise free food and the number of recipients increases.
Promise union support and unions dominate the government workforce.
Promise more investment in K-12 and we fall further behind in world standings and now I pay nearly $20,000 a kid in Shelton when teacher retirement and ECS are added to local education spending.
Please, fix this. I can supply details upon request.
Martin N. Hoffmann
Shelton