Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy | TigerDroppings.com

Posted byMessage
CowboyPride
Oklahoma State Fan
Louisiana
Member since Oct 2012
136 posts

Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy


How should our nation balance significantly reducing our debt without stifling our crippled economy?

Is it possible? If not, which way would you prefer?

What debt reduction initiatives would be most/least damaging to the economy?







Back to top
Share:
jamboybarry
LSU Fan
I Putt Out
Member since Feb 2011
10536 posts

re: Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy


reformed military and entitlement spending

eliminate baseline budgeting

reformed tax code






Back to top
  Replies (0)
Alahunter
Alabama Fan
Member since Jan 2008
84907 posts

re: Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy


Reduce entitlements by a large margin.





Back to top
  Replies (0)
GumboPot
LSU Fan
Saints Fan
Member since Mar 2009
24076 posts

re: Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy


quote:

How should our nation balance significantly reducing our debt without stifling our crippled economy?


1.) Get rid of baseline budgeting and COLA standards.

2.) Don't allow the national debt to go above 25% of GDP.

3.) The limit to budget increases each year will be based on the previous years GDP percent (decease/increase).

These principles form a framework for a fiscally sustainable nation where the private sector can produce enough to support a public sector and where a public sector is not too overbearing on the private sector. A "balanced approach" if you will.







Back to top
a want
LSU Fan
North America
Member since Oct 2010
9519 posts

re: Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy


Roll back Bush tax cuts for everyone but phase in over 5 years BUT tie in incentives for congress so that if they follow through on pre-agreed to spending cuts, the Bush tax cuts can be phased back in or not removed in the first place. In other words: congress has an incentive (voters want their taxes lowered) to follow through with the cuts. If they don't, taxes go up.

Spending cuts: Raise retirement age (SS), medicare eligibility age. Over a period of a decades reduce the size of military by 15 % or so. Gradually decrease budgets to governmental agencies.






Back to top
a want
LSU Fan
North America
Member since Oct 2010
9519 posts

re: Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy


Ah - here is is

quote:

What we need to do is to commit today to a transition -- a ramp -- from our current taxing and spending policies to a more sustainable mix. A firm congressional commitment, for example, to a three-year ramp, by means of which we move to a sensible combination of higher taxes and lower spending, should enable the economy to heal while reassuring markets that the long-term fiscal health of the country will be restored.

Of course, advocating a three-year transition from where we are to where we need to be is the easy part. The real challenge is to identify the new policies.

A bona fide "grand bargain" might need to encompass as much as $8 trillion in lower spending and higher taxes over 10 years to address fully the underlying fiscal trends, not the much smaller numbers currently bandied about. Figuring out how to do that will be extremely painful for Congress, because regardless of party affiliation, members like to give more than they like to take away


quote:

First, let all the Bush tax cuts and other temporary tax discounts expire (which is what legislative inaction will trigger on January 1), but phase in the expiration of the Bush tax cuts over three years (so that a third of the extra tax bite is added each year). At the same time, repeal the $1 trillion of new across-the-board spending cuts (the "sequestration") to which Congress committed itself when the budget "supercommittee" failed.

These two steps define the ramp. The repeal of the spending cuts adds to the deficit but is far outweighed over time by the incremental taxes that would be raised if all the Bush tax cuts expired.

The nonpartisan Congressional Budget Office projects that those higher tax revenues largely solve the deficit problem over the next 10 years or more. The resulting tax system can simultaneously be improved, for example by eliminating the hated Alternative Minimum Tax, without any further revenue costs through a few surgical strokes I have advocated before.

Then, let Congress do what it does best, which is to cut taxes starting three years from now -- but with a catch. The deal must be that Congress bind itself in advance automatically to apply new spending cuts (compared with the budget office's projections) to tax rate rollbacks. So, for every $1 billion reduction in government spending, Americans' tax bills automatically would be cut by $1 billion.






Back to top
  Replies (0)
CowboyPride
Oklahoma State Fan
Louisiana
Member since Oct 2012
136 posts

re: Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy


quote:

2.) Don't allow the national debt to go above 25% of GDP.


Anybody know what it is currently?






Back to top
jcole4lsu
Virginia Fan
The Kwisatz Haderach
Member since Nov 2007
26883 posts

re: Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy


why on earth would you want america to be debt free? we arent a fricking 9 to 5er family





Back to top
tigeraddict
LSU Fan
Baton Rouge
Member since Mar 2007
4708 posts

re: Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy


quote:

Roll back Bush tax cuts for everyone but phase in over 5 years BUT tie in incentives for congress so that if they follow through on pre-agreed to spending cuts, the Bush tax cuts can be phased back in or not removed in the first place. In other words: congress has an incentive (voters want their taxes lowered) to follow through with the cuts. If they don't, taxes go up.

Spending cuts: Raise retirement age (SS), medicare eligibility age. Over a period of a decades reduce the size of military by 15 % or so. Gradually decrease budgets to governmental agencies.



would like to see is move away from a income tax, and move to a consumption tax, or a national sales tax.

to cut spending you have to hit the biggest areas to have an impact: Entitlements and military. Any plan that doesn't touch both will not work.

I agree, phased in SS retirement age, for those 55 and below. change cost of living to every other year instead of yearly. but you have to attack the growth in spending






Back to top
  Replies (0)
GumboPot
LSU Fan
Saints Fan
Member since Mar 2009
24076 posts

re: Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy


quote:

Anybody know what it is currently?


106%

Historically the economy performs bests when the debt to GDP ratio is 15 to 25%. See the Rahn curve.






Back to top
jcole4lsu
Virginia Fan
The Kwisatz Haderach
Member since Nov 2007
26883 posts

re: Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy


quote:

106%

we are so fricked its not even funny






Back to top
  Replies (0)
CowboyPride
Oklahoma State Fan
Louisiana
Member since Oct 2012
136 posts

re: Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy


quote:

why on earth would you want america to be debt free? we arent a fricking 9 to 5er family


Don't get caught up in semantics. debt free, manageable debt, less debt, choose what you want.

If you don't know why this is an issue do some mild research.







Back to top
  Replies (0)
CowboyPride
Oklahoma State Fan
Louisiana
Member since Oct 2012
136 posts

re: Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy


quote:

106%

Historically the economy performs bests when the debt to GDP ratio is 15 to 25%. See the Rahn curve.


Good suggestion maintaining 25%. But the question is how to get to 25 form 106?






Back to top
  Replies (0)
BugAC
LSU Fan
Baton Rouge
Member since Oct 2007
18436 posts

re: Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy


quote:

How should our nation balance significantly reducing our debt without stifling our crippled economy?


Reduce entitlement spending. Eliminate Obamacare, and allow insurance companies to operate nationwide, therefore breeding more competition.

Allow the keystone pipeline, and relax federal regulations across the board.

End government-union deals. This would allow for more efficient and cheaper costs. Allow unions to bid on projects, but they must compete with private companies.

Stop funding green energy companies. If you want to fund an energy company, do accountable research on that company. Blanket 100 million dollar deals should not be given to any company, like Obama has been doing.
Reduce capital gains and corporate taxes. Allow for a business friendly environment and allow for businesses from overseas setup shop, providing more jobs in the US.
Audit entitlement spending. This will cost more upfront, but in the end, will help to eliminate entitlement fraud.






Back to top
BigJim
LSU Fan
Baton Rouge
Member since Jan 2010
2429 posts

re: Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy


quote:

why on earth would you want america to be debt free? we arent a fricking 9 to 5er family




If we need short-term loans for cash flow reasons, or long term debt tied to specific projects (particularly infrastucture projects) that's one thing. And honestly we are large enough that I don't think we even really need to do that.

We are borrowing for operating costs and that's just crazy.






Back to top
BugAC
LSU Fan
Baton Rouge
Member since Oct 2007
18436 posts

re: Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy


quote:

We are borrowing for operating costs and that's just crazy.



Exactly. We have the largest economy in the world. The largest economic power should not be borrowing money to pay off it's debts. It should be the lender. The fact that the greatest economic power in the history of the world, can't fund it's own operating costs tells any thinking human that we have a problem in spending. Can anyone deny this?






Back to top
  Replies (0)
cahoots
LSU Fan
Red Stick
Member since Jan 2009
1966 posts

re: Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy


All of that talk of cutting govt spending with no mention of the defense budget?





Back to top
los angeles tiger
LSU Fan
1,601 miles from Tiger Stadium
Member since Oct 2003
55976 posts

re: Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy


Entitlements never should have come to being. They were a political ploy used to "give" and "provide" when that is not the governments responsibility nor given authority to do so. That's what charities and the aid societies of the 19th century do and do a helluva better job.

Politicians use it for power, not ever caring about the people they claim to care about but use it for themselves.






Back to top
  Replies (0)
braindeadboxer
LSU Fan
Utopia
Member since Nov 2011
5015 posts

re: Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy


quote:

All of that talk of cutting govt spending with no mention of the defense budget?


Actually its been mentioned 2-3 times so far on the first page.






Back to top
  Replies (0)
Ace Midnight
LSU Fan
Ball, LA - Home, Sweet Home
Member since Dec 2006
29192 posts

re: Creating a Debt Free America Pt. 2 - Balance in a Struggling Economy


quote:

How should our nation balance significantly reducing our debt without stifling our crippled economy?


First - the spending, deficit and debt

1. Set spending limits to roughly correspond to historical rates of revenue

2. Restore federal spending to Constitutionally proscribed federal functions and get out of the business of clothing, housing and feeding indigent people

3. Work to reduce the total debt to no more than 2.5x that of receipts and, even a 15 year payoff plan would probably suffice.

4. Once the debt is retired, only incur debt for legtimate national emergencies (rather than pay for votes now, for tax receipts that will have to be levied against current voters' grandchildren).

NOW, the economy:

1. Federal spending should never be used to "stimulate" the economy

2. If federal spending was limited to infrastructure (legitimately needed projects, not pork, union paybacks, graft, etc.), providing for the common defense, federal courts, facilitating interstate trade and SOME (I'm not an anarchist, - some regulation is necessary, but it should be viewed as a necessary evil) regulatory functions, the private sector would be awash with money and there would be little need or desire to "stimulate" the economy. Instead, as it is now, money gets scooped up in a bottomless vacuum in D.C., much of it is wasted and what is left is parsed back to preferred states, regions, businesses and projects in order to buy people's votes with their own money.


(Does that about cover it? It's never going to happen, but that's the approach I would take.)



This post was edited on 1/23 at 1:07 pm


Back to top
  Replies (0)


Back to top