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Liberal Democracy

Liberal Democracy
The Free State

Saturday, December 15, 2012

FRSFreeStatePlus: Washington Times: Opinion: George Landrith: Clinton-Era Tax Rates But Not Spending Rates: Back To a Clintonian Fiscal Policy

LANDRITH: Clinton-era tax rates but not spending rates - Washington Times

Going back to the Clinton tax rates on the wealthy won't be enough to get the debt and deficit under control. Where its no longer growing faster then the economy and where we can actually start to begin to pay it down. We are also going to have to at least get back to the spending levels of the Clinton Administration as well. As they relate to the gross domestic product of GDP, when President Clinton left office in 2001, the Federal Government. Was spending at around 20-21% of GDP, now we are at 24%, so to get back to 21% and close the revenue gap. Where we are now at 15% of GDP and if we can back to 18-21% in taxes, we can start to pay down this debt and deficit. As long as we have strong economic and job growth with more Americans paying income taxes to go with it. Which would allow us to stop borrowing and returning to PAYGO, which is short for pay as you go. Meaning to raise spending or cut taxes, you would have to pay for both, if we do things like this, we can get back to Clintonnomics.

In order to do this, the wealthy are simply going to have to pay more in taxes, either going back to the Clinton rates. Or through tax reform but they are going to have to pay more in taxes and we are going to have the get the defense. Budget back to where it was in the Clinton era as it relates to GDP and we also need to make new reforms in entitlements. Going to have to make these programs more cost effective as it relates to Social Security and Medicare and the other. Social insurance programs, things like Unemployment Insurance or Welfare Insurance and got to Food Assistance as well. We are going to have to empower these people long term to be able to work themselves off of these programs. So they aren't on them as long and not collecting public assistance and working their way to the middle class. So they can start paying income taxes as well.

We have revenue gap to go along with spending more money then we can afford to payback, which means. We need to close the gap and cut the costs of the Federal Government to finally get the debt and deficit under control.