What is the right approach to increase government revenue and reduce the deficit?
There is no doubt that there needs to be a revamping of the way the federal government manages our money. We have heard numerous reports that the bookkeeping methods concerning the allocation of funds to various departments and agencies is significantly lacking. According to some reports millions of dollars cannot be accounted for in a number of agencies. They are spending our tax dollars and we have a right to know how that money is being spent by all government entities.
Today it is also clear that the federal government is spending more than they are taking in and each year this occurs our national debt keeps rising. Increasing government revenue does not mean taxes should be raised on the contrary they should be lowered. When taxes were lowered in other administrations the result expected did not occur. Tax revenue actually increased.
Another aspect of raising government revenue is to have a common sense plan to create an environment where businesses want to hire and expand. Current regulations and/or laws are hurting our economy. In some cases this involves policy decisions or political philosophy. One example is our energy resources which we are not fully accessing as a result of government restrictions where they apply such as on federal land. In the private sector where states have control their economies are booming and their unemployment rate is significantly better than the national rate. These jobs are not low paying jobs but high paying jobs. As a result of these jobs in states where the energy sector is booming there has been a side benefit. While workers are needed for the oil industry there is also a need for other businesses to have individuals to fill their positions. This can only occur if the wages and benefits in some cases are high enough to draw workers in rather than the oil fields. Wages are higher in such companies as Wal-Mart and McDonald’s than any other part of the country.
The energy sector is just one area where our economy could be on the fast track to recover from our economic downturn. Granted some restrictions by government regulations are necessary to protect such things as the environment and employee safety but the number of these restrictions seems to be growing from one year to another. Government revenue would increase if there were more workers and the unemployment rate was lower. Turning this around has been met with different proposals from both political parties. Our founding fathers created the concept of a centralized government to support the country not control every aspect of it.
It is understood that the federal government and state government needs revenue to accomplish their responsibilities as identified in the applicable constitutions. The question to be answered is what sources should comprise the funds government receives. Taxes are clearly one example which fits this scenario but what kind of taxes should they be. Our tax code and regulations are outdated. Some may say this is a drastic statement to make but it is true. It is not business friendly and it needs to change. In addition to creating a business friendly environment it needs to be fair to all citizens. Each individual should pay their fair share but they should not be penalized for their success.
Creating a fair tax structure I agree is a daunting task but there are proposals in place which incorporate common sense philosophy. Common sense seems to be lacking at the federal government level and has been for several years. We have individuals now serving us in the federal government who like the way things are now and are resisting proposals that would benefit every citizen and our economy. Some say they support these kinds of changes but their actions or inactions project otherwise. This election year we must keep those individuals who clearly have their constituents and our country at heart and we need to give them the additional support they need to have the votes to pass legislation with the country in mind not their political party’s philosophy.
Some individuals are shaking up the establishment by standing on the principles on which this country was found including the authority of Congress as defined in the Constitution. Each individual takes an oath to support and defend the Constitution with respect to their positions but it is sad to say that this is not always the case. Individuals who we send to Congress this year should have a background of honoring the Constitution and the principles on which this country was found. Honoring the Constitution may result in a reduction of government expenditures for which there is no real authority written in the Constitution. Congress honoring the Constitution would be a welcomed change. It is up to us to make that change happen.