Public Spending v/s Private Spending

December 17, 2009.

Public Spending v/s Private Spending
By T.S. Khanna

Over the years, each party in power (Democrats and Republicans) has been increasing the nation’s deficit. Democrats’ policy is “spend and tax” and the Republicans’ policy has been “spend and borrow”.

In the absence of any Constitutional restriction and accountability, elected officials are out of control. They are bankrupting the wealthiest nation, still with a potential of greatest productivity.

Without funds in the coffers, approval of entitlement programs, stimulus programs, deficit spending without limits, and taxation policies creates a class of persons who do not work and takes earnings away from those who do. For a faster and lasting economic recovery, private spending must be encouraged to replace public spending.

To redeem the nation, we need to
• Adopt a Constitutional amendment against deficit spending,
• Require strict accountability of the elected officials responsible for deficit spending, and,
• Limit the rate of taxation and apply the same flat rate, without loopholes, to every taxpayer regardless of the income.

“The meek shall inherit the earth”, but with the present and the impending increases in income tax, capital gains tax, inheritance tax, property tax, gas tax, and bridge tolls, nothing will be left for the meek.