The Budget Deficit by T.S. Khanna, April 21, 2011

The Budget Deficit, by T.S. Khanna, April 21, 2011.

Budget is the lifeblood of government. It is a reflection of government's power for what it intends to do. Budget deficit is a reflection of the government's power deficit. It is a sign that the government is consuming more wealth than it is creating. Uncontrolled deficit can eventually dissolve the government.
In many countries, the struggle is between the "Haves" and the 'Have-nots". Here, the core dispute is between the "Haves" and the "Have-mores". In no other country there are such elaborate entitlement programs as in the USA. Yet, there is greater dissatisfaction here. Money, facilities, and services are never enough, if they can be claimed as a cultural right without earning. In the USA, now such a culture prevails.
To make up for the deficit by the FY 2020, we need a 20/20 vision and bold action.
Until the deficit is eliminated:
1. Establish a sound philosophy for allocating the budget funds for humanitarian purposes, i.e., subsidized Entitlement Programs. Allocation of funds for humanitarian purposes may not exceed ten percent of the total revenue. The program priorities may then be decided within the allocated funds.
2. Encourage religious institutions to actively participate in charity programs, instead or participating in political activities in a camouflaged manner.
3. Nearly 45% of the US citizens pay no taxes, including some very wealthy. Their voting rights may be suspended until the deficit is made up.
4. Suspend all subsidies, tax deductions and loop holes, except in the most needed wealth creating cases.
5. Suspend voting rights of the wealthy who are not paying at least 20% tax on the gross income.
6. Make a uniform 20% flat rate of taxation for all regardless of income. It will stimulate greater economic activity and production of wealth. Progressive tax rate supersedes the law: "Equal Treatment under the law". That will also promote social integration and encourage the investors.
7. Establish a Fair Wages Commission to protect the labor from being exploited and the Unions highjacking the economy. Steps #6 & #7 will bring back the investors and the job to the USA.
8. The two parties may compromise to cut spending and raise taxes in equal amounts to eliminate the deficit within ten years.
9. Reduce the salaries and the perks of the Congress members (causing the budget deficit) by 50%.

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