“Amendment 10 The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”
To reduce the national debt, the federal government must begin plans to pull back from spending federal dollars on activities that are reserved to the States, or the people. This would limit federal responsibilities to only those outlined in the Constitution and should include the transfer of federal lands to the States. This would involve the closing of many federal departments and the consolidation of others. Shifting these functions to states would reduce federal spending by $ 1 trillion a year. Legislation should be passed in 2010 to begin this process. The immediate goal of the process is to take federal spending down to match federal revenue from current sources. An acceptable level of spending revenues from income tax and other sources for the next 2 years would be $2.9 trillion and would decline thereafter with the transfer of responsibilities to the States and should eventually include reductions in income tax rates.
A National Sales Tax should be established to pay down the National Debt and close down Social Security and Medicare. It will take $1 trillion a year in principle and interest to pay down the national debt plus up to $1 trillion a year to fund the Social Security and Medicare payouts.
Social Security and Medicare should be replaced by sending the 15.3% of earnings to individual, self-directed IRA accounts for all citizens who have not yet earned any income. Social Security should be maintained for those who have already paid in to the system and funded by the national sales tax.
This strategy coupled with eliminating company-based health insurance and lowering business income tax rates would enable us to reduce costs to business. We would be the only developed country without burdensome taxes.
To restore control of our government to the people, campaign contributions will necessarily need to be restricted to registered voters in the candidates’ city, district or state.
Saturday, March 20, 2010
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