Last month the U.S. Congress passed, and the president signed, an omnibus bill to keep the federal government from shutting down. That bill, bloated with spending to appease Democrats and tax cuts to appease Republicans, will add $1.8 trillion to the U.S. debt, taking it to well over $20 trillion.
The bill reflects how both parties retain power: one increases spending, and one decreases revenue. It is the current paradigm of federal congressional politics, and it is sinking the United States into a debt crisis that is destroying the economic potential of our children’s future, destroying our relationships with creditors and weakening the country internationally.
While clearly tax cuts fuel economic growth, history clearly reveals that tax cuts alone never produce a balanced budget. The problem is not revenue. It is a spending problem, and the current paradigm of trading spending for tax cuts is killing America. Since the incentive to each party is to continue this destructive trend, a balanced budget amendment is the only solution to compel fiscal responsibility in Washington, D.C.
The problems and approach to government of Washington must never be permitted to take root in Tennessee. While the United States currently reports a debt of $18.79 trillion, most understand this is simply the summation of deficits and is the smaller problem. According to Jagdeesh Gokhale in a paper titled “The Government Debt Iceberg,” were the United States to accurately report its future obligations plus its current loans, the debt would be seven times $18.79 trillion, or $131.53 trillion.
The Volunteer State presents a balanced budget annually while rejecting the practice of taking more money from your paycheck in the form of increased taxes. Tennessee is consistently ranking in the top 10 among all states for the fiscal soundness of our spending and indebtedness, which includes future liabilities such as pensions, government entitlements and recurring spending. It’s our duty to not only be disciplined stewards of your money now, but to serve as the guardians for the future of our next generation, our children, who need jobs with as little government grabbing at their earnings as possible.
Niall Ferguson, in his book “The Great Degeneration,” writes about the social contract between generations. He discusses how those of us who can vote today are choosing to push sacrifices onto our children so we can live at their expense. “The mind-boggling numbers [of unfunded liabilities] represent nothing less than a vast claim … on their children and grandchildren, who are obliged by current law to find money in the future by submitting either to substantial increases in taxation or to drastic cuts in the form of other expenditures.”
According to Gokhale, to cover the unfunded fiscal imbalance, the U.S. must more than double the current federal payroll taxes. Yet almost all economists agree the devastating impact on economic growth means the net effect of such an increase would worsen the problem. On a federal level, we have failed our children… Read Full Article On Knoxville News Sentinel HERE.