Tea Party Debt Commission

We Need A Tax Code That Makes Sense

Mitt Romney’s tax rate continues to be the topic of much debate over whether or not he paid his “fair share”, but the fact is that this debate is backward. The debate should not be about if what someone is paying is fair, it should be about if the tax code itself is fair. To that end, the whole country should be in agreement that it is NOT fair.

In 1895 the Supreme Court of the United States declared the income tax unconstitutional. Since then, the Congress has overruled the court and consequently the tax code is currently 2,500 pages long; nearly 7 times the length of the bible. Not only is this insane, but it is truly unfair!

The tax code is full of holes, punishes success and even punishes inheritance after a family member’s death! It needs to go. The Contract From America seeks to change this. We want to enact real tax reform, and make the code flatter and fairer. Less people would point fingers about others’ tax rates if they fully understood the tax code and felt that everyone was treated fairly, something which currently can’t be said.

Following Europe Will Lead To Collapse

In the Eurozone Spain is bracing for yet another round of painful austerity as a result of its unsustainable debt. These cuts will cripple entitlement programs that people built lives around, they will cause a spike in unemployment, and put the national security of its people at risk. This is the path big government takes you down; ballooning debt, then a crash where the bottom is not discernable.

Then why does this administration feel that the best way to fix our problems at home is to follow the same path that Europe has? Our budget deficit continues to balloon with no signs of stopping or slowing down. Historically when a nation’s debt reaches 90% as a share of GDP, economies will stagnate. Currently we are at 70% and will hit 90% in under 10 years.

This is unacceptable and can be avoided by adopting the Contract for America’s terms to pass a balanced budget amendment. This amendment will ensure spending does not accelerate at the rate it currently is and spending growth will be capped as a percentage of GDP.

Until this amendment is passed, politicians will continue to tax and spend faster and faster. When money is not coming physically out of their pockets they see no reason they can’t spend it. American government deficit spending needs to stop immediately.

NYT: The Tea Party Plans Its Own Debt Panel

By Kate Zernike

While the Tea Party movement has led the charge for cutting the national debt, its supporters have often struggled to explain how, exactly, they would do so.

Now some are out to change that, joining a Tea Party Debt Commission that plans to hold hearings over the summer, in the hopes of delivering recommendations to lawmakers by January.

The commission is being organized by FreedomWorks, the libertarian advocacy group that helped grow the Tea Party movement and mobilize it for the midterm elections. And its recommendations are likely to line up with the goals of that group, which in turn tend to reflect those of libertarian organizations like the Cato Institute. (FreedomWorks’ motto is Lower Taxes, Less Government, More Freedom, and it has worked against environmental regulations and for increased privatization of health care.)

“If you look if you look at the landscape in Washington, D.C., there’s a lot of Democrats who control two-thirds of the process who are now sitting on their hands, waiting to point fingers at Republicans who propose something, and there’s too many Republicans who are afraid that the public won’t understand a serious proposal to solve the budget deficit,” said Matt Kibbe, the group’s president.

“We think, like with the first days of the Tea Party movement, that the only way we will ever reduce the debt and balance the budget is if America beats Washington and Tea Party activists take over this process, take over the public debate and engage the American people in the hard work of making tough choices.”

FreedomWorks held training for about 150 activists from 30 states at its headquarters in Washington over the weekend, with sessions dedicated to educating them about the budget proposals by Senator Rand Paul of Kentucky and Representative Paul D. Ryan of Wisconsin, both Republicans who strongly embrace libertarian economic principles.

The activists, along with FreedomWorks staff, came up with parameters for their budget proposals, declaring that they would have to balance the federal budget within 10 years, reduce federal spending to 18 percent of the gross domestic product, reduce the national debt to no more than 66 percent of the G.D.P., assume that revenue accounts for no more than 19 percent of the G.D.P., reduce federal spending by at least $300 billion in the first year and reduce federal spending by at least $9 trillion over 10 years.

All this is a tall order; for example, the debt now equals nearly 100 percent of the gross domestic product. And with its limits on revenue — and the politics behind those limits — it is unlikely that the Tea Party commission will allow anything that looks like a tax increase.

The commission, to be formally announced Monday, is intended as a rebuke to the National Commission on Fiscal Responsibility and Reform that President Obama named, which delivered its recommendations last year. Those recommendations were met with generally negative reviews from both parties, who were unwilling to make the sacrifices that were called for. But the Tea Party commission is modeled after President Obama’s, in one way — it, too, will have 18 members (though this one is unlikely to be bipartisan, as the president’s was).

The members will be chosen from 18 swing states, and will hold hearings in those states over the summer, Mr. Kibbe said.

Continue reading at the New York Times