Deficit Debates (Part 3)

In the latest edition of the Deficit Debates, I’ve encountered three individuals questioning what should be next following the deal on extending the Bush era tax cuts.

Poster 3: What will deal on Bush tax cuts mean for the federal deficit?

Response: It will mean absolutely nothing. Government spending impacts the deficit. These tax rates have been in place for 10 years now. Government spending has exceeded the reduced rates when the spending should have decreased in parallel to the lower tax rates. The Republican controlled Congress blew through the debt (not taking the wars into account) with their spending, and the Democrat controlled Congress escalated that in less than two years. The tax rates aren’t the problem … Congress is.

Poster 4: Deficit commission’s work is finished. What happens next?

Response: Here’s a starter list:

1) Get the government out of state-level programs
2) REFORM the health care reform
3) Transition Social Security into a needs-based insurance program and not an entitlement
4) Scrap the income tax and replace it with a flat-rate wealth tax
5) With 4 in place, you can gut the IRS
6) In addition to 5, slash government jobs and departments that really aren’t necessary (such as the department of education)

The debt commission is just the tip of the iceberg.

Poster 5: yeah,lets get rid of the Department of Education,that way we can keep the children dumb so they will vote for Rethuglicans,great idea!!

Response: The Department of Education is a bloated money pit. You can slash most of the jobs, kill the management budget, and move the remaining functions of the Department under the Department of the Treasury (since they would be the ones responsible for managing federal grants). The small “Agency of Education” would set the national minimum standards for education and disperse federal grants to states based upon student population and the states’ economic condition. The states and school districts would be the ones responsible for ensuring students meet/exceed national standards.