Lanny Davis wrote an op-ed piece in which he outlined a plan to eliminate America’s debt in 10 years. His proposal is to cut spending and raise taxes. The means of taxation is a 1% “transaction fee” on every financial transaction. The only exception is the sale and transfer of stocks; isn’t that convenient since Wall Street is the one of the biggest contributors to the Democratic Party.
Rep. Chaka Fatta (D-Pa) introduced bill H.R. 4646 entitled “Debt Free American Act” in February. The bill is different than a VAT tax in that it allows for a 1% tax credit for couples who make $250,000 or less ($125,000 for singles). The Treasury Department will have discretionary powers for further exemptions that may accommodate the poor.
As for Mr. Davis’s optimism on cutting spending, the House of Representatives failed to pass a budget this year; instead they passed the buck onto the National Commission on Fiscal Responsibility and Reform. How can you expect to reduce spending when congress doesn’t have the courage to face their constitutional responsibilities? Do you seriously believe that they will adhere to the proposals of a national commission that would sacrifice their sacred cows? I don’t think so.
The proceeds of the “transaction tax” would be put in a lock box, which a group of “trustees” (more government bureaucrats) held the key. Congress and the Treasury Department supposedly wouldn’t have access to the largess. To ensure that politicians wouldn’t pass a law that would raid the fund (much like what happened to social security), Mr. Davis proposes that future lawmakers are to make a pledge not to touch the mountain of cash until the national debt is paid off.
Mr. Davis do you seriously believe a politician will keep his promise? I must say for a Washington insider you’re either naïve or playing us for a bunch of chumps. Considering your association with the Clintons, I’m betting on the latter.
If we really want to reduce the debt, we have to rediscover our founding fathers and repudiate the progressive movement. We can start by taking power away from special interest in Washington D.C. and bring it back to the states where it belongs. We can start by repealing the 17th Amendment and then abolishing the progressive tax system.
Source: http://thehill.com/opinion/columnists/lanny-davis/107351-a-debt-free-america-yes-its-possible
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