Tags: bill | spetrino | economy | cuts.

Let's Make Deep Cuts Now So Economy Can Heal

By    |   Friday, 03 Sep 2010 10:26 AM

This is when everyone gets angry at me because I am somehow raising taxes for them or someone they know.

But shared sacrifice requires all people to give up something so the prosperity of this fine nation can be maintained.

My first idea is to cut every government employee’s salary by 5 percent and those government salaries above $125,000 by 10 percent.

The World's Greatest Dividend Stock on Sale Now — Click Here

All members in Congress, however, will lead by example and take a 20-percent salary cut. The pay for their staffs and budgets would be cut by 10 percent.

However, in years when the government runs a deficit above $500 million, government salaries in the next year will be cut by an additional 10 percent and congressional salaries will be cut by another 40 percent.

This will make government employees think twice before foolishly spending money or attempting to expand government.

However, in years when the United States has a surplus above $100 million, government employee salaries will increase by 15 percent during the next year from the previous year and congressional salaries will expand by 30 percent.

This idea will put government’s interests in alignment with the rest of the country.

My second idea is for any government official who is convicted of accepting any bribe to receive a 5-year prison term. They also should serve the first 3 months of their term in the general prison population.

Any member of Congress convicted of accepting a bribe will get a 10-year minimum prison term and will be forced to serve the first 6 months in the general prison population -- and not some federal prison with tennis courts.

Politicians and government officials should get harsher sentences than some poor scared teenager who steals to feed his family. This will guarantee that government workers will be less apt to sell their power and will think twice about doing anything dishonest.

My third idea is for a flat 15 percent “death tax” for all estates above $10 million, even if it is given to charity.

Warren Buffett talks about paying his fair share but skirts the estate tax with the bulk of his wealth. This behavior is incongruent and unfair.

If Mr. Buffett wants to give his $70 billion estate to charity, let the country get $10.5 billion and the charity get $59.5 billion.
If your estate is less than $10 million, why should you pay a 55 percent tax if you want to give it to your family, while the richest men like Bill Gates and Mr. Buffett pay nothing?

Under my plan, below $10 million, you would pay nothing.

You have been paying taxes all your life on the income.

This will help many farmers, small-business owners and savers who are the economic lifeblood of our county.

The elimination of the estate tax below $10 million will encourage more families to become thrifty and continue to be productive.

Under the present rules, your estate is taxed at 55 percent on its next after-tax dollar, which has already been taxed. That doesn’t sound very fair to me.

My final idea may upset some of you but the savings are needed.

Once you reach 75 years old, your Social Security payment is frozen and no longer subject to cost-of-living raises.

I’m not cutting anyone’s current benefits.

Like it or not, the country is $14 trillion in debt. I’m afraid that if these payments are not frozen, the entire safety net could be in jeopardy. Social Security was always meant to only supplement  your retirement income.

Please feel free to email me with any feedback, positive or negative.

About the Author: Bill Spetrino
Bill Spetrino is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He is also the editor of the Dividend Machine. Discover more by Clicking Here Now.

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
BillSpetrino
This is when everyone gets angry at me because I am somehow raising taxes for them or someone they know. But shared sacrifice requires all people to give up something so the prosperity of this fine nation can be maintained. My first idea is to cut every government...
bill,spetrino,economy,cuts.
647
2010-26-03
Friday, 03 Sep 2010 10:26 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved