A COLUMN DIVIDED: Compromise needed in fiscal crisis
From the right: Casey Saxton
Our national debt ticks up every day. Our nation is now more than $16 trillion in debt with no plan to tackle the problem. When the time comes, I imagine Congress will raise the debt ceiling one more time so we do not default on our obligations. I am disgusted with Republicans and Democrats alike for the pathetic fiscal situation where our nation currently finds itself.
The looming question is: Where do we go from here?
Democrats propose to raise taxes on only the wealthiest Americans as a way of bringing more money into the U.S. treasury. Republicans oppose this by saying this will largely hurt those who employ others and could lead to a larger unemployment rate than we already have.
Republicans propose lowering tax rates to ensure that Americans keep more pay, thus increasing spending throughout the sectors of our economy, which they argue will eventually broaden the tax base. Democrats oppose this by saying this simply benefits the wealthiest Americans.
Democrats refuse to act to reform our going-broke entitlement programs while Republicans refuse to have a penny cut from the bloated national defense budget. Entitlements and defense make up the great majority of the United States budget and each are treated as a golden calf for the corresponding parties.
Neither party seems to budge on these issues. What does it mean? Gridlock.
I don’t know what the solution is for our country, and it seems even the nation’s smartest don’t have an answer what both sides of the political spectrum will agree to. I do know one thing though: Everyone is going to have to give a little. Given that fact, I’d like to see the so-called “Mack Penny Plan” examined more seriously. In this plan, Rep. Connie Mack has proposed cutting the national budget by one percent each year. The plan would require Congress to cut spending for six years by one penny for every dollar the government spent the year before.
Two reasons I’d like to see this plan looked into further are first, it is simple and easy for people to understand and second, it would require every single area of the federal budget to become more efficient. Surely every department and program could learn to do without one penny from every dollar they receive.
Obviously when you start looking at this in the context of the massive budget the country has, those pennies add up fast. The cuts would be as minimal as possible, not singling out any program or department. This plan is a least a fresh idea that deserves another look.
Our leaders have a lot of work to do to save our country from falling into financial ruin. I hope pride will be put aside and those we elected to represent us can come to an agreement on how to get our financial house in order before things get worse than they already are.
– Casey Saxton, a sophomore majoring in business administration, is the president of the USU College Republicans. He can be reached at caseysaxton@hotmail.com.
From the left: Mike McPhie
Moving beyond the election, the attention of the political world turned quickly to the financial predicament approaching with the end of the year as a number of provisions and expenditures are set to expire. The cheerful euphemism “fiscal cliff” illustrates the gravity of the political and economic challenge facing us. Our approach to the budget needs to be threefold: reform the tax code, cut spending and increase revenue.
The top-down approach to tax cuts has failed, leaving behind it trillions in lost revenue, no job creation and economic inequality rivaled only in third-world countries. While low taxes are necessary for the middle class and small businesses that shape the economy, the Bush tax cuts for the wealthy must expire. No one serious about cutting the deficit can overlook this enormous expenditure. Historically, the times of great economic prosperity have also seen the highest rates for those with the highest income. Additionally, tax loopholes and exemptions need to be closed. Between exaggerated deductions and willful tax evasion, the government loses around $400 billion which could be used to reduce our debt.
As the economy recovers, we need to focus on lowering our deficit by reducing spending on federal programs. From discretionary spending to defense, many agencies can find more efficient ways to achieve their goals. However, with any cuts, we must be conscientious not to be overzealous and incur long-term disadvantages. We must protect the policies which guarantee a return on investment and future revenue, such as education, clean energy and the social safety net. If we cut too drastically, we will find ourselves without the tools to ensure economic growth.
By reforming the tax code and making programs more efficient, more revenue can be generated for paying down the debt and deficit and funding the functions that keep the country prosperous. Ending exemptions and perks for big corporations and selective industries will go a long way in creating a fair and responsible budget. Tightened financial restrictions are also imperative to prevent the recklessness on Wall Street which crashed the world economy in 2008.
Politically, the fiscal cliff presents a challenge and an opportunity. The election was a major victory for Democrats on all fronts, indicating strong support for their policy agenda. While they hold the upper hand and the backing of the voters, it is important to approach the situation with a balanced approach. Truth be told, a compromise between Speaker Boehner, Sen. Reid and President Obama would be a significant victory for the political system and important for restoring bipartisanship. Though I, like many, disagree with congressional Republicans, compromise is the essence of politics. Both sides need to be willing to give up something in pursuit of a moderate and beneficial result for the nation.
By facing the fiscal cliff with a balanced approach that reduces the debt, provides a fair and efficient tax code and protects our investments in the future, we can ensure a safer and more prosperous outlook for all Americans.
– Mike McPhie is a senior from Toole, Utah, majoring in law and constitutional studies. During the spring semester, he interned in Washington, D.C. Send him comments at mike.mcphie@aggiemail.usu.edu.