CNN.com said: WASHINGTON (CNN) -- President Obama on Tuesday proposed making "pay-as-you-go" rules for federal spending into law. President Obama proposed Tuesday that the government adopt "pay-as-you-go" rules for federal spending. The so-called PAYGO proposal requires Congress to balance any increased spending by equal savings elsewhere, Obama said in announcing the measure that now goes to Congress. A previous PAYGO mandate helped erase federal budget deficits in the 1990s, and subsequent ineffective rules contributed to the current budget deficits, Obama said. Now the PAYGO rules should be the law, he said. "Paying for what you spend is basic common sense," Obama said. "Perhaps that's why, here in Washington, it's been so elusive." Republican leaders said the proposal comes after record spending initiatives by the Obama administration, such as the $787 billion economic stimulus program. Don't Miss "It seems a tad disingenuous for the president and Speaker [Nancy] Pelosi to talk about PAYGO rules after ramming trillions in spending through Congress proposing policies that create more debt in the first six months of this year than in the previous 220 years combined," said Rep. Eric Cantor of Virginia, the House Minority Whip. However, a group of fiscally conservative Democratic representatives known as the Blue Dogs called Obama's proposal responsible and necessary. "President Obama inherited an economy in free-fall and a $10.6 trillion national debt," said Rep. Jim Cooper of Tennessee, vice-chairman of the Blue Dog Budget and Financial Services Task Force. "While short-term spending was necessary to get the economy moving again, our long-term fiscal problems became that much more urgent." A White House statement said Obama's proposal calls for the Office of Management and Budget to maintain a ledger of the average 10-year budgetary effects of all legislation affecting mandatory spending or baseline tax levels. Any extra cost that lacks payment authorized by Congress would require the president to find money within the budget to pay it, while any tax cut would require a corresponding increase in tax revenue. Some costs would be exempt, including Medicare payments to doctors, the estate and gift tax, and tax cuts enacted in 2001 and 2002, the White House statement said.
As a citizen and taxpayer I suggest a variation of this:
PAYLOE. Pay As You Lower Outgoing Expenditures.
Not only must the balance be made between the proposed expenditure and existing programs but all of the programs must be reduced for financial security. The only way to get your project started is if you retire 115% of the debt from earlier projects.
I suggest a mandatory reduction and cap on all executive government pay at $60,000.00 per year adjusted only by inflation. This includes everyone from city mayors to president. If the current office makes less than the proposed amount the wage will be frozen at the current amount and only adjusted by inflation.
State and Federal sales taxes will be adjusted. All items and services sold will have a straight 7% sales tax nationally. Some states will be better off some states will pay more all sales taxes will be split between the State and Federal government at a 40/60 split favoring the Federales. The State and Feds will be responsible for maintaining a health care system that is a hybrid between private insure and State run regional suppliers (think BC/BS with federal backing operated state by state).
States have the right to waiver up to 50% of the business taxes brought into the state to entice new industry. The tax waiver will be in the form of a no charge premium medical coverage program instituted through the State branch of the Federal Health Care system as well as sales tax rebates on products sold and the remainder as an employment tax rebate check.
Multinational companies operating in the United States will pay the same taxes US based companies pay. Operation of off shore bank accounts by businesses or parties involved with the primary functions of the businesses run in the United States must submit annual earnings and savings statements to the IRS to llow for transparency. Any monies earned in the US invested abroad are still subject to tax, the profits from investment are not however as the profit was gained abroad.
There is more but I need to get to work...
