Do you remember the Simpson-Bowles report commissioned by President Obama and delivered in December 2010. The final title is “The National Commission on Fiscal Responsibility and Reform” subtitle, “The Moment of Truth”. You can find the pdf here.
I’ve read the document and the Moment of Truth is filled with non sequitur’s and undefined statements. Such as “cut all excess spending” and “avoid excessive taxation”. What determines excess and excessive? It goes on like this with broad statements lacking any specifics.
I’m in agreement with reporter Michael Hiltzik who writes in the Los Angeles Times that the Moment of Truth is a tool for a deficit debate driven by the wealthy.
As I see it the problem is that both political parties have agreed this is the starting point for ‘FIXING’ the US economy. If this is where the new fiscal agenda starts then it will be done on backs of the elderly, the infirm, the low wage workers, and the shrinking middle class. Altogether now: Wrong Wrong Wrong, No F***ing Way
There’s many ways to fix our broken system outside of the Simpson-Bowles report. I could take the report apart point by point if there was adequate $$$ for my time but for now I’ll give you a few points.
1. Unregulated capitalism has allowed greedy liars and thieves to raid our Treasury and rape our democracy. As it appears our government is not going to prosecute the perpetrators (emphasis on traitors) I call for a separation of the gamblers from the banks by re-installment of the Glass-Steagall law. Agree #1. Agree #2.
2. “Goldman Sachs after securing a bailout of tens of billions of taxpayer dollars the bank moved its money around so that most of its earnings took place in foreign countries with low tax rates. Thanks to our corporate tax system, companies like Goldman can ship their revenues offshore and defer taxes on those revenues indefinitely, even while they claim deductions upfront on that same untaxed income. This is why any corporation with an at least occasionally sober accountant can usually find a way to zero out its taxes. A GAO report, in fact, found that between 1998 and 2005, roughly two-thirds of all corporations operating in the U.S. paid no taxes at all.” http://www.gao.gov/assets/280/278569.pdf
I call for a minimum tax of 20% on all corporate gross receipts by all companies, domestic and foreign doing business in the US. No exceptions.
The above quote by Matt Taibbi was gratefully snatched from one of his finest reports titled The Great American Bubble Machine
3. The interlocked dealings of the worlds existing financial companies has created a crap load of huge deals with highly leveraged assets many times based on false financial reports. Trust is no longer part of the equation because the companies making the deals never loose. Why? Because they are too big to fail. That has to stop. If they want to do a deal, OK, only with verified assets and insurance backing the deal. No more bailouts ever. If the deal goes bad, no do overs. After awhile the deal makers will come to know who is trustworthy.
This is a good article by Paul Davidson: Restoring Trust in the American Economy: The Real World v. The Confidence Fairy
Here is one definition: One Dollar Of Capital – A Definition And Challenge