It has been said before that the issue that Congress is facing is not one of money but rather one of expenditure. It is my recommendation that an amendment be added to the constitution that would impose a tax rate adder (equal to the rate increase) specifically targeting all congressional members, their staff, and federal employees, with the exception of active-duty military personnel. This would serve as a way to prevent Congress from increasing the rates of income and capital gains tax.
In the event that the tax measure is approved by Congress and signed into law by the president (thereby increasing the income tax rate from 35% to 39.6%), the additional tax rate would be 4.6%, resulting in a total tax rate of 44.2% for all members of Congress, their staff, and government workers.
In the event that tax hikes are approved without corresponding cutbacks in budget expenditure, the amendment would additionally include a tax rate multiplier in addition to the tax rate adder. During periods of fiscal deficit, the multiplier would be at a higher value.
We have gotten ourselves into a difficult financial situation. Over the next ten years, each year's expenditures for Social Security and Medicare will increase by almost one trillion dollars. On the other hand, Mr. Trump has said that he does not want to reduce these programs, which brings his party into harmony with the long-standing position of the Democrats. In addition, Republicans will not agree to tax hikes. In the meanwhile, budgetary projections for military are far lower than what will be required to safeguard the United States in a world that is becoming more perilous. Furthermore, there will be no place for further domestic expenditure on young families who are already beginning to raise children. The route of least resistance, which is to increase expenditure without raising income, will make an already difficult financial position even more difficult to manage.
In addition to this, the United States of America has a civilization that is fast becoming older. In 1960, nine percent of the nation's population consisted of people aged 65 and over. This percentage is now 18%, and it is anticipated that it will increase to 23% over the course of the next three decades. There will be an increase in the expense of providing older Americans with basic income and medical security as the proportion of older Americans in the electorate continues to rise. There are probably not going to be a lot of older voters who will support a budgetary approach that would diminish their benefits.
A gradual loss of financial independence for the United States of America, followed by a sudden fall in economic activity, will result from continuing on our present budgetary trajectory. In order to service its debt, the United States will have to approach the rest of the world for assistance, and it would be irresponsible to believe that other countries would continue to do so forever. There is a possibility that nations on whom the United States depends may gradually withdraw their support, and then abruptly they will do so when some unexpected shock crystallizes their growing reservations. Herb Stein, an economist who passed away at the end of his life, once said, "If something cannot go on forever, it will stop."
It is imperative that we acknowledge the repercussions of these truths and immediately begin taking measures to ensure the financial future of the United States. It is imperative that leaders who possess vision confront these challenges in a realistic manner and convince the general population that they must either pay for the services they want or agree to reduce their funding for those programs. When presented with this option, I have a strong suspicion that people would demonstrate their support for the increased taxes that are required to maintain the stability of Social Security and Medicare for the foreseeable future, to assist families with young children, and to protect the nation from ongoing dangers.
As an alternative, one may adopt the mindset of Wilkins Micawber, a feckless character from Charles Dickens's book "David Copperfield." Micawber clung to the unrealistically optimistic conviction that "something will turn up." This day of reckoning will come, regardless of whether or not we are prepared for it. It is always simpler to put off the day of reckoning. We need to be ready for the storms that are yet to come while there is still time.
