Originally Posted by pman10
Can't disagree with you on any of this, you've make your point quite well. I'm certainly not advocating more tax cuts, by the way.
The fact of the matter is, neither you nor I know what level of debt is sustainable or 'unsustainable'. And neither do any of the members of Congress, as we've seen in the last few months.
I would support short-term stimulus efforts (none of that Pork-barrel crap, but solid efforts at rebuilding and rejuvenating our crumbling infrastructure and education systems) if they were paired with SUBSTANTIAL reforms to entitlement programs, and if the Treasury could illustrate that we will not be at jeopardy of losing our bond rating or going into default.
And as I stated before, we need to look into strategies as to how to encourage private sector investment in America. We have these American corporations with hordes of cash, but none of them want to invest IN America. We need to foster this in a positive manner; I think SEZs should be strongly looked into. Public-private partnerships, like in other developing countries, might be another way to tackle the issue.
I'm glad to hear that we agree that more tax cuts aren't the solution. You are right, we don't know what level of debt is sustainable. Which is why we should increase revenue in order to slow debt expansion and buy ourselves more time for the REAL solution to our debt problem --- more jobs.
I could support entitlement reforms for the poor, if they were paired with tax revenue increases on behalf of the wealthy. If granny has to turn down the heat a few degrees in the winter in order to save our country, so should the top 10% of wage earners. And all the folks in between too. But this "cuts only" entitlement reform idea, as if we can fund the rebuilding of our country out of the shallow pockets of the poor, disabled, elderly, and unemployed, while leaving the deep pockets of the wealthy untouched is delusional. No country can rebuild itself using the money out of the pockets of their poor, disabled, elderly, and unemployed. The money just isn't there. If you are looking for money, you have to go where the money is. Looking where the money isn't won't help.
We definitely need to encourage private sector investment in America. I don't have a problem with Public-private partnerships, except when that means that the Profits are privatized, while the Risk is socialized. We've had too much of that already. If we are going to have Public-private partnerships, there need to be protections in place that strictly forbid the private side from profiteering and funneling wealth out of the partnership, leaving the debt to the gov't. That is what happened with Freddie/Fannie.
We have way too much Carrot incentives for businesses, and not enough Stick incentives. Tax haven zones are just another Carrot when we need sticks instead. We need to make it expensive for companies to close a factory in the US, instead of giving them a tax break to close a factory by letting them write off the cost of moving overseas on their taxes. We need to make it expensive for companies to move their corporate headquarters into a mailbox in the Caribbean. We need to make it expensive to renounce your citizenship in order to avoid paying taxes. We need to make it expensive to shuffle profits into offshore straw-subsidiary shell companies, and keep those profits offshore.