Actions to turn our economy around

In the coming months, the super committee in Congress will be discussing actions that Congress needs to take to turn our economy around and reduce our debt. Some say there are no easy answers, while I believe there are several, all surrounding the concept of common sense. Common sense seems to be lacking, especially when we see tax money allocated to programs and projects that either do not make sense or are considered to be wasteful in terms of the results. Although many programs and projects are necessary and valuable, many need to be reevaluated and cut from the budget.

The first thing that should be considered by the super committee are the amount of regulations that have been imposed on businesses that are causing increased costs and reduced profits. The result is less money available to expand and increase jobs. I am not saying all regulations are bad, as we do need some, especially involving our homeland security and the environment.

In terms of our environment, some of the rules and regulations are forcing utility companies to close plants, since it would be too costly to have them comply with new regulations. This not only costs jobs, but reduces the amount of power available to meet the needs of communities. In evaluating the current regulations in place, the committee needs to determine what justifies the creation of the regulation.

There are also examples where regulations have been generated which appear to have no basis under the powers granted to the federal government in the Constitution. Examples of this situation have been discussed in news reports associated with the term cap and trade which has failed to gain enough support in Congress for passage. Regulations should only be issued involving such subjects as safety and the environment. They should not be generated to place more control on society than what is needed. Granted there are some gray areas for which the federal government has stepped in to meet a need and this may be appropriate in some instances. New regulations or rules seem to occur on a daily basis as evidenced by the number of documents which can be found in the federal register each day. The amount of regulations and their individual purposes should be analyzed to determine their need. Regulations need to be streamlined in addition to other departments and agencies within the government. Streamlining government organization should be one of the prime focuses that this committee should consider.

Another area which seems to be in the picture is what to do about our current tax structure. Several proposals have been initiated in Congress with no real progress in regards to what action should be taken. Our tax structure is cumbersome to say the least. Our tax structure needs to be simplified so individuals and businesses understand the tax regulations to avoid being in violation. Some proposals have been to raise taxes on the rich which has been determined to be any individual with an income over $250,000 a year. Raising taxes is not the right approach in the current economic times. Our tax structure is a major topic which should be a part of the end proposal from the committee. Some have indicated that lowering taxes will cause revenues to decrease, when actually history has proven this fact to be false. Revenues increased when taxes for individuals and businesses were reduced. One problem of our current structure has been that when asked, government representatives sometimes offer different answers when the same question is asked to multiple individuals. This statement does not mean to imply that bad answers are received by taxpayers, but that the rules can be interpreted differently from one person to another. This needs to change.

One major tax proposition which is gaining some support in Congress is what is called a Fair Tax and there are proposals in Congress today that are considering such a system. Other proposals include having a national sales tax and in return eliminating other taxes individuals and businesses now pay. The tax aspect of our economy will undoubtedly be a part of the proposal to address our economic situation from the committee, or at least it should be.

Other actions which should be a part of the end proposal submitted to Congress involve our energy dependence. Today we have large resources of all types of energy within our borders which are not being fully utilized. News reports have identified large reserves of oil and natural gas which some reports have indicated would satisfy our needs for several decades. The committee needs to ask why we not utilizing our own resources to lower the price of the energy we use and to spur the economy. While these resources are being tapped in some respects, the current regulations and oversight appears to be hampering this activity. One example is the oil reserves in the Gulf of Mexico. I understand the environmental concern, and proper measures should be taken to address them. Preventing the drilling of oil in the Gulf of Mexico and other areas of our country is costing jobs that could be providing revenue to fund the government. The current unemployment rate is high and our energy policy and our reserves should be reviewed to see how these can aid in reducing the price of gas we pay each day while providing much needed jobs. Using our own resources to provide an increase in the supply we need as a country will help to not only reduce the costs but will be a boom to the economy.

It is also true that alternative sources of energy need to be developed to meet our needs in the future and in some respects the needs of the world economy. Some foreign countries are tapping energy reserves to meet their needs that we appear to be either ignoring or at least not providing the resources and authority to tap them. New technology has provided an increase in the availability of utilizing our natural resources and it should be welcomed with open arms. It is clear there needs to be a clearly defined energy policy that identifies the resources we have and the need to develop additional alternative resources. This should be a part of the committee’s work.

Entitlements are sure to be another area to be addressed by the committee. These are a large portion of the expenditures of the federal government. In addressing this aspect, some entitlement changes will more than likely come from the committee. One of the entitlement programs is Social Security. The current projection of the Social Security fund identifies that the future expenses will exceed income. When this will occur has been a matter of disagreement based on data presented by several sources. This entitlement needs to be addressed while understanding that millions of individuals depend on their Social Security checks each month along with those who will be reaching retirement age in the near future.

Other programs include Medicare and Medicaid. These programs are essential for many Americans and without them their health resources and their health could suffer. While changes need to be made to these programs, the prime focus should be to provide the means to flush out fraud in these programs. In addition, the committee needs to look at the increased cost of healthcare and the root causes which are at the heart of the matter.

It is clear that the committee selected by Congress will face hard decisions to address our current economic crises. The topics presented and discussed are ones which need to be a part of any plan which comes out of the committee. Some areas involve major aspects of our economy, but to address real solutions to economic problems, they need to be faced head-on. It is hoped in the coming months that the public can provide some input into the considerations being made by the team. The decisions made will more than likely not rest well with everyone, but hard choices will be made. It is hoped this committee can come to a consensus on what needs to be done. Whatever the actions proposed, they need to use common sense to not only address the problems we currently face, but to do it with compassion for their fellow citizens. Politics should not enter the picture in trying to make one party have the solution as it is a bi-partisan committee and the forthcoming plan needs to have the impression of being bi-partisan.