What are we going to do?

I think we are in the midst of a critical time in our history.   For starters, President Obama failed to push the Bowles Simpson plan for deficit reduction.  The plan was big and bold although somewhat light on entitlement reform.  Nevertheless, it recommended tax reform which included lowering the rates but eliminating most of the loopholes.  Everyone agrees that our tax code is costing billions of dollars in revenue and is simply unfair to those of us who do not have the lawyers and lobbyist to bribe our elected officials.  In spite of a consensus to reform the code, no one, including the President, is moving towards that end.  Reforming the tax code would mean, among other things, that companies like General Electric would pay corporate taxes and the rich would pay more.  We keep hearing that the problem is so complicated that it cannot possibly be resolved in the near future.  So the matter was put on the back burner.  It is like putting off cleaning your room because it is too cluttered. 

Next, the real reason tax reform is dead is that solving complicated problems don't garner any votes in the next election.  During any six year period, the President has to be concerned about an election every four years, House members every two years, and Senators every six years.  Raising money for the next election begins as soon as the returns are in.  This leaves little time to tackle serious issues.   Getting elected or reelected seems to be the real job description of our politicians.  If any governing takes place, it is merely coincidental.  Take for example Super Pacs.  Last week, Obama reversed his position on taking money from these pacs.  In 2010 he said that these Super Pacs were a threat to our democracy.  This year he says he needs the dough to win the election.  I guess Obama will worry about the threat again if he gets reelected.  Great example of our democracy taking second place to money.  

Consider the issue of a budget, despite the law requiring both Houses of Congress to pass a budget every year, it has been over 1000 days since the Senate passed one.  Obama's new Chief of Staff said on Sunday that the reason the Senate has not passed a budget is the requirement of 60 votes. Apparently, no one informed Mr. Lew that this talking point doesn't fly since passing a budget takes only 51 votes and the Senate has 51 Democrats and 2 Independents who vote with the Democrats.  The Democrats have had a majority over 1000 days.  No budget means no criticism of Democrats, a threat to reelection.  On Monday, President Obama rolled out his 2013 budget.  Those on the right see it as just a campaign tool. Those on the left see it as a way to rally voters to reject the Republicans in 2012.   Everyone knew the budget would be dead on arrival but this was only the latest in a series of Obama proposals that would never become law but would drive up his base. These political games really are a waste of taxpayer money: reams of paper being generated to no end; lots of fuel being burned to transport the President from one swing state to another to deliver his latest message; and politicians getting a paycheck. I am beginning to wonder if we need politicians at all.  If you are not in the military or wealthy, has your life been truly affected by anything these politicians have done over the last year?  I don’t think so.  In fact, the death of one of the greatest singer in the world touched more lives in a single day than Obama, John Boehner, and Harry Reid touched over the last two years.  Oh, I forgot, wage earners did get an extra $20.00 a week in their paycheck.  Unfortunately, this extra money is temporary and will eventually come to an end either before or after it is repaid to the Social Security Trust.

On April 15, 2012, the IRS will collect tax revenues.  If every politician took the next year off, people would still get their Social Security and SSI; health care providers would get their Medicare and Medicaid reimbursements; and Veterans would receive their benefits.  Most of the agencies, including Defense, would continue to function. Of course, political pundits would have to look for another line of work, cable news outlets would temporarily freeze up, and late night comedians would have to come up with some new lines.  But it would not be the end of the world; in fact, it might just be the beginning of something new.

Can we look to any point in history to help us figure out what are we going to do?  Ron Paul is on the right track when he says something has been fundamentally wrong with our system for a long time but judging from his all over the place rhetoric, I don't think he really knows what it is.