Last week I suggested a Constitutional re-think was needed to help us put our government (and country) back on track. Here first is my reason why this approach is needed, and then a rationale for the Amendments I suggested. Thank you for your emails - it's been a great conversation!
If you run a business, you know that it is possible to take shortcuts and even break rules/laws to realize short-term gains; and you also know there ain’t no such thing as a free lunch.
Can you get back on the straight and narrow after an ill-gotten gain? Sure, but the longer you wait, the harder it gets. Cheating quickly becomes habit-forming; we get used to any (even bad) behavior, and soon it becomes the accepted norm.
Nowhere is this more true than politics. There was a time when running for office had a higher purpose; it was a calling to public service steeped in honor and integrity; one derived satisfaction from knowing that the greater good had been served.
As the business/economic value of having a politician in one’s pocket has grown, so has “investment” in elections and lobbying. Companies and individuals with vested interests spend absurd amounts of money financing candidates. For the upcoming election only (not all Senate seats are up for election), and as of June 30, the incumbents and their parties have raised $2.1billion (see below, source). They will of course raise much more in the weeks/months to come, bringing the total to well over $3 billion.
Even those that donate $1.00 expect something in return -- it could be supporting or opposing abortions, gay rights, gun control, raising taxes, a stronger military, public health care, or whatever. But there is an expectation of specific behavior in exchange for the $ (and the vote).
I wonder what these (see table, source) organizations expected (and received/will receive) for their contributions? Solyndra’s primary investor and executives donated $87,050 to Obama in 2008 - did this contribute to their $535 million federal loan guarantee?
Politicians seek and wish to remain in power above all else. It is in their interest to “cater” to their supporters. The ROI for these supporters has to be tangible enough to warrant the $ billions invested, so lawmakers add “helpful” riders/earmarks, or amend tax laws with credits/deductions; all to assure funding for the reelection, and maybe a nice post-politics job as a lobbyist or consultant.
What price do we the people pay for this pandering?
Over the last ~50 years, politicians have perverted the election finance, law-making, and taxation processes to the point where you can’t even excavate back to see what they looked like in the 1960s. The paybacks have resulted in layer upon layer of legislative morass, spending excess, political polarization, and voter disaffection.
What we now know to be “government as usual” is a horrible perversion to those who knew it in the 1950s and 60s.
It’s easy to overlook government excess as an acceptable “success tax” in good times; but in bad times the morass impedes action, the excess creates debt, the polarization becomes hate, and the disaffection turns into economic dysfunction.
Welcome to the America 2012.
So how do we fix this? With three Constitutional Amendments to overcome both the issue of financed politicians and the resulting morass.
The premise: reduce (if not eliminate) the need for campaign financing, make it more difficult to “repay” prospective “investors” by creating greater transparency within the law-making and taxation process. This streamlining or legislation and taxation, might then spur business-led economic growth.
Below is a summary of the proposed amendments with commentary.
- Election Reform:
- Term limits - President 1-6yr, Senator 2-4yr, Congress 3-2yr.
- The White House should lead knowing they will never campaign again -- only then can they act in the best interests of the country.
This is how we avoid the 2008 Republican #1 priority of preventing a second Obama term vs. governing.
- Politicians must feel a sense of urgency to make a difference vs. making a career of winning elections.
- The White House should lead knowing they will never campaign again -- only then can they act in the best interests of the country.
- Election finance - Only public $ ($0.50/voter); no private or corporate $.
- To win in the 2010 election, House members needed to raise $13,461/week to fund their reelection; Senators needed $27,243/week. This is why they got NOTHING done.
- This is how we even the playing field and allow the President and Congress to govern, vs. becoming professional fund-raisers, and reduce the power of lobbyists.
- Congress & President/VP’s tax returns must be public until death.
- Public service is not about lining your pockets, now or in the future.
- Term limits - President 1-6yr, Senator 2-4yr, Congress 3-2yr.
- Legislative Reform:
- Scope - laws/bills must be understood and explained by 5 random high school students in one week; they must only deal with ONE problem (no riders, addenda, etc.), and all sources and uses of funds must be enumerated.
- The Patient Protection and Affordable Care Act for example is 906 pages long - it is complex and can not be understood by a typical citizen. We must reduce legislative complexity and obfuscation, and clarify the funding of all expenditures.
- If the Bill requires enforcement, that cost must be included and paid for.
- Any citizen can challenge a bill with the 5-student-test.
- It reduces (if not eliminates) the ability to “hide” payback to lobbyists, funders, etc.
- A side benefit could be an incentive for Congress to improve education, thereby enabling them to create more complex legislation :-)!
- All laws (past, present, future) expire after 2 years; they can be renewed (provided they comply with #1); if not renewed on time, they expire by default.
- This creates fewer, simpler, more enforceable, and more modern laws.
- Congress is obligated to work vs. obsess with wreaking partisan havoc (or raise $$).
- Accountability - Congress must pass a budget on time every year, if they fail, all 535 members’ wages and benefits are garnished.
- Nuff said :-).
- Scope - laws/bills must be understood and explained by 5 random high school students in one week; they must only deal with ONE problem (no riders, addenda, etc.), and all sources and uses of funds must be enumerated.
- III Tax Reform:
- Flat tax at source, zero deductions (includes tax, Social Security, Medicare, etc.).
- Taxed at source, no deductions means employees with a single source of income (majority) won’t need to file returns -- it’ll be automatic.
- Personal: 0% on 1st $50k, 15% on next $50k, 25% on next $100k, 40% on balance.
- As government becomes more efficient and debt free, these rates should go down.
- Corporate: 3.5% of gross income - no exceptions or deductions.
- Notwithstanding the arbitrariness, companies will prefer the clarity and predictability vs. today's complexity and randomness.
- Flat tax at source, zero deductions (includes tax, Social Security, Medicare, etc.).
Our country is fast approaching the situation Argentina faced in the early 2000s, and the one Greece faces now -- a feckless government bent on petty self-serving agendas that in no way benefit the citizenry.
The status quo is untenable.
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