Fiscal Crisis Solution Worksheet

The impediment to solving the fiscal crisis is not a matter of economics.  It is a matter of process management.  Slim Fairview. From The Quotations of Slim Fairview. ©

  

"You can't lead if you can't manage."  Slim Fairview

Therefore, I've composed a worksheet to help Congress.

"Anything a Congressman has to say when the cameras are rolling isn't worth listening to."  Slim Fairview


First of all is the misalliance of ideology 

Some are calling for higher tax rates, others for increased revenues.  This begs the question, "Is this a matter of dollars or ideology?"

A. Tax Rates

How many dollars and from whom?

The Smiths earn $250,000 dollars a year, own their own home, and have a net worth  [Sell the house, pay the mortgage] of $50,000 dollars.

The Joneses earn $200,000 a year, own their own home, and have a net worth [Sell the house, pay the mortgage] of $500,000.

The Smiths?  Taxes go up?
The Joneses?  No tax increase?

Why do I ask? Because Congress didn't say.  And therein lies the problem. The people receive no information from Congress.

Fill in the blanks:


For standard income

Those making less than $20,000 a year:

How many?
What rate?
How much in taxes paid?

Those making less than $40,000 but more than $20,000.

How many?
What rate?
How much in taxes paid?

Continue, up the list until you reach the top.  Do this for the old rate. Do this for the proposed increase. Period! Publish the numbers.

Group 1.         Number of People          Tax Rate         Dollars Paid in Taxes

Group 2          

Get the idea?


Repeat the Process
 
Do this for Capital Gains.  The same process. Publish the numbers for all Americans to see.


B. Revenues

Those who want to close the loopholes.

Repeat the first part of the above for all taxpayers with current loopholes.
Repeat the first part of the above for all taxpayers with the proposed closing of loopholes.

Report the number of dollars that the Treasury will receive.


Now that we know who the money comes from and how much they pay, under the current system, and who the money will come from and how much they will pay under the proposed changes, there is little room for a Congressman or a Senator to hide.


Where will it go?  

The Deficit:  How much we bring in minus how much we pay out.  The government calls this negative earnings.  People call this a loss.  As it stands: How much we pay out minus how much we bring in.

The Debt:  How much we owe.

Whichever plan we embrace, or variation thereof, the people want to know something.  The absolute truth and in detail:

A.  When we increase revenue through taxes (the method notwithstanding) we will pay down the debt.

      Creditor.       The number of dollars.

1.
2.
3.
etc.

B. When we increase revenue through taxes (the method notwithstanding) we will increase spending:

       Programme        Number of Dollars

1.
2.
3.
etc.


Before Congress says another word about the Fiscal Cliff, they should draw up the grid, enter the headings, makes the list, and fill in the numbers.  Until then, they are nothing more than a gang of cigar-chomping party bosses in smoke-filled back rooms and derby hats cutting deals.


Warmest regards, 

Slim

slimfairview@yahoo.com

PS. If this is helpful, please don't hesitate to send me a really tricked out laptop and to tuck more than a few dollars into the envelope with the thank you note.  The GSA should be able to handle that nicely. Slim

 

Copyright © 2012 Slim Fairview

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