about the title Tax and Spend

Rarely do you hear "tax and spend" promoted by anyone anywhere. No one wants to pay more, but maybe its time we did.

Wednesday, July 20, 2011

Raise Energy Taxes

My original suggestion remains. For $1.00 a gallon we can replace nuclear power with solar before our nuclear plants age out. However " going solar " has almost no financial benefit to the consumer today. If not for government incentives solar would be a dead industry. Some may say that means " it's not ready.".

Electricity is .10 to .18 cent around the country per unit. Raise the thru taxes and solar becomes more viable, our government can spend less on solar subsidies and get more revenue. It's significant revenue too. Which our government needs to get this debt under control.

Friday, July 15, 2011

"Lets make a Deal"

This raising the debt limit thing is really crazy.  It reminds me of the TV program where Bob yelled "Lets Make a Deal."   Why bother?  In 18 months or less you'll be back discussing the same need, but for an election it will be put off until after.  The politician that said don't raise it once before will say raise it now if he's in charge (or she). 

For example I like Bachman, but she says no to increasing the debt limit.  Obama said no too as a Senator and begs for it now.  I suspect if Bachman was President she'd be asking for a limit increase very early in her term.  Mrs. Mistaken Mrs. Bachman, and of all the candidates I'll probably still vote for you because I haven't found another that makes any sense; including Obama.

We need a change from the status quo or it will destroy us. 

Wednesday, June 29, 2011

Its time for an Energy Policy

A Simple Energy Policy,

When George Bush Jr was elected President I had hopes an "oil man" would give us an energy policy.  His critics were abuzz in the fact he consulted "industry representatives and corporate types" on energy and environmental policies and nothing ever got done.  He got distracted by terrorist as well, but still ten years later we still don't have a viable energy policy.  I can only imagine how things might be right now if we had employed such a policy before 9/11.  Chances are it would be in full swing right now, and as a nation we'd be better off.   Here is a tax and spend policy because I simply don't believe you get something for nothing.

1.  We identify that we aim to use our natural resources instead of importing foreign sources from nations that don't see the world as we do.  Our goal in the first 5 years of this policy is to increase domestic oil and natural gas production to the point where foreign imports other then Canada and Mexico are reduced to nominal amounts if any.

2.  Next we realize that oil needs to be replaced as our primary energy source and that we could replace it with natural gas, but it would be better to replace it with renewable energy.  We thus put oil on a 30 year plan to reduce it from the major source of energy to an extremely minor one.  We recognize that natural gas is abundant, but not permanent.  As such we aim to make natural gas less important as an energy source in 50 years. 

3.  Renewable energy is where we want to go, but it is not affordable.  The simple solution is to put a dollar figure on its cost.  I'm going to say a "unit" of renewable energy costs $5.00 right now.  The unit is like "x" in a formula.  We need to raise taxes on gasoline at the rate of 1/10th a year for 10 years to make sure a "unit" of oil energy is priced at the same point.  For natural gas the tax increase would be 1/20th a year for 20 years.   This means in 20 years time a unit of energy for oil, natural gas, and renewable energy would all cost the same. 

4.  We pledge this new tax revenue from our "per unit" tax on oil and natural gas to renewable energy sources.  With no tax on renewable energy like there is on oil and natural gas, and the use of the revenue from the oil/natural gas taxes we can make renewable more desirable as an energy source by making it less expensive. 

The above solution will make renewable energy the right choice, and increase jobs in our country along with revenues for our government. 

Saturday, June 25, 2011

Cut, Cut, Cut, Ok

A fellow blogger on the conservative size says we just need to cut the spending out.  Ok, and I ask him where to start?  He says we can cut foreign aid out.  I agree.  That is roughly $70 billion and about 2% of the budget and we still have a $1.55 trillion shortfall this year.  Next? 

My friend realizes that cutting the Department of Education, Dept of Energy and even walloping $250 billion off the defense department still leaves him with more than a trillion in shortfalls - this year alone.  Since the Dept of Energy includes nuclear safety programs I guess cutting it all out would be a tad difficult too. 

Finally he advocates a 5 or 10% cut across the board.   This would reduce the annual deficit by $350 billion or maybe $300 billion if the other cuts are already in place.  Now you have laid off 500,000 public employees, cut social security and welfare payments by 10% and made everyone quite angry.   And you are still $700 billion in debt - this year alone.

There just isn't any way to balance the budget without more revenue. 

Saturday, June 18, 2011

Disagreement Good but Discussion is Better

During the last week I got two heated emails or posts to the blog here.  I deleted both because they are over the top full of disdain for the idea.  I like to debate the idea, but not against those who do not want to discuss they want to "tell" how it is and they know better than everyone else.

It is a great thing when someone criticizes the idea and we can use that criticism to make it a better idea.  This is how we can improve upon the idea.  "I hate inflation" wrote one of the posts and who doesn't?  Do you have an alternative to balancing our federal budget?  Is deflating our dollar 10%  a year any worse they paying a 12% value added tax they will try for force upon us soon? 

When everyone pays (inflation) the cost to everyone goes down.  The problem with our society is we expect the other guy to pay.  Corporations avoid taxes like the plague because the rate is the second highest on the planet here.  If we lowered the rate they'd be inclined to pay the taxes and the government would get more money.  There are a lot of people unwilling to believe in that theory.  We could try it for one year and see.  Would that be so crazy?

A so called expert said that electricity produced at night by our energy plants is not built up, and not doomed to be soaked up by the Volt and other electric cars.  This is not consistent with what I read, but I'll give him the "expert" status he so claims.  So what?  Our nuclear power plants account for 19% of our energy (commercial, industrial and residential).  The plants will age out.  Then what?  Don't even add 200,000 electric cars a year to the mix.  Then what?

Tuesday, June 14, 2011

Good for Google

Just read where they are loaning $280 million to solar city so 10,000 homes can get solar power. How cool is that?

Wednesday, June 8, 2011

A Case for Inflation

Inflation, like taxes, has a really bad image.  Its well earned because in good times it just costs people more money.  Like taxes.  I've promoted taxes here, and now I'm promoting inflation.  I hope you won't get stuck on the "tax and inflation" stereotypes and consider the alternative - deflation.

My original proposal of tax and spend for solar as illustrated in my first post would be inflationary.  Gasoline taxes are inflationary and in fact you probably can't get a tax that is more inflationary then a fuel tax.  Since almost every single product (and some services) are brought to you buy fuel driven vehicles (usually trucks) the cost of everything must go up to cover the higher tax.  Why on earth is that a good thing?  Usually it is not a good thing and normally I'd be completely against it.  Not right now.

We need a small dose of inflation.  With this we need higher wages to pay for the added costs.  We need this as a nation to balance our budget and pay off our debt.  But we need it more to fend of "deflation."   Deflation is worse then inflation.  Imagine you have a mortgage with a $1,250 a month payment, and your pay is reduced because of deflation.  That 28% of income they loaned you money against is now 35% of income and the bills are harder to pay.  Some goods will continue to go up even during deflation and they just get harder to pay for.  Deflation can rock our world like nothing this generation has ever seen, and if the only way to avoid it is inflation - then lets make it happen.

The original plan here to increase fuel taxes and pay for solar installations will cause some inflation.  It will also create 250,000 to 300,000 really good and necessary jobs.  It will insure long term low cost energy.  This has too many "wins" for us to ignore.