What is the debt solution when it comes to America’s national debt? We hear our politicians talk about the “need” to reduce our national debt, but month after month the federal government debt keeps rising. The counter below gives an approximation of the national debt at this very moment. I think you’ll notice it’s going UP, not down!
|The National Debt Clock|
While there is near unanimous agreement that we need to reduce our national debt, no one seems to be putting forward concrete ideas for the debt solution. I have an idea for the debt solution that I think would work. The concept is extremely simple, but the practical implementation would be difficult because of the way Washington works. But if the American people put enough pressure on the White House and Congress to find a solution to our national debt crisis, then maybe at some point they will be willing to consider possible this and other debt solutions.
Here’s my idea. Each year, federal expenditures should be limited to the PREVIOUS year’s ACTUAL tax revenue. In other words, in any given year, the federal government is never spending more than it brought in the previous year. Any excess revenue each year would then be allocated to reduce the national debt, thereby implementing the debt solution.
In most years, this would result in an overall reduction of federal government debt. That’s because in most years our economy grows, resulting in increased tax revenues from one year to the next. So if we limit our expenditures to “last year’s” tax revenue, that should leave excess funds to apply toward national debt reduction.
This would require a change in the federal budget process, but most people agree a change is needed. Regardless of whether or not you agree with this idea for the debt solution, if you’re tired of the uncontrolled growth in our national debt, I encourage you to contact your Congressman and Senators and let them know how you feel.
Thank you for visiting this site and reading this article on a proposal for the debt solution. Your interest in the national debt and related topics is very much appreciated, and you are invited to read additional articles on this site.