Senators Hatch and Lee’s Balanced Budget Amendment is nothing but political grandstanding. It’s good politics but it’s not reality.
You could never get federal spending down to 18 percent of GDP without closing down Hill Air Force Base and dozens of other military bases across the country. That is the spending level their Balanced Budget Amendment calls for. Utah’s two Senators should focus on policies that would help the private sector.
First, the country needs to resolve the ongoing mortgage crisis. For mortgage notes worth more than the house is worth, homeowners should be allowed to have the principal written down.
Next, revise the corporate tax codes in a way that would lower taxes but not the amount of revenue collected by the treasury.
Finally, with as much as 1 trillion dollars in profits for American Companies being held overseas, Congress should allow companies to repatriate that money at a tax rate below the 30 percent to 10 or 15 percent. This one-time tax break would bring home money to fund infrastructure grants to the states which would result in local employment.
Senators Hatch and Lee could use the Senate to push such programs to help the economy. The goal of politics is to make a difference not just make a point.