OPINION:
President Obama is absolutely right: Now is the time for all Americans to share the sacrifice. We can start by sacrificing parts of the federal government.
Data compiled by the Commerce Department’s Bureau of Economic Analysis for 2008 shows the average government salary is nearly double the average private-sector job. There’s an opportunity for a permanent cut of all government salaries by 25 percent without any hidden deals for future increases. Establish a path to parity between private-sector and government salaries within five years and a process to maintain this parity.
Government employee benefits are also substantially higher than those in the private sector. Establish parity between all private-sector and government benefit programs such as retirement and health care by reductions to extravagant government programs. End practices such as the unlimited accumulation of paid time-off such as vacation and unused sick time and implement an annual use-it-or-lose-it policy.
Government has grown too big. Congress must act on reports that have identified duplicate government programs to consolidate or eliminate duplicate programs. Require by legislation that no new program can be established without verification that no such program already exists.
We should also see that all “czars” and their staffs are eliminated and that government employees are actually working. In addition, we must reduce government staff, including appointees, consultants and contractors to 1998 levels.
Also, the tax system is out of control. Here’s an opportunity for a fair tax or graduated flat tax with deductions limited by gross income for home mortgage interest and high medical expenses due to catastrophic events or severe illness. We can drop corporate tax rates, too, while eliminating the loopholes.
As for Social Security, it’s a Ponzi scheme. Congress ought to remove the federal, state and local governments from all pension system roles and consolidate all retirement plans into individual 401(k)-style, self-directed retirement plans held by a third-party retirement funds trustee. It could then provide protection for those nearing retirement while relieving younger workers from corrupt government and union officials that use retirement funds for other purposes.
Medicare and Medicaid are on a path to insolvency. Our government has no incentive to control costs, whereas private firms must do this in order to turn a profit. Privatize these efforts and watch the fraud disappear.
MICK SIMPSON
Freehold, N.J.
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