Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, February 2, 1992 TAG: 9202030171
SECTION: EDITORIAL PAGE: A-11 EDITION: METRO
SOURCE: By JOHN RUBINO
DATELINE: LENGTH: Medium
TIME FOR AMERICA TO RETRENCH
LADIES AND GENTLEMEN, our nation finds itself at a crossroads. For the past 50 years American military might and the resolve of its people have been all that stood between the world's free nations and the forces of insanity and evil. Future generations will view our success as one of the truly extraordinary accomplishments of human history.But with the collapse of the Soviet Union, the last major threat to world peace has been removed, and in its wake has emerged a global trading system of unprecedented competitiveness.
Economic strength is now the key to national security, and we find ourselves weakened by the long years and trillions of dollars spent defending the world from communism. We have neglected our domestic needs, from the education of our children, to the maintenance of our roads and bridges, to the basic scientific research crucial to keeping us at the forefront of technological progress.
So, I come before you today to map out a plan for a radical change in the way your government operates. I propose to reduce the size of the federal budget by more than $200 billion per year, and return that money to its rightful owners: you, the working people of this country.
My plan is as follows: First, we will cut defense spending in half by 1995, mostly by bringing our soldiers home from Europe and Asia and closing military bases that are no longer necessary. This will free up about $140 billion per year.
In addition, foreign aid will be halved across the board; the welfare of our children must now take precedence over that of our overseas allies, deserving as some of them may be. Third, all cost-of-living increases on federal programs - from Social Security, to government pensions, to Medicare reimbursement schedules - will be suspended until such time as the country can afford to resume them. American workers have seen their real incomes fall for the past two decades, and it is unsustainable for recipients of transfer payments to keep up with inflation when the taxpayers funding the programs do not.
Finally, and this is the part that I'll enjoy the most, I intend to ask federal government employees to share the pain that this recession has visited upon the private sector, by accepting pay cuts of 10 percent for all those below the rank of congressmen, 20 percent for congressmen and higher, and 25 percent for me, the president. Congress and the public-employee unions will howl when they hear this, but what right have they to complain, after what the people paying their salaries have gone through during the past 20 years?
The total savings from all of the above will exceed $200 billion per year, or about $3,500 for each family of four.
American taxpayers, this is your money. So I propose to return it to you, in the following ways: First, investment income - interest, dividends and capital gains - up to $10,000 in any given year will be exempted from taxation. This will make it easier to save for your children's education and your own retirement. Second, I will direct the Secretary of Health and Human Services to sit down with Congress and devise a national health-insurance plan that will provide decent medical care for all those who need it, while at the same time controlling the system's cost to taxpayers. Whatever funds remain will go toward raising the standard deduction on your tax forms, to let you keep more of your hard-earned wages.
The American people have been very patient. We have sacrificed for such a long time in so many ways to play a role in the world, a role that has proved decisive to the preservation of freedom. Our allies, the Japanese and Europeans, will understand, if, after 50 years of safeguarding their freedom and prosperity, we decide to withdraw from the international scene for a while and rebuild our own foundation, that we may emerge even stronger, ready to meet the challenges of the new century.
John Rubino, a Roanoke writer, is a former Wall Street financial analyst and bond analyst.