THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, August 21, 1996 TAG: 9608210010
SECTION: FRONT PAGE: A16 EDITION: FINAL
TYPE: Letter
LENGTH: 49 lines
Recently I listened to the two most optimistic men in the United States, or maybe the world. Not a word about the deficit or the national debt of approximately $5 trillion.
My first observation was of Jack Kemp. At 61, he is about 10 years too old for the job of president and 20 years too old for the job of vice president.
My second observation was of Bob Dole, which reminded me of the Bud Light advertisement: ``I love you Dad,'' and the dad says, ``I'm not going to make you president or give you my Bud Light.''
The budget deficit and the national debt were caused by Ronald Reagan, Bob Dole as Senate majority leader and Jack Kemp. George Bush called it at the time - voodoo economics.
If the national debt were erased, we would then have a surplus of perhaps $168 billion a year. A tax cut would be one of the options to consider at that time.
This is my plan to eradicate the national debt: For every tax-free contribution made to any charity, church, hospital, politician, foundation, museum, college, etc., the recipient send the top 20 percent to the federal government to retire the national debt. No new taxes to pay off the national debt.
The next step, if the first one would not raise enough money, would add to the same plan the top 3 percent of income raised by taxes of state and municipal governments. No new taxes.
The next best way is for the U.S. government to offer enough 3 percent, 20-year bonds to pay off the existing debt. That would cut the deficit down to a manageable budget. The bonds would be bought by patriotic citizens and corporations, and by countries that have a trade surplus with us. Perhaps it would take a little arm twisting to convince all of the above. A 3 percent bond that is free of federal and state income taxes is the same as the 5 percent CD rate.
Congress could close down the NYSE, AMEX, NASDAQ and all trading in stocks and bonds commodity markets until the $5 trillion reissue is realized. Newt Gingrich and Bob Dole did not have the slightest trouble in closing down the U.S. government. This is a rather simple refinancing opportunity that states and cities do at every opportunity.
I would expect to be paid 0.75 percent of the entire issue, tax-free of course.
I think these plans are entirely reasonable and workable and carry no risk whatsoever to the American economy or the U.S. government.
IRVIN H. COHEN
Virginia Beach, Aug. 16, 1996 by CNB