The Federal Government is currently printing $1 Trillion every 100 days.  This is unsustainable.  

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Federal debt sounds like a federal issue, but it is actually a state issue.  

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In 1789 the founders approved the Bill of Rights.  In December of 1791 the States ratified those changes and the first ten amendments were added to the Constitution.  The tenth amendment reads: 

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The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

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Over the past 238 years the states have erred in failing to defend their rights to keep government policy and programs at the state level.  Too often, the federal programs are created by the federal government and administered by the states.  There is, of course, a transfer of money from the federal government to the states with each of these programs.  If the federal government had money in their checkbook - this would still be wrong.  But the federal government doesn't have any money in its checkbook, making it immoral and unsustainable.  

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I propose a return to the government that the founders envisioned.  I have ZERO FAITH in the ability of a majority of Senators and Representatives to vote for a transfer of these programs to the states and for the remaining "Constitutional" activities of the federal government to be fully funded with a balanced budget.  Because the politicians in Washington are fully incapable of making this change, it must come through a Constitutional Convention.

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It is clear to me that the Constitutional Convention must require the following changes:

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Limiting the federal government to the functions outlined in the Constitution.  Those functions would be determined and outlined by the Convention.  The size of the budget necessary to accomplish those functions would be determined and the corresponding percentage of National Gross Domestic Product (GDP) (or some similar measurement would be established), and the budget would be limited by that percentage in future years.  Such a budget could likely be funded through fees and tariffs and would not require an income tax.

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The existing national debt - $34.67 Trillion - is way too high, but it is just a fraction of what is owed.  Social Security, Medicare and other programs add up to the unfunded liability.  According to the National Debt Clock the current unfunded liability is $214.8 Trillion.  What are we to do?  Does no one serving in Congress have children or grandchildren?  It is not ok to saddle our children and grandchildren with over $638,000 in debt for every citizen of the United States.

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In addition to the "Constitutional Budget" I proposed above, I propose the following changes:

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Social Security currently has $26.7 Trillion in unfunded liability.  I would divide current participants and workers who have contributed a minimum amount of money or paid in for a certain number of years.  For existing participants, we would honor the promise we have made to these citizens.  In short, those headed to retirement would continue to pay into the "old" system and they would be paid through their death under the current rules.  This would lead to a massive debt.  Every resident of the United States would be responsible to pay a small tax or fee to pay for the promises of Social Security.  Eventually the last participant would die, and the tax would remain in place until the debt was retired.  Once retired, the tax would be eliminated and could not be redirected to any other purpose.

 

"New" workers and those who have paid only a minimal amount into Social Security will have a choice.  They will either elect to participate in New Social Security (NSS) or a private savings program.  I would require every individual to participate in one or the other.  Not saving for retirement would not be an option.  The NSS program could not be subsidized by any tax or transfer.  It must be fully funded by the participants in the program.  If the projections of the actuary are incorrect, the participants must accept lower payouts or pay higher premiums.  We have known that Social Security was built on a "sand foundation" since I was a junior in high school in 1980.  We cannot create a NSS that establishes a pattern of unpayable debt.

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Individuals that select a private savings plan must also participate in a disability insurance program providing similar benefits to those offered by the Social Security program.

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Medicare has unfunded liabilities of $41 Trillion.  My proposal above for Social Security would be replicated for Medicare.  Current participants and those that have met a threshold of payments into the system will participate in the current rules.  Everyone would pay a tax that would cover existing participants unfunded liabilities.  New workers would participate in "New" Medicare or elect to participate in a private insurance program.   

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Federal debt would be separate from the annual budget of the Federal Government.  Bonds would be sold for that debt, and everyone would pay a tax to fund the payment of that debt.  Once the debt was retired, the tax must be retired, and no federal debt would be permitted.  Debt would likely be needed in the case of war, but that could have a limited term under which it must be retired.  

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I don't have a staff of lawyers, policy professionals or accountants.  My guess is that the U.S. debt could be retired within 50 or so years.  The Social Security and Medicare debt would balloon over the next forty or so years, but then it would begin to decline and eventually be retired after 80 or so years.  The same pattern would exist for Medicare.

 

What about all of those other essential federal programs? 

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Everything not outlined in the U.S. Constitution would be transferred to the states.  Each state would then determine which programs must be maintained by the state, which should be transferred to the counties or cities.  Some programs would likely be eliminated.  Others would be created or enhanced to serve the unique needs of Kansans.  Not only should these programs be transferred from Washington DC to Topeka, but they should also be transferred from Topeka to counties, cities and your homes.  

 

I would also propose an amendment to the Kansas Constitution that would limit the "net taxes" paid by any individual or business to not exceed their 2024 tax liability percentage.  For example, if 35% of my total income went to Federal, State, Local and Sales taxes; then the maximum percentage I would be required to pay in the future could not exceed that rate.  The National Debt Clock shows that as a national average, the total of all taxes paid to the federal, state and local governments is 29.58% of the GDP.  The problem, of course, is that all levels of government are spending at a rate of 37.17% of GDP.

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I'm certain the State of Kansas can find more creative ways to fund and direct the necessary functions.  I am even more certain that our federal representatives are completely incapable of living within their means and eliminating the debt.  We must establish a Constitutional Convention that would address these issues.

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