Professor Elam

The Most Ethical Congress in History

 

 Charles Rangel has his swagger back, but not his power.

The 40-year congressional veteran on Thursday became the 23rd House member in the nation's history to be censured for misconduct. Beyond the stain on his career, the censure will have little, practical effect. Rangel's seat appears safe as long as he wants it.

Washington DC December 2, 2010

 

Rangel was censured on a  333-79 vote for failing to pay taxes, not reporting assets, and various other misdeeds. One wonder what the 79 would consider conduct not becoming. A Censure is just that. Charlie stood in front of Congress and Nancy Pelosi said, you are censured. The result however…He remains extremely popular with his House colleagues, greeting them by the dozens as he moves through the Capitol.

 

There are four levels of disapproval for a Congressman’s actions. From bottom to top they are Fine, Reprimand, Censure, And Expulsion.  It occurred to me that the rest of us operate at Level One every April 15. We are annually fined for making money. Indeed the arrogance of the government is now expressed in terms like, if taxes are not raised the government will be shorted x billions.

 

Well we can only hope. The ruse that Federal Employees will have their pay cut is just that, the only hold is on inflation adjusted increases, and of course there is no official inflation. The rich endow us with   museums, libraries, symphonies, and all manner of public conveniences. When the Federal Government builds something it is usually in Washington DC.  That is not particularly handy for a weekend stroll in Andrews, TX.

 

Corporations in the United States now pay the highest corporate taxes in the world. It is no wonder they are exporting jobs overseas. And questions about the new health care liability have other potential hires on hold. The big question should not be whether the Bush tax cuts (read the Obama tax increases) should be extended but how the entire tax structure should be overhauled. East European nations that have cut taxes have seen business move to their country. Georgia, the country not the state, is advertising that fact as I write. My ideal would be a Federal Government so unobtrusive it could get by on excise taxes, which it did until 1913. But realistically, how about these ideas for a start?

 

The amount Congress can spend is limited to say 10% of the Gross Domestic Product, period. They would be capped just like states and cities.

 

We would all pay a flat tax on ordinary income of ten percent. No deductions for kids, if you want more of them, you can pay for them.  Please note this is the program suggested in the Bible thousands of years ago, if it works for the Baptists it ought to work for the Feds.

 

Everyone pays, and in that way we all stay interested in how our money is spent.

 

It would be too much to hope for eliminating withholding, as that would collapse the entire Federal Government the first time all had to write a check for this nonsense.

 

Corporations would pay no tax as that is just passed on to consumers.

 

There would be no estate or alternative minimum tax or capital gains tax.

 

Best of all this would prevent Congress from dolling out fax favors which bloat the tax code with unreadable prose. The tens of thousands of hours spent by you and I and accountants all wasting time preparing tax returns would be eliminated. CPAs could help clients improves their business, make more money, and, pay more taxes on the improved income, what a concept.

If one party wanted to stand out, it would introduce a proposal like this a force a vote, and then run on the result. That is probably wishful thinking, after all authors of the tax code are still extremely popular with their colleagues.