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Policy Memo. To: Henry M. Paulson, Jr., Secretary of the Treasury From: Mr.
Ben Bodi, Business Interest Lobbyist Date: April 5, 2007 ...
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Director Date: May 7, 2007 Subject: External Company Email Policy During a ...
Submitted by benbodi on April 16, 2007
Category: Business
Words: 849 | Pages: 4
Views: 155
Popularity Rank: 73,595
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To: Henry M. Paulson, Jr., Secretary of the Treasury
From: Mr. Ben Bodi, Business Interest Lobbyist
Date: April 5, 2007
Subject: A business interest lobbyist's recommendation for reducing the U.S. budget deficit
With a current budget deficit of $246 billion dollars, the U.S. government should adopt extensive fiscal measures that will reduce this deficit and simultaneously promote long-run economic growth. To ensure long-run real GDP growth and a reduction in the budget deficit, the United States Congress and Senate should make permanent President Bush's tax cuts, promote reform of entitlement programs, and foster favorable business policies.
Reforming Social Security. The U.S. can reduce government spending by reforming Social Security by taking steps towards its privatization, raising the age at which people become eligible for government-financed retirement benefits, and improving the way Social Security benefits are indexed for inflation. Such measures, including the use of individual, private market investments would help guarantee the program's long-term viability with as little impact on taxes and benefits as possible. These individually managed accounts would allow individuals to invest at their own discretion and earn much higher returns. Unless reform is implemented now, by 2018 Social Security will begin paying out more in benefits than it collects in taxes, putting the program in jeopardy for future generations.
Changes in government revenue. When taxes are raised on all income groups, many people find ways to evade these tax hikes. Hence, tax increases only lead to marginal changes in government revenues. Tax increases are also deleterious to many businesses for they hinder company expansion and growth. This results in large projected tax revenues from businesses not being realized. Tax cuts on the other hand, specifically President Bush's, led to the...
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