State, federal leaders must address deficits

Published 9:43 am Tuesday, January 11, 2011

Column: Robin Brown, My Point of View

Editor’s note: “My Point of View” is a column that local Democrats and Republicans alternate writing weekly (not during the campaign seasons), though one party or the other might skip its turn from time to time. Look for “My Point of View” on Tuesdays.

Robin Brown

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Minnesotan’s hopes and expectations are high for our newly sworn leaders in federal Congress, state Legislature and governor. With a federal deficit exceeding $14 trillion dollars and the state projected deficit over $6 billion, our elected officials certainly have their work cut out for them.

In December 2010, multiple commissions made their suggestions for reform that would reduce the federal deficit. The National Commission of Fiscal Responsibility and Reform, a bipartisan committee that researched the topic over an eight-month period, may be the most well-known group, but others have studied the federal budget and reported on the topic as well.

The reports have striking, but not surprising, similarities. Themes that run through many of the reports and are stated in the National Commission of Fiscal Responsibility and Reform report include:

• Protect the truly disadvantaged.

• Cut red tape and unproductive government spending.

• Invest in education, infrastructure, and high-value research.

• End redundant, wasteful and ineffective spending.

• Promote reforms and efficiencies.

• Reform and simplify the tax code.

• The solution will be painful.

My guess is that none of the principles stated in the report come as a surprise to readers. They may even be words you have spoken yourself — maybe values you believe in.

I look forward to a civil public debate as our elected officials do the work it will take to reign in our deficit. In the simplest of terms, every comprehensive bipartisan report clearly states that balancing the budget will require a combination of cutting expenditures and increasing tax revenue.

But the fact is, few people want their program cut or tax credit removed and most do not want their taxes raised, so the question is, “What am I (what are each of us) willing to give up to help balance the budget?” After all, we each benefit from safe roads and bridges, a strong military, police and fire protection, public schools and universities, local hospitals and nursing homes, safe drinking water and food, and access to lakes and parks — all paid for with tax dollars.

As mentioned earlier, the report speaks to cuts and efficiencies, but it also addresses tax reform as a method to balance the budget. The report states and I have personally heard Minnesotan’s say, “… the current income tax is fundamentally unfair, far too complex, and long overdue for sweeping reform.” The report further states, “The current tax code is riddled with $1.1 trillion of tax expenditures: backdoor spending hidden in the tax code.”

To be very clear, tax credits and tax deductions are exactly the same as tax expenditures. The report suggests all tax rates could be lowered with the elimination of tax expenditures. But are we willing to trade our tax credits and deductions for lower tax rates and a more simplified tax code that will also lower our national deficit?

Political leaders at all levels of government will be making big decisions over the next few months that will have a significant impact on our future quality of life. As citizens, we need to be engaged with our elected officials by providing them reasonable and well thought out suggestions for the work that needs to be done with the common goal of balancing the state and federal budgets.

Now more than ever before we need to join together to work toward the common cause of fair taxation as we all benefit from a high quality of life. Over the past 10 years, we have had a borrow-and-spend policy at the state and federal level that has significantly increased the state and federal deficits. The question is, should we pay for current programs with current tax dollars or should we pay for current programs with borrowed tax dollars that need to be paid back in the future with interest?

These are emotional issues that impact peoples’ lives. As I was writing this column I viewed the national news coverage of the assassination attempt of Arizona Congresswoman Gabrielle Giffords and the shooting of 20 others. Violence has no place in American politics. It is appropriate to be passionate about our views, but we must act as good citizens as we participate in the important public discussions and debate on current issues.

Partisan rhetoric would suggest that there are only two ways to balance a budget — cut programs or raise taxes. This report suggests that there is a third choice — a balanced combination of the two.

You can find more information about the National Commission on Fiscal Responsibility and Reform at http://www.fiscalcommission.gov. Their final report, “The Moment of Truth,” can be found at http://www.fiscalcommission.gov/meetings.

Robin Brown is a former District 27A representative, a member of the Freeborn County DFL Party and a teacher at Albert Lea High School.