Last week a poll revealed that 75% of the American people are dissatisfied with the U.S. Congress, and that’s one of the lowest figures for Congressional popularity in some time, if ever. On the surface, one might conclude that, to improve its standing, all Congress has to do is to reverse course. Alas, that would result in close to the same figures, I suspect.
Why? Because, if you’ve been reading about all the Congressional shenanigans, you know that the Republican-controlled House of Representatives and Republican senators aren’t happy with the Democrat-controlled Senate or the President, and the Democrat-controlled Senate and Democratic representatives are close to furious with the Republican-controlled House.
For all these ideological differences, there’s one absolute similarity between both sides in Congress. Neither they, nor their supporters, really want to deal with the facts of the situation they face. In reality, if they did, most of them feel they’d soon be voted out of office. Both sides are wrong, and neither side can afford to admit it… or to compromise.
Everyone agrees in principle that the U.S. government can’t keep spending more than we collect in various tax revenues. What they’re vigorously opposed on is where to make up the difference, either through spending cuts or increasing revenues.
We can’t keep increasing the amount the federal government spends on health care unless we increase taxes, and if we cut federal health care expenditures to avoid raising taxes, the cuts will be so deep that the poor, the lower middle class and working classes will suffer when they reach retirement age, if not before. The same problem exists in dealing with Social Security – unless future retirement ages are increased, but that will likely result in effective benefit cuts because, for a variety of reasons, many older workers retire before they’re eligible for full benefits.
There are other funding sources, of course, but one or another entrenched interest opposes them, and thus, so do the legislators beholden to those interests. We’ve all seen the disasters, for example, created by the speculation in all sorts of financial transactions. So what about a federal tax on securities and stock market transactions? Not just on capital gains, but on the transaction itself, paid not by the investor but by the entity handling the trade. Do you really think Goldman-Sachs would let Congress anywhere near that? Most agriculture subsidies go to corporate farmers? Do we really need them? Especially when the ethanol tax credit raises food prices? Just try to cut those subsidies and revenue losses.
Over forty percent of all Americans pay no federal income taxes. Just see what happens if any legislator suggests that they should. What about getting rid of mortgage interest payment deductions for second homes? Not first homes, but second homes, vacation homes, etc.? Why should taxpayers get a tax deduction for a vacation home? Suggest this, and the realtors and the bankers will be after any Congressman who does.
The list of possible fixes is long, and many of them would indeed work, but one thing is clear. Everyone knows the system needs fixing, and no one wants to pay for it. Each interest wants someone else to pay for it, and because that’s so, Congress can’t come up with a solution… and everyone’s mad at Congress, because each representative and Senator is indeed representing the interests of those who either elected them or contributed the funds that elected them. But, for all the talk about reaching a solution, woe betide any representative who thinks about compromising with the other side.
Just ask former Senator Bob Bennett what a single vote toward a compromise does to a senator’s career.