Tax the rich and downsize the military to curb inflation

Some conservatives are calling for a balanced budget amendment, even though they supported massive tax cuts for the wealthy a few years ago. But progressives are ready to balance the budget without changing the constitution.

In 2024, voters will elect candidates who will fight to balance the budget on the backs of those who can afford it the most, for a change. Inflation will return to normal when we pass stiff new taxes on corporations and the wealthy to create a budget surplus, and use those savings to start paying down the $30-trillion national debt.

Of course, it could take decades to pay off the whole amount. But what is 30 trillion anyway, among friends? Just a number, right?

Wrong. Unless the United States gets its fiscal house in order soon there will be a crash, although nobody knows exactly when. To avoid disaster, voters have to demand that their representatives in Congress

pass hefty taxes on the incomes and wealth of rich families and corporations, to force the special interests to pay their fair share. Obviously, they are never going to volunteer to do that.

One big obstacle to accomplishing that simple change of taxing corporations and billionaires fairly is bank secrecy. This is especially true in America, which has been a longstanding holdout against joining international anti-corruption agreements. As a result, several states have banks that are holding hundreds of billions in secret accounts. Those accounts have to be made transparent to the IRS with tough legislation to identify and tax hidden wealth.

The other fundamental change needed is the downsizing of the military budget. Believe it or not, top commanders already see the need to become more cost-conscious and they are ready to regroup and create a leaner, greener and more effective military for a new era. The problem is, a large number of self-serving politicians in Washington continue to pass pumped-up defense appropriations bills that are far above what the military has requested. That is inflationary and unsustainable.

The military-industrial complex is hurting all Americans by sucking the oxygen from the economy and leaving no resources for the human priorities that voters want and need, like housing, education and health care. Still, despite the current levels of spending, the military would respond with grace and professionalism to a new, smaller defense budget that would close some bases, stop some weapons programs and bring some troops home to help with the border crisis and climate emergencies.

Even allowing for the costs of the war in Ukraine, the military will prove they can keep us safe without breaking the bank, if Congress and President Biden give them that challenge. Members of Congress should agree to put a lid on the pork barrel and work toward $700 billion in military spending instead of the $858 billion defense budget they recently passed. Keep in mind, that was $80 billion more than last year — not counting over $100 billion for Ukraine.

In short, there are two bold steps that a majority of voters want Congress to take right now, regardless of political party. The first step is eradicating tax loopholes and slapping much higher taxes on the wealthy and giant corporations. The second step is reining in weapons production and military spending to a less frenzied level.

With those two crucial improvements to the bottom line, taxpayers will finally be able to afford a national budget that is humane, as well as balanced. And a balanced budget that includes a national debt reduction plan is the only way to curb inflation permanently.

Let’s face it: The Federal Reserve cannot tame inflation using interest rates alone, without causing a recession or worse. It is like the tail trying to wag a $30-trillion-dollar dog. Fed Chairman Jerome Powell is too reserved to mention the real cause of inflation but ... it’s the national debt, stupid.