Mr. Portman’s new proposition (2/15/2010) suggests a continuation of the Republican mantra of spend and charge – the result of which is a debt left behind for our children and the generations to follow.  I cannot imagine an American alive today who would not love to support Mr. Portman’s “innovative solution” to the Nation’s economic woe of a “a one-year payroll tax holiday that will immediately help working families keep more of what they earn and give small business owners an incentive to hire more workers.”  But most thinking Americans understand the proposition to be unworkable, unreasonable, and unaffordable.

In Fiscal Year 2009, the Federal Government collected $918 billion dollars in individual income tax, $849 billion in employment tax, $138 billion in corporate tax, and $202 billion in “other” taxes.  If FY 2010 is similar to FY 2009, Mr. Portman’s proposition is for the government to forego the collection of more than 62% of its FY 09 revenue which had created a deficit of $1.3 trillion without the proposed reduction in revenue.  The new FY 2010 deficit would be in the range of $3 trillion dollars.

A quick snapshot of the FY 2009 Budget shows that 61% was allocated to non-discretionary spending such as Social Security, Medicare, Medicaid, Unemployment, and interest on the National debt.  The remaining 49% covered the discretionary spending for Departments of Defense, Health & Human Services, Transportation, Homeland Security, Justice, and others.  It is simply not an option to de-fund them to the tune of $1.7 trillion.

Borrowing the funds to give a “one-year payroll tax holiday” requires the increase in the national debt limit.  Furthermore, we will have to witness once again our Secretary of State and Secretary of the Treasury traveling to China with hat in stretch out hand asking for more borrowing.  On one hand the Chinese may refuse and the funds to pay for more than half of our ongoing expenses will not exist OR they may provide the necessary funds which in turn weakens the dollar abroad, increases the costs of imported goods, and increases interest rates and inflation on the home front.

Mr. Portman, you suggested on your website that “[w]e need innovative solutions, not more of the same that has sent Ohio’s [and the Nation’s] economy into a downward spiral under the failed leadership ….”  I could not agree with you more, so please lets simply stop the typical Republican answer to all economic issues of spend and charge, and develop some real innovative solutions.

William G. Pierce, P.E.