The Sequester Cometh | National Catholic Reporter

The Sequester Cometh | National Catholic Reporter by MSW.  MGB: When real interest rates are negative, meaning that inflation is higher than the interest on federal debt, people are actually paying the United States to keep their money. It makes no sense not to borrow as much as possible. Defense should be cut, but the funds should be directed to space exploration - especially for artificial closed system environments that can be used in both space and on earth - just in case we continue to rape the environment.

Tax reform should come and its key feature should not be loophole elimination so much as a change from individual reporting to reporting by employers through some form of consumption tax - a Value Added Tax that shows up on the receipt and has no offsets and a VAT-like Net Business Receipts Tax which provides the vehicle for a simplified system of offsets for health, an expanded refundable child tax credit and a direct program for adult education for the third of adults who are below the literacy we need them to have.

The reason America is not as healthy as other nations is that we are not as well educated, despite the education of our elites. Sadly, while small projects have been taken on by Catholic Charities agencies - the Catholic Educational System has ill-served those whom the public system as missed. Indeed, we should be the largest provider of such training, which could be provided by an employer off-set to their consumption taxes or as a direct service. Employees and Participants of this training should have the same family tax credits and health plans, by the way - avoiding the abortion question.

The whole question of long term deficits has to do with health care - however until we know whether Obamacare will survive low subsidies and risk averse health insurance shareholders and doctors who may quit if not paid, it is too early to make decisions on long term health reform. If it works as promised, we can deal with more changes. I don't think it will. We will either need single payer or a subsidized public option - either which will require some kind of VAT or net business receipts tax to fund (as mentioned above).