This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Independent Fiscal Authority Board Can Solve Debt Crisis

NEW YORK (TheStreet Ratings) - America's debt crisis does not have to turn into a Shakespearean tragedy. The full faith and credit of the United States can be preserved by removing the politics from the decision to raise taxes.

Just as the Federal Reserve Board remains independent and sheltered from the harsh political winds by not needing Congressional or Presidential ratification of their monetary policy adjustments to money supply and interest rates, American would be well served by having an independent body setting fiscal policy on tax revenue collections.

One hundred years ago, the United States Congress, after seeing the damage caused to businesses by the panic of 1907, as well as the many other panics and crashes experienced in the 1800's, passed the Federal Reserve Act of 1913. They believed that an independent board authorized to set interest rates and control the supply of money would aid in business growth.

We need another independent body of government to set fiscal policy consistent with the U.S. Constitutional goal of preserving our union and supporting the general welfare by paying down and eventually eliminating our national debt. I, hereby name this body the Fiscal Authority Board, or FAB, because it is such a fabulous idea.

Why is FAB needed? There is little hope that the current structure of our federal government can balance a budget let alone pay off the U.S debt. An independent body with no social agenda setting fiscal policy may be required to balance our books.

Politicians, cowered by the thought of voter backlash, never want to raise taxes. They rationally fear that fulfilling their required duty to do what is in the best interest of the continued prosperity of our country will cost them their job in the next election.

President Obama made a campaign promise to cut the deficit. He would like both spending cuts and increases in tax revenue consistent with his other promises to protect Americans making less than $250 thousand a year and to collect more from tax sheltered, affluent Americans and corporations not paying their fair share. The President's grand compromise to raise the debt ceiling is reviled by both ends of the political spectrum. Plus, Mr. Obama had an opportunity to let the Bush tax cuts expire but made the political decision to continue the tax breaks.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs