Morning Glory: Congressional GOP needs to find new sources of revenue
2025-01-30
Category: political

The Congress needs new revenue in order to pass a budget and unlock the reconciliation process—whether in "one big beautiful bill" or two—if it is going to accomplish President Trump’s agenda without bleeding massive and ongoing amounts of deficit spending. The national debt is currently more than $36 trillion. We pay interest on that debt, an expenditure which is growing rapidly. And we need to pay that debt down not raise it with higher debt service. We also need new expenditures—a massive increase in procurement in the Department of Defense for example—expenditures that, if not at least partially offset by cuts to ongoing spending or new revenue, will see the debt cross $40 trillion in the president’s second term. Here are four suggestions for the GOP budgeteers: 1. Americans are thrifty. They have socked away more than $37 trillion in retirement savings in 401(k) plans and traditional IRAs. Those savings have never been taxed. They will be taxed upon withdrawal. Most savers don’t want to withdraw that money until they retire and their tax bracket drops. In fact, a lot of that will be never be withdrawn by the folks who saved it but will be passed on to heirs. So, Congress, open a one time window that allows those savers to convert those funds to Roth IRAs for a one-time flat tax of say 10% or 15% or whatever yields the present value of the deferred taxation. Get the money now for use in the budget/reconciliation process. CLICK HERE FOR MORE FOX NEWS OPINION  2. Sell federal land and federal spectrum rights. Credit to AEI’s Matt Continetti for this suggestion. The U.S. has a lot of land and a lot of spectrum. Auction some of it. Maybe a lot of it. That will increase productivity in the country and bring in revenue. TRUMP ADMIN TO PAUSE GRANTS, FEDERAL ASSISTANCE PROGRAMS FOLLOWING EXECUTIVE ORDERS 3. Make so-called "sin taxes" great again. In recent years, many states have legalized both marijuana and online gambling. Those are facts. They are stubborn. They were both bad policy choices, but states have the police power unless preempted by federal legislation. The Congress has no stomach for outlawing either industry, so impose a federal tax on every sale of a marijuana-related product and on every single gambling transaction over the internet. Preempt the states’ revenue streams and put the first dollars of the taxes on those activities into the federal treasury and perhaps the states will rethink these bad ideas. If not, at least the malign developments of dope and betting will help the country as a whole pay for the negative externalities of both and with the debt and deficit.  4. Enact in the new budget a 10 percent "reduction-in-force" of the federal civilian workforce and make that authorization "notwithstanding any other law or regulation." Congress built the beast of the federal administrative state. It can authorize the president to take an ax to it—no questions asked. Every business in America knows that when the books don’t balance, the workforce gets trimmed. Time for the federal government to do the same thing, difficult as it is for the employees affected. CLICK HERE TO GET THE FOX NEWS APP There are four sources of new revenue to use in the first new budget. They alone will yield trillions in one-time revenue and billions in ongoing revenue without raising income taxes. C’mon Congress. Get creative.  Hugh Hewitt is host of "The Hugh Hewitt Show," heard weekday mornings 6am to 9am ET on the Salem Radio Network, and simulcast on Salem News Channel. Hugh wakes up America on over 400 affiliates nationwide, and on all the streaming platforms where SNC can be seen. He is a frequent guest on the Fox News Channel’s news roundtable hosted by Bret Baier weekdays at 6pm ET. A son of Ohio and a graduate of Harvard College and the University of Michigan Law School, Hewitt has been a Professor of Law at Chapman University’s Fowler School of Law since 1996 where he teaches Constitutional Law. Hewitt launched his eponymous radio show from Los Angeles in 1990. &nbsp;Hewitt has frequently appeared on every major national news television network, hosted television shows for PBS and MSNBC, written for every major American paper, has authored a dozen books and moderated a score of Republican candidate debates, most recently the November 2023 Republican presidential debate in Miami and four Republican presidential debates in the 2015-16 cycle. Hewitt focuses his radio show and his column on the Constitution, national security, American politics and the Cleveland Browns and Guardians. Hewitt has interviewed tens of thousands of guests from Democrats Hillary Clinton and John Kerry to Republican Presidents George W. Bush and Donald Trump over his 40 years in broadcast, and this column previews the lead story that will drive his radio/ TV show today. CLICK HERE TO READ MORE FROM HUGH HEWITT