Why can't this same principle be the basis of a Balanced Budget Amendment?
Politicians are forever using the excuse that they can't set the budget for a given year, because they don't know ahead of time how much they will receive that year in tax receipts.
But politicians should have a pretty good idea what we collected last year. Why not set the budget for the next year at what we collected last year? If we are always setting budgets based on two-year old tax receipts then that will be something of a discouragement to inflation.
Every once in a while we might actually spend less than we receive in a particular year and get to eliminate some of the debt.
Does this idea make too much sense to implement?
Well, not really. And coupled with "Zero based budgeting" each year, it would be a godsend!!!
I hope everybody BOOKMARKS this thread for reference. I know I certainly have... great comments, except one!!!