Hit Them Where it Hurts

[quote]As Congress finds new and ever more inventive ways to spend money (both real money and imaginary money) more and more voters are waking up to find themselves becoming fiscal conservatives. First off, I must say that there are not nearly enough of us among the voters and secondly I feel compelled to add that we would be in a much better position to be taken seriously if there had been many more converts to the cause while Bush was still in office.

Earlier this week a friend of mine asked for my thoughts on an idea he had to slow and/or reverse the growth in government spending. (I feel compelled to state that said friend was awake to this issue well before Obama was elected – lest anyone mistakenly think that he just woke up to this in the last week.) His idea consists of two parts and boils down to this:

1. Have states set the wages for their Congressional delegation.
2. Have each member of Congress pay for 0.00001% of the federal budget out of their own paychecks. (That’s one out of 10 Million dollars for each member of Congress.)

My initial response was to point out the fact that it would take a Constitutional amendment to make the first part legal due to the provisions of Article I Section 6 that their salaries be paid out of the U.S. treasury (not that state money is not already mostly from the U.S. Treasury).

After thinking about the proposal more I recognize that it only works if both parts are enacted because if only the second portion is enacted it would only take about 30 minutes for the House to pass emergency legislation (or simply attach it to that proposal if they want to be efficient) in which the calculation for Congressional salaries is changed from it’s current “$170,000 plus an automatic annual cost of living increase” to “0.000012% of that year’s annual budget plus $169,999.99 plus an automatic annual cost of living increase.”

The real kernel of the idea was to hit Congress in the wallet – where it hurts – for the egregious budgets they pass from year to year like kidney stones in the national economy. For myself I have long believed that we should make congress feel the pain of their overspending by having them be responsible for a portion of their deficit spending – say 3 times whatever portion of their budget is financed by deficits. (In other words,  if 15% of the budget is deficit spending then members of Congress lose 45% of their salaries – and probably the same portion of their budget for staffers etc. for the year – to help offset their budget.) This only works if there are no exceptions (“oops, we had an emergency and had to overspend – but our regular spending didn’t include a deficit so we should not pay a penalty.”) On the other hand they should also receive some incentive for wise management by offering a bonus of one tenth of any percentage surplus they run for their personal salaries. (That would be, if 10% of revenues were in excess of the annual budget they would get a 1% bonus on their salary for the year.)

Theoretically this would have the downside of encouraging them to raise taxes to cover their spending priorities thus causing citizens to bear a greater cost for their government. Personally I think that would be beneficial because people would spend less time clamoring for more government handouts because they would almost universally feel the effects of any spending increases. Such a change should also have the side effect of having people be more engaged in the process of removing representatives who ignore them because they would be more likely to feel the effects of whatever votes their elected officials cast.