The Americans have come up with a wizard wheeze to enable them to pay down their federal debt.
A bill called H.R.2411.(IH) – Reduce America’s Debt Now Act of 2011 , has been put forward to the Committee on Ways and Means.
This bill puts in place a mechanism whereby employees can voluntarily have money deducted from their wages by their employer and have it passed directly onto the US Treasury for the purpose of paying down the US government debt mountain, which sits now at about $14 trillion.
The money is first put into a holding account, which is then emptied monthly into the US debt black hole.
To make this even more effective these donations are not tax deductible.
The effective date for this bill is 31st December 2011.
Now I wonder if US employers will be ‘encouraged’ to make this an opt-out scheme as opposed to an opt-in one.
For some reason I can’t envisage millions of workers queuing up to hand over a few measly dollars a month to effectively help the US government to fund more wars and bail out more banks, can you?
And if you can’t squeeze enough money out of the rich and powerful, why should the poor and weak be asked to voluntarily pay more?
There is also the cost of administering this scheme, it may well exceed the money taken in so be self defeating anyway (other than salving a few peoples’ consciences maybe).
Wonder how long it will be before David Cameron et al come up with a British (or European for that matter) version. Looking at how much the royal wedding bank holiday cost the country in lost business and therefore tax revenue, maybe a 2012 with no bank holidays and all profit and extra wages going to the UK Treasury would raise enough?