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The Responsibility Amendment

I propose the following Constitutional amendment to counter the incentives to spend tax dollars:

At the end of each year, the President and each member of Congress shall receive even shares of one percent of the net amount by which total federal government expenditures decreased over the previous four years.

Suppose the Congress and the President reduced government spending by 25 billion dollars every year. Then, at the end of every year, the savings over the previous four years will have been 100 billion dollars. One percent of 100 billion dollars is one billion dollars, which would therefore be evenly divided among the President and the 535 members of Congress each year. Each would receive a bonus of nearly two million dollars each year.

Suppose inflation were 10% per year. After four years, the bonus could buy about half of what it would have bought, and thus politicians would have an incentive to not cause inflation.

As soon as the Responsibility Amendment passed, the US credit rating would instantly improve, and the US dollar would be the most stable and valued currency compared to all others, thus increasing the buying power of all Americans.

Jim
 

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Dennis Gorelik - March 20, 2010

I like the idea.
But I would be more generous:
Good executive deserve at least 5% of corporate profit.
So why not give President and Congressmen these 5%?

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