This is an archived article that was published on sltrib.com in 2014, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
My home of Utah, the Beehive State, is so named for its virtues of thrift and perseverance. And just as those qualities helped build our state economy, the absence of them in Washington threatens our fiscal well-being.
Our national debt stands about $17 trillion — give or take a few trillion. You might think that Congress — given this situation — would understand the First Rule of Holes: When you find yourself in one, stop digging.
Emerging from this hole will take time; we didn't accumulate our debt in a year. We need to attack the problem on the tax and spending side. The federal tax code is a complicated tangle of rules that frustrates individuals and often rewards special interests over the national interest. Companies and individuals make decisions based on what gets them the biggest tax break instead of the best economic return.
There is some recognition that we can't continue doing the same thing that got us in this mess. In the House, Ways and Means Chairman Dave Camp offered a tax reform proposal in February that contained several thoughtful, long-term policy solutions.
Under this plan, the size and number of deductions, tax preferences and credits would be significantly reduced. Camp took the responsible approach by using real numbers instead of relying on uncertain revenues that would make the numbers look better. Prudent tax reform doesn't need to be bolstered by wishful numbers. Camp's approach would spur economic growth.
The issue I have with the tax reform draft is that it could worsen our long-term fiscal situation, and it does nothing to slow the growth of our national debt. All of the revenues produced are used to reduce rates and none are used to pay down our debt.
Still, Chairman Camp has displayed political courage and thoughtful leadership by producing such a draft. Whether all members of Congress can make such a leap and challenge the status quo is an open question.
Every day that our leaders do not address our federal debt, our country and our children's futures turn gloomier. With less capital available, businesses are less likely to invest and hire new workers. As interest rates on our national debt increase, more money goes toward servicing our debt instead of toward vital investments that strengthen and grow our economy. If we do not restructure our entitlement programs and tax code, our national debt will continue rising at a rapid pace.
Despite my concerns, I know we are a strong country that can, when necessary, make decisions for the common good — rather than the private good. I'm leaning on my fellow Utahns and Americans to let their leaders know that adding to deficits rather than crafting solutions won't help our future.
Thomas Wright is president of Summit Sotheby's International Realty, former chairman of the Utah Republican Party and a steering committee member of the Utah Chapter of Fix the Debt.