Want to avoid future “fiscal cliffs”? Eric Singer, portfolio manager of the Congressional Effect Fund, argues for three reforms. First, adopt Economist Thomas Sowell’s idea to pay Members of Congress at least $1 million a year, but make the pay subject to all the rules and tax rates experienced by every other taxpayer. Second, pass Warren Buffett’s proposed constitutional amendment to ban from reelection any current member who presides over a budget deficit. Third, require members to forfeit any pay increases when there is a budget deficit. According to Singer, the result would be timely, serious budgets.
Why this approach?