Every time something goes wrong in America, Obama and Congress use it as an excuse for more government. Is the economy failing? Spend $800 billion on government make-work. Are the automakers failing? The government takes them over. An oil well breaks? Time for more government wind energy subsidies.
But not every country takes the same path. The former Soviet satellite state Hungary held elections in April, and the conservative party won 68% percent of the seats. It passed sweeping reforms, like a 16% flat tax and a 15% cut in all government employees’ wages.
In a speech to the Hungarian Parliament last week, Prime Minister Viktor Orbán gave his reasons for a flat tax:
In eight years, the Hungarian national debt went up from 53 percent to nearly 80 percent [of GDP]. This is an assault not only against contemporary Hungarians, but against future generations too...we need a ... work friendly tax system… so simple that a person with only eight grades of primary education could understand the rules.
Guess when the U.S. government debt is expected to reach 80 percent of GDP? Just four years from now, in 2014.
The Obama solution: raise taxes and spend more. The Hungarian solution: cut taxes and spend less.
The Hungarian PM called for a temporary “full stop on telephone, furniture and vehicle purchase and replacement in the public sector.”
And he spoke against stifling bureaucracy:
It is not only tax cuts we need, but we must also start to cut red tape that is paralysing the economy in Hungary… the authorities should not rule, but should serve people -- should not set up barriers, but demolish them…