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Government must have a budget constraint

Comments on David Uren "No doubt about it, taxes will have to rise", 6/12/2012, http://www.theaustralian.com.au/business/opinion/no-doubt-about-it-taxes-will-have-to-rise/story-e6frg9qo-1226530770321

I think government should establish a law similar to the California's but with a in-build flexibility, that is, to set a maximum percentage of all revenue to GDP, say 30%.

The current political landscape is unfair, with the ALP increasing spending and the size of government with no limit, while when the opposite political party is in government they reduce spending reduce debts.

It will be a fair game for political parties to have a hard budget constraint and it should be the same for both political sides.

If any party wants to go over that limit, it needs a referendum. If any party break the rules, the ministers and the caucus must pay from their own income and assets.

Only in that way, will political parties focus on creativity and innovation in policy to generate the maximum benefit to the nation for the given constraint.

Working families have to live within their means. Government should also live within its means. AND its means should only be a proportion of the size of the economy.

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