On April 28th, Mark Fernald, with Fernald, Taft, Falby & Little in Peterborough, addressed the Rotary Club of Nashua regarding spending and budget making in the current times with cuts coming from the state and federal coffers to support state and local programs. Mark is a member of the Kiwanis Club in Peterborough.
Mark cited the constitution to start his presentation, “We,the People….”. He is citing the original purpose of the constitution to encourage the people to provide input and direction to government. He focused on the Myth of Runaway Federal Spending. He writes frequently in local newspapers and on podcasts on the government spending issue. Is the government spending bigger than the proportion growth to the economy and population? Pretty consistent last 40+ years at about 20% of the GDP +/- 3 %.
Current cuts are to satisfy myth of runaway spending with drastic slashes in employees of various government agencies. Population 50 percent higher than 1981. In 2000, government program spending represented 20% of gdp and in 2023, it is now at 16.5 %.
Social Security is distributing more than in past due to retiring of baby boomers. More changes for the current retirees will be coming. Income tax revenue is not providing the revenue expected.
How to reduce deficit is by being able to reduce spending or increase revenue. Some revenue ideas are to end step up tax basis on death, Increase the upper limit of social security tax, adopt worldwide system for taxing multination corps, increase corporate tax from 4-25%, adjust the gas tax, enact financial transactions tax. Reduce estate tax threshold to 3.5 million per person would result in $400 Billion increase in revenue.
He received questions throughout the presentation on different financial topics and issues. He wants to see discussion based on actual numbers and what will be good for the future. Budget making is too political currently. Reviewed progressive and regressive taxes.