Here at Retirement Think Tank, we like Warren Buffett a lot. After reading his somewhat humorous (but still serious) comment about the debt ceiling, we like him even more. In an interview with CNBC, Buffett offers his advice on fixing the debt ceiling:
“You just pass a law that says that anytime there is a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for re-election.”
Moreover, Mr. Buffett has requested a new ammendment to the Constitution targeted at members of Congress.
Congressional Reform Act of 2012
1. No Tenure / No Pension.
A Congressman/woman collects a salary while in office and receives no
pay when they’re out of office.
2. Congress (past, present & future) participates in Social
All funds in the Congressional retirement fund move to the
Social Security system immediately. All future funds flow into
the Social Security system, and Congress participates with the
American people. It may not be used for any other purpose.
3. Congress can purchase their own retirement plan, just as all
4. Congress will no longer vote themselves a pay raise.
Congressional pay will rise by the lower of CPI or 3%.
5. Congress loses their current health care system and
participates in the same health care system as the American people.
6. Congress must equally abide by all laws they impose on the
7. All contracts with past and present Congressmen/women are void
effective 1/1/12. The American people did not make this
contract with Congressmen/women.