The new law will remove restrictions on cigarettes, drugs, and alcohol as well as provide tax incentives for seniors who bungee jump off of cliffs.

The federal debt of almost $14 trillion is currently about $45,000 for every person in the United states. Civic discourse about cutting taxes or public services, who should pay and who should get, has been divisive, adversarial, vehement and less productive than ever. I would like to propose a solution.

We were delivered “The Moment of Truth” from the nonpartisan National Commission on Fiscal Responsibility and Reform last month. This presidential commission proposes to achieve “nearly $4 trillion in deficit reduction through 2020, more than any effort in the nation’s history” while reducing “the deficit to 2.3 percent of GDP by 2015″ (it stands at 8 percent). Co-Chairmen Alan Simpson and Erskine Bowles left the 12 lawmakers on the committee to wrangle with what might make it through Congress without goring someone’s ox. Furthermore, the commission proposals only slow the growth of long-term debt, they don’t solve the problem. And they can’t even agree on that. The commission asks for suggestions: Here’s mine.

We’re deeply in debt, so let’s think big. Imagine that you own 50 properties; wouldn’t you consider selling the biggest liability, one that costs more than it brings in? One that is worth enough to pay off your entire debt? In this case a property big enough to raise $14 trillion.

Think Alaska.

With only about 700,000 people (0.2 percent of the U.S. population, overrepresented with 0.56 percent of electoral votes), Alaska is No. 1 in receiving more federal funds than it contributes in taxes. Ironically, many Alaskans don’t even support principles of federalism. Free of federal control, Alaskans would not have the $45,000 individual debt shouldered by other Americans, nor would they have to pay federal taxes, nor have Washington tell them what they can and cannot do.

Alaskans are familiar with the sale of public lands. The United States bought Alaska from Russia when it was in a difficult financial position in 1867 for $7.2 million (“Seward’s Folly“), about 2.3 cents per acre, even less than the 3 cents per acre for the 1803 Louisiana Purchase from France.

At $33,000 per acre for 424,491,520 acres, Alaska is a good deal. According to EconPost, “the economic output of the state of Alaska was $48 billion in 2008. … During the years of 2000 to 2008, Alaska GDP grew at an annual rate of 7.4 percent in nominal terms and in real terms the economy grew by 1.3 percent.” Imagine the potential without federal control.

Alaska could boom with gambling and entertainment, and privatized government services like prisons, camps, waste disposal. Without federal restrictions, Alaska could become a nuclear giant, exporting electricity to the rest of North America. For such activities and its income potential, $33,000 an acre is a steal (remember, no property tax). Alaska is a good investment with lots of resources to be extracted and great farming futures. Market magic – a good way for Alaska to go.

Selling Alaska would need a master salesperson (1 percent commission of $14 trillion is $140 billion, plus 5 percent of anything over the opening bid): Someone who could really sell Alaska, who on a clear day with a good scope could get the attention of Russian investors, who can entice Chinese capitalists producing new 49-star American flags, or corral conglomerates of mining, fishing, oil and financial services industries for tax havens.

Paying off the national debt would clear our individual $45,000 obligations, clean the slate, and buy the other 99.8 percent of us time to work through our differences.

Steven Paskowitz of Berkeley is a former public administrator and taught public administration and finance.

This article appeared on page A – 10 of the San Francisco Chronicle

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/12/28/ED8S1H0GPS.DTL#ixzz19izFjLX9

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