We have seen what happens when we allow our elected leaders and the Federal Reserve to spend as they wish: They pay off their friends and campaign supporters and leave the American people to pick up the tab in the form of budget deficits, higher taxes, and inflation.
What if the American people could tax the government?
We need a Constitutional Amendment which states: Whenever the U.S. money supply is increased for any reason, and by any means, the money will be evenly distributed among all the American people, and may not be directly taxed by the government.
So they think we need an extra $1 trillion in the money supply? No problem, just send all Americans a check for $3,333.
The money is not distributed through the banking system, like the Federal Reserve does now. Nor is it handed out to any special interest groups, as Congress likes to do with earmarks.
I came up with this idea when it occurred to me that we need a means for all Americans to deal with inflation whenever our government decides to increase the money supply. By creating more money and distributing it to specific groups, our government hurts the value of the dollars which "We the People" hold.
This will help to force fiscal discipline on our politicians. If they want to increase spending, they will have to increase taxes to pay for it, or else write a check to every American and wait for the money to come back through the tax system.
(On a side note, it would also encourage switching from an income tax to a consumption tax, since it takes up to a year for the income taxes to come in, whereas consumption taxes could come in continuously.)