I'm anxious to hear your plan on how to turn our economy around and achieve a fiscally responsible federal government? Please provide details.
First, sorry about the comment about you "happily benefiting from a Marxist tax code". It wasn’t necessary.
As for my plan... I don't have a plan. If I had the support of millions in donations, I would be more than happy to make one... but, government is pay to play these days, and I don't have enough to play. (If I was in charge, changing that would be high on my agenda. I don't believe it was ever intended that America's government be "of the super rich, for the super rich, by the super rich", but that's what we got).
I don't have a specific plan... but there are some thoughts.
I believe that stimulating demand is the key to economic growth... and with demand, capital investment will necessarily follow. NOT the other way around like some politicians seem to think. (Yes, I am getting at capital gains tax vs. income tax).
I believe that any tax system where every citizen doesn't pay an equal share is a socialist tax system. I also believe socialism is necessary in a properly functioning capitalistic democracy… and is not evil. I believe anything BUT a system where each citizen pays an equal share IS social engineering... so therefore, social engineering is a necessary part of our tax code. Because, seriously, no one believes in a system where everyone pays an equal amount.
And, since I believe social engineering is a necessary part of the tax code, I believe very strongly in the concept of upping taxes an those things we want less of, and lowering taxes on those things we want more of. In my opinion, we want commerce. So, we lower sales tax. We want more jobs for American citizens, and opportunities for American capital to be invested. So, we raise taxes on companies that have more foreign involvement in their supply chain, and we lower taxes on companies that have more American involvement in their supply chain. Hell, maybe if your supply chain is 100% American, you pay no corporate tax? (That gets pretty tricky to determine though.)
I believe in striving for "
perfect competition" as opposed to "free markets". Free markets by definitions are void of regulation. The economic equivalent of anarchy, with all the same dangers. The benefits typically associated with free markets are actually not realized under free markets, but under perfectly competitive markets. Market equilibrium, and therefore market efficiencies require perfectly competitive markets, not free markets. And perfectly competitive markets REQUIRE outside involvement, in the form of a referee. Therefore, I believe the role of government involvement in otherwise free markets is to enforce the conditions that push markets as close to perfect competition as possible… NOT influencing prices.
I believe in as small a government as possible. But, I also believe in a strong social safety net. I believe in localizing decision making as much as possible. Therefore, I would gut the federal government as much as possible. Anything that could be pushed to states would be, and I would let them decide if they wanted to continue to run the program.
I don’t believe in pitting wage earners against wealth holders. I don’t believe that the time that someone employs is worth less to society than the capital that someone else employs. Further, the argument that capital gains should necessarily be taxed at a rate less than wages to stimulate investment is flawed to the core in my opinion. You can invest capital ‘til the cows come home… but if there is no demand, there is no economy. You stimulate demand by putting disposable income into the MOST hands… and you do that by keeping taxes on WAGES low. (I don’t know the exact figure, by the proportion of people who live off their own of someone else’s WAGES, vs. those who live off capital gains is huge). And, in cases where we need jobs, and we have trillions of capital sitting idle on corporate balance sheets (like we do right now), you should actually be taxing capital gains at a rate higher than wages. Again, on the principal that you raise taxes what you want less of, and lower taxes on what you want more of… it’s obvious… we need more cash in the hands of the masses and more jobs to stimulate demand, and less cash sitting idle on corporate balance sheets. You achieve that by increasing tax on capital gains, and lowering it on jobs (wages). You free up that cash to drive demand.
I believe that debt should be used only for long term infrastructure projects, and NEVER for financing shortfalls in annual operating budgets. We’ve got to stop living above our means at the expense of our children. We are outright stealing from future generations.
As for a plan… I don’t know exactly, but it would certainly include short-term tax increases (followed by long term tax cuts once the debt is under control), tax code simplification, stimulation of demand, huge spending cuts, gutting of the federal government down to core function of defense, management of national resources (national parks, etc.), social safety net, national infrastructure development and management (interstate highways, etc.), enforcing elements of perfect competition (enforcing complete information, etc.).
It would include a balanced budget law, and strictly outlaw the use debt for funding annual expenses. Any use of debt will only be considered for specific long term projects that will provide benefits to society for the long term. It will cap the national debt at some fraction of GNP… maybe in the 20-30% range, not the insane 95+% we are at now. And, in the short term, I would require not only a balanced budget, but an aggressive debt reduction plan…. I’d like to see $1 trillion surpluses every year to pay down debt, but that isn’t realistic.
Anyway, no, I don’t have a plan. But, if you know anyone with a few million to donate to a politician, I would be happy to consider a career change and write one…
