Wednesday, July 16, 2008

Economic Fix

Everyone that can get in front of a camera or get their words in print has a thought about how we fix what ails us. What is it that ails us?

Let's start with the price of gasoline, which is hitting all of us in the pocketbook. We can then add the enormous ripple effect of subprime loans, which has dried up liquidity as never before, and the value of the dollar relative to other currencies.

Looking long term, we have enormous legacy costs at the federal level, due to continuously increasing entitlements. These legacy costs have the ability to drowned our country. So...what do we do? Here are several steps our elected folks can take that would help.

1. Shore up the dollar. This will involve raising interest rates, among other things. However, it will increase our competitive posture worldwide, and help bring gas prices down.

2. Eliminate corporate tax rates, and if we must have an income tax, lower cap gain taxes to 10% or less, and cap personal income taxes at 15%. There is more than enough evidence to confirm that every time tax rates are lowered, federal and state tax collections increase.

3. Encourage creation of a futures market for oil, to remove some of the volatility of the spot market.

4. Allow limited drilling in the ANWR, as well as offshore, and encourage utilization of nuclear power.

5. Stop, immediately, the federal bailout of corporate America. This includes Freddie, Fannie, Bear Sterns, any and all of their friends, Chrysler, and any other mismanaged corporate entity that cries to Washington for help. They need to die, whether a fast or slow death, to keep the air clean for the survivors.

6. Allow all taxpayers born in 1975 and later to make decisions about the investment of their social security withholdings.

7. Do away with the deductibility of health insurance at the corporate level. Have all consumers purchase health insurance on their own, with premiums fully tax deductible. Mandate a 10% premium surcharge to provide a state funded and administered health fund for the uninsurable. Absolutely and under no circumstances can this plan be funded or administered at the federal level.

8. Encourage Health Savings Plans that allow deductibility of up to $5000 per person per year of deposits to an HSA.

9. Mandate that all federal and state entitlement programs be used only for citizens of the United States.

10. Enforce the immigration laws by sending home all illegal immigrants at their expense.

11. Loosen the immigration rules, such that those from other countries who want to come to America, to work, become citizens, pay taxes, invest in their future, and learn English as their primary language, are encouraged to come. Those who don't want to participate in and assimilate to the dominant culture should be denied entrance.

These steps, taken together, will send tax collections straight up, ignite the formation of new business and wealth, create employment, reduce the drag on federal and state funds, and put more citizens in control of the health and their retirement.

Until next time...

Randy

No comments: