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  • A Modest Proposal: How to fix the American Economy 10 comments
    Dec 3, 2009 1:52 PM | about stocks: SPY, GLD, SLV, UDN, GE, C, BAC, MSFT, YHOO, KO, MCD, CEF, GOOG, AAPL
    Private Wealth Adviser: brokerdealers.us

    Democrats have some interesting ideas on how to fix the American economy.

    Most of those "ideas" revolve around Americans going further in debt so that Washington lawmakers can decide how and to whom they would like to dish out money.

    Massive tax increases on the most productive Americans are also on the table.

    How about this counterproposal:

    1. Cut payroll taxes on firms with less than $500,000 per year in gross revenues to ZERO until at least 2015.

    2.Eliminate the income tax and replace it with a National Sales Tax on all non-food and medical product purchases pegged at 8% and adjusted every 5 years to the CPI.

    3. Cut federal spending 2% EACH  year for at least 10 years.

    4. Close the borders, ports and airports to all foreigners from countries whose governments are hostile to the United States. Also ban long term visas to all those who do not (at least) hold a bachelor's from an accredited international university. Foreign visitors may not stay in the United States for more than 96 hours without registering with the DHS.

    5. Any company that manufactures its products overseas and hires mostly foreigners but considers itself an "American" company must pay an extra fee of at least 25% yearly gross revenues to remain headquartered in the United States. This fee money will go to the states with a note encouraging its use for "job training programs". ;)

    6. Let interest rates float on the open market and not dictated by the central planners at the Federal Reserve.

    7. In fact, let's END THE FED.

    Well what do you think?



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Comments (10)
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  • pigdog67
    , contributor
    Comments (2093) | Send Message
     
    Finally I am seeing someone talk sense. Many of the Big American companies now are about 80% outside the USA, like Ford, IBM etc. Why should they pretend to be American when it suits them.
    How about also adding
    8. Let the US President threaten to BOMB China unless they move to RENMINBI to parity with the dollar. Why bother with IRAQ and Afghanistan when it is China that is destroying the US economy by pegging their exchange rate at about 1 tenth of what it should be relative to the dollar. The CIA says that in Purchasing Power Parity, PPP, China's economy is now half the size of the US economy. Right now the US can still defeat China. In 10 years likely not. Right now China will have to cave. Oh but then the above multinationals will have to stop moving all the jobs to China.

     

    >>>
    5. Any company that manufactures its products overseas and hires mostly foreigners but considers itself an "American" company must pay an extra fee of at least 25% yearly gross revenues to remain headquartered in the United States. This fee money will go to the states with a note encouraging its use for "job training programs". ;)
    <<<
    4 Dec 2009, 12:03 AM Reply Like
  • FocalPoint Analytics
    , contributor
    Comments (5803) | Send Message
     
    Nice Post!
    6 Dec 2009, 06:08 AM Reply Like
  • H. T. Love
    , contributor
    Comments (17297) | Send Message
     
    1. Go a step further and eliminate the income taxes, or give a huge tax deduction, to those small firms. This thought based on the theory that through the small firm's blood, sweat and tears they have contributed far more than the average worker by creating the jobs in the first place and the less we take away from them the more they will re-invest. As the size of the firm grows the deduction could be gradually decreased.

     

    Chances of this ever happening? Zilch. Congress loses the blood that they depend upon to survive.

     

    But there should be no income tax at all, as you suggest and I comment upon below.

     

    2. A popular thought but misses the mark entirely. As I have posted in other comments, giving the federal government the ability to directly tax the citizens was the biggest single mistake ever made in this country, in my opinion. It immediately set the course for violation of personal property rights and removed any practical limit on federal spending. The sales tax only addresses inequity in taxation. But it leaves in place the threat to our property rights and the unfettered ability of the federal government to raise income to support its wanton spendthrift ways.

     

    Ditto for VAT or /any/ federally-levied tax on the citizens.

     

    The blood still flows from the victims to the parasitic vampire.

     

    3. I like this one, but we have to make sure it's real cuts, not the phony cuts - well we were going to raise this program 10% but now were going to raise it only 5% so that means we cut 5%.

     

    4. Unintended consequences here. Too many to address them all. But one example: presuming countries "hostile to the U.S." also have repressive regimes, we risk denying sanctuary to folks that need it and deny our long history of humanitarian relief for those sufferers.

     

    On a more pragmatic note, that proposal only saves lower skilled and lower wage jobs and allows the banksters (and other large and/or high-technology firms) to continue to import cheaper highly-skilled workers which devalues (if you believe in supply and demand) our home-grown degrees and compresses wages in those categories. Maybe some of those wages need to be depressed, but normal supply and demand should take care of that if we are all-arond sound in all our other policies and don't meddle in the markets.

     

    Further, since you mention small business, a high (relatively) percentage of immigrants, whether degreed or not, tend to start small businesses which implies some more U.S. jobs.

     

    Don't want to cut off our nose to spite our face here.

     

    5. Have you fully considered the side-effects of this proposal? As an un-patriotic (no slam intended, just noting that these companies have no national allegiance) organization, the natural side effect would be to incorporate in more friendly places. This already happens at the current tax levels.

     

    6. Agreed.

     

    7. I've been in agreement with this for a long time. The problem is that since the founding we have slid so far that we can't count on whatever mechanism replaces it to behave responsibly, especially any arm of the government. Sad, sad. That means that the constitutionally-mandated mechanism can not be relied upon any longer to work the way it was intended.

     

    But I still advocate abolishment of the Fed.

     

    My Humble Opinion,
    HardToLove
    6 Dec 2009, 07:13 AM Reply Like
  • H. T. Love
    , contributor
    Comments (17297) | Send Message
     
    I always love a good military solution to the results of our own immorality and ineptness. Keep up the good thoughts! I presume you are willing to sacrifice your family members to this end?

     

    No? Just the family of others?

     

    HardToLove

     

    On Dec 04 12:03 AM pigdog67 wrote:

     

    > Finally I am seeing someone talk sense. Many of the Big American
    > companies now are about 80% outside the USA, like Ford, IBM etc.
    > Why should they pretend to be American when it suits them.
    > How about also adding
    > 8. Let the US President threaten to BOMB China unless they move to
    > RENMINBI to parity with the dollar. Why bother with IRAQ and Afghanistan
    > when it is China that is destroying the US economy by pegging their
    > exchange rate at about 1 tenth of what it should be relative to the
    > dollar. The CIA says that in Purchasing Power Parity, PPP, China's
    > economy is now half the size of the US economy. Right now the US
    > can still defeat China. In 10 years likely not. Right now China will
    > have to cave. Oh but then the above multinationals will have to stop
    > moving all the jobs to China.
    >
    6 Dec 2009, 07:16 AM Reply Like
  • Freya
    , contributor
    Comments (2265) | Send Message
     
    The Constitution of the USA was designed with its citizens in mind.

     

    Trying to Impose our Constitution on other Countries is to deny them their Own Inalienable Rights. Trying to Impose our Values on the rest of the World is tantamount to a Dictatorship.

     

    We are not the Final Arbiters. Thats God's prerogative.
    6 Dec 2009, 07:50 AM Reply Like
  • tripleblack
    , contributor
    Comments (13440) | Send Message
     
    Assuming the posited question is valid, the answer begins with:

     

    1. The FairTax

     

    Everything else flows downhill from there, hopefully via a strict Constitutional channel run by Libertarians, but even without that last part, its the best path.
    6 Dec 2009, 08:30 AM Reply Like
  • FocalPoint Analytics
    , contributor
    Comments (5803) | Send Message
     
    The best idea is number 1.... bootstrap the small business owners - the seed corn of innovations. Of course, its not going to happen.
    6 Dec 2009, 12:21 PM Reply Like
  • Freya
    , contributor
    Comments (2265) | Send Message
     
    My point is that before we go abroad to "fix" someone else's problems by imposing our Ideologies on them, we should fix our own problems first. We spend Billions each year out of the USA to "aid" others. And each year we find ourselves further behind the eight ball as to how other countries view the attached "strings".

     

    Having said that, Individuals as well as Corporations should be taxed based on Income regardless of how that income is earned/shelthered.

     

    A one page IRS form listing Income/Earnings from all sources. XYZ Tax across the board. No exemptions. No loopholes. No writeoffs. No deductions.

     

    If something is to be Tax Exempt, let it be "Work" Bonds, the entire procedes being used to rebuild America's infrastructure.

     

    Get Buffet and Gates to pay their Fair Tax.
    6 Dec 2009, 02:23 PM Reply Like
  • Tom Au, CFA
    , contributor
    Comments (6775) | Send Message
     
    We should never have started the Fed, meaning that we should not have passed the 16th Amendment, gone over to paper money, and intituted an income tax. But given that we did all these things, the Fed ought to be the first to go.
    19 Dec 2009, 04:33 PM Reply Like
  • buyitcheap
    , contributor
    Comments (1848) | Send Message
     
    Like the ideas but would modify the 96 hour visitor rule - that would kill US tourism, not sure of the alternative, but more like Australia's would be a good option. Other than that, you have my vote for president.
    20 Dec 2009, 08:41 AM Reply Like
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