My Economic Plan

[TomL]

PART I

Three 10 Tax Plan​

This is another simple tax plan. The difference between this plan and others is this is a pro-American plan.

First we must eliminate all other forms of Federal taxation whether direct or indirect, with the exception of Social Security, and replace it all with the following:

Update: 2-9-12

The Border Tax Provision was removed as the Jobs portion of my plan calls for tariffs.

1. A 10% Tax On Revenues Of Individual States.​

This is a 10% tax on the revenues, no matter how derived, of the several states in the United States of America. Each State has sources of revenue. 10% of those revenues will go to the Federal Government.

2. A 10% Tax On Revenues Derived From The Sale Of Foreign Goods And Services.​

This is a 10% tax on all revenues that come from the retail sales of all goods and services that do not originate within the boundaries of the United States of America.

3. A 10% Tax On All Primary Retail Revenues.​

This is a 10% tax on all revenues derived from retail sales of goods and services in the United States of America. This is a one-time tax on goods. However all retail services are subject to this tax.

How do these retail revenue taxes work?​

Here's an example. An individual is the first buyer of a car. The dealership pays a 10% tax on the revenue from the sale of that car. If the car is a foreign made car, the dealership pays an additional 10% on the revenue from the sale of that car. When the individual who bought that car then sells that car he pays no tax on the revenue he gets from the sale of that car. If he trades the car in on another car, the dealership that then sells the same car pays no taxes on the revenue from the sale.

Let's say the dealer price of this car is $20,000. After the sale, the dealer pays 10% tax which is equal to $2,000. If a foreign made car, another 10% tax is paid which is another $2,000. Total tax is $4,000. If a dealer were to adjust the price in anticipation of this tax to $24,000. Then the tax burden is $4,800, because the tax is assessed after the sale of the car, not before.

The border tax is already explained, and the State Revenue tax I think is self explanatory.

This plan also calls for the repeal of the current tax code and the 16th Amendment.

PART II

Pro-American Jobs Plan​

The President, along with Democrats and Republicans, talk about creating jobs, but I don't believe they are serious. If they were they would advocate the following:

1. With Capital Gains and Corporate taxes eliminated, investors should have no fear that when they make a sound investment that the government is going to swoop down like a vulture and grab the profit they make. Business owners should have no fear that when they do make a profit, that instead of sharing it with their workers or investing it back into their business, the government should grab it like a hungry fox in a hen house. We should not simply reduce the level of taxation to zero. We need to repeal all laws that allow the government to take that money in the first place. If the laws remain on the books, future liberals could start taking that money again.

2. We need to eliminate all OSHA regulations. These regulations add a costly burden to the cost of doing business in the United States. Those regulations should be in the purview of the States.

3. We need to eliminate the Environmental Protection Agency, and all the regulations that go with it. Again, those regulations should be in the purview of the States.

4. We need to stop enacting unfair trade agreements that do nothing but open the U.S. market to other countries creating a trade imbalance, and create loopholes for U.S. companies to move to other countries. And as quickly as possible we need to get out of the unfair trade agreements already enacted. The only trade agreements I would favor are ones that say, "If you want to sell your manufactured goods in the United States, they must be made in the United States.

5. Congress should levy tariffs on all goods coming into the United States to recuperate lost revenues due to the elimination of Capital Gains and Corporate taxes. These tariffs would last no more than 10 years, allowing the United States time to enter into "Manufacture in the United States" trade agreements.

What this 5-point plan would do, theoretically, is encourage investment in American markets, and put Americans back to work. By allowing the States to tax and regulate business as they see fit, would set up competition between the States. The States with the most conservative tax and regulative policies will get the most business, and the States with the most liberal tax and regulative policies will get the least business, in theory. Either way, the American people will benefit from a better business climate in the United States.

This plan would give the American worker a level playing field. It would spur investment without the fear of government taking the profits. It would reduce the cost of doing business in America. It would give incentive to businesses that have moved factories out of this Country to bring them back into this Country. It would put trade deals on an equal footing. We need balance of trade, and we should not enter any unbalanced trade deal, and we should get out of all unbalanced trade agreements.

PART III

My Spending Plan​

This seems to be the biggest part of the economic debate, which is spending. What to do about entitlements. Where should the spending cuts come from. There are those who would like to make cuts in entitlements. Others who would like to make cuts in defense. Some want to make cuts in housing subsidies and food stamps. I'm not in favor of either. At this time, I ask that you read the quoted article I wrote about entitlements. By doing so you will have an understanding of where I am coming from regarding entitlements.

My understanding of Entitlements you could say is the difference between "now and then."

Does anyone remember what this nation was like before entitlements? Parents took care of their children, and when the parents got old, the children took care of their parents. Parents were not shoved into a home and forgotten about, paid for by some entitlement. In times of trouble, communities helped one another, and churches helped people as well.

Even during the "great depression," THERE WAS NOT ONE ENTITLEMENT THAT HELPED ANYONE. I wanted to make that point plain. If you can find one entitlement that helped one person through the great deperession, I would like to know about it. There was no cash assistance, no food stamps, and no Social Security. By the time any governemnt program started, the depression was pretty much over.

You might wonder where I get my facts. I talked to people who lived through those years, like my dad, my mother, aunts and uncles, and older people when I volunteered at a nursing home. One lady was very specific. While the government would have us believe that if it weren't for the government people would not have made it though the great depression. But, older folks that lived through those days had a different story. That one lady at the nursing home pretty much hated the government for their lies. She was upset with her children for putting her in a home. "This didn't happen when I was younger," she said. "We took care of our parents." She had a lot to say about those days. I will never forget her.

If you want to see what life was like in this country before entitlements, simply read or watch "Little House on the Prairie." When the Ingalls suffered through a tornado that destroyed the entire crop, and killed their cow, there was not one government program to apply for aid. It was the people of Walnut Grove that helped the Ingalls family. And that is what life was like in this country before entitlements. "People helping people" was more than than a slogan, it was a reality. Of course, to make things interesting, Walnut Grove had Mrs. Oleson, their resident capitalist. If redistribution of the wealth is evil, it seems the people of Walnut Grove were very evil. Because, to help the Ingals family, they, at times had to redistribute the wealth. And that is the way it was. People helping people by distributing to anyone who had need. And it was all done without some Government Control Program.

This country survived very well without Federal Entitlement/Government Control Programs for about 150 years.

That was then. What about now? For that part of this discussion, I will draw on personal experience. And I hope I do not lose any respect from those who hate Entitlements, because I hate them too. And I wouldn't be on any if I didn't have to be.

In 1977 I developed something in my left ring finger that was very painful. Bumping that finger felt like being hit by a sledge hammer. I had to really protect that finger or suffer excruciating pain every time I bumped it. It is really hard to work with your hands when you only have one hand that you can use. So, I went to see a doctor. He said I needed surgery. Well, I didn't have the money, neither did my family. So I went to the church I was a member of. The preacher told me to go to the government for help. I had no choice. About 15 hospitalizations later I am still on Government Control Programs. And that is what they are.

I hate it. Federal Entitlements have ripped the heart and soul out of the nation. My church telling me to go to the government for help is just plain wrong. But, that is a symptom of a greater problem. People don't help people anymore, not like they did. Why should they when the government does it? But these goverment programs are not about helping people, they are about government control.

Becuase of my situation, I understand both sides of the Entitlement issue.
The reason there are so many people on entitlement programs is because Government has created and atmosphere where they have to be. Overtaxation, overregulation, free trade agreements that do nothing but send jobs overseas, have all created this atmosphere. The economy is being destroyed by the Government, as a result, people are losing good paying jobs, being forced to to get jobs that do not pay as well, if they are fortunate enough to get a job at all. My conservative friends know these things to be true, but fail to see the connection between the government destruction of the economy and the need for people to collect from the government. It seems to me that everytime we have economic problems in this country we place blame on poor people, instead of blaming those that have created these economic problems in the first place, which is Congress. Congress has been whittling away at our economy and our freedom for at least the last 50 years, and it's time for that to change.

If we want to do something about Entitlements, we must first change the direction of our Government. Therefore, I propose we end all business taxes, end all OSHA regulations, create a minimum wage system that is based on the cost of living. No one should be denied a living wage. I further propose that we end our participation is job stealing treaties, such as NAFTA. I further propose that we once again collect tariffs. These steps would once again allow businesses to earn a decent profit, while at the same time hire American workers, and pay them a living wage.

In the 60s and early 70s, there were all kinds of factories. Shirt factories, undergarment factories, etc. But, today, even the "Great American Chocolate Bar" is made in Mexico. We need to bring those jobs back to America. When we do that, then we can do something about Entitlements.

I use to be a radio announcer, but because of national shows like Rush Limbaugh, Sean Hannity, Glenn Beck, Michael Savage, etc., and radio stations being controlled by computers, or satallite hook up, people like me are no longer needed. So we can't just simply say we need to get rid of Entitlements. It would be inhumane to all of a sudden take people off Entitlements when they are dependent on them.

I hate what Entitlements have done to this country, and if we could just end them without hurting anyone, that would be great. But that is not reality.

So, I think now you understand that in my spending plan, entitlements are not on the chopping block. I believe the best entitlement reform in a job. When America is working again, entitlements will become the safety net they were designed to be. They were not designed to be a way of life.

The abiding principle in my spending plan is that government must not spend more than it takes in. That would pose a bit of a problem. In the short run, if my tax plan and my jobs plan would be in place, revenues to the Federal Government will likely go down. In the long run, I believe revenues will go up as the economy goes up. When Americans are back at work, they will have more money, and their buying power will also go up.
When they buy more, revenues to the Federal Government will also go up, which will ease the short term budgetary shortfall.

The equation in my spending plan is very simple. 10% of revenue goes to paying down the debt, and 90% goes to government spending.

The Chopping Block​

My spending plan calls for the elimination of whole departments. But I believe it would be easier to list the Departments, Agencies, Offices, etc., not on the chopping block.

1. The State Department
2. The Defense Department
3. The Commerce Department
4. Bureau of Citizenship and Immigration Services
5. The Transportation Department (limited)
6. Bureau of the Census (limited)
7. Copyright & Patent Offices
8. The Federal Court System
9. The Justice Department
10. The Treasury Department
11. The District of Columbia
12. The Federal Communications Commission
13. Congress
14. Social Security Administration

If a Department, Bureau, Agency or Office is not in the above list, then I believe they should be eliminated. These Offices will allow the Federal Government to fulfill it's Constitutional duties. This is all we should be spending on besides entitlements.

Now, in order to educate you, I give you a link to the A-Z Index of U.S. Government Departments and Agencies.
http://www.usa.gov/directory/federal/index.shtml There is no reason we have all those departments, bureaus, agencies and offices. There are thousands. And these people in Washington today are having a hard time figuring out where to cut.

That is my economic plan for America. If you like it, please tell Congress. If you don't, please tell me. I am not beyond learning.

If Ron Paul would sign on to this plan, he would be a perfect candidate in my view. My plan is based largely on many things I heard Ron Paul say.

 

[ShaneEnochs]

That plan is a whole lot like Cain's plan. National sales tax? Plus it'd be hella hard to get the Congress to repeal the 16th amendment. By the way, many states are nearly bankrupt already. Making them pay taxes to the government will push them off a cliff. The crossing the border tax is pretty harsh as well.

 

[truelies]

Tom ya make Cain look good and he is a witless loon. Don't quit yer dayjob, k.

 

[The Gold Standard]

The best plan is to eliminate all economic plans and planning.

 

[TomL]

That plan is a whole lot like Cain's plan. National sales tax? Plus it'd be hella hard to get the Congress to repeal the 16th amendment. By the way, many states are nearly bankrupt already. Making them pay taxes to the government will push them off a cliff. The crossing the border tax is pretty harsh as well.

First of all, my plan has no National Sales Tax. They are retail revenue taxes. They are not added at the point of sale.

You might be right about Congress repealing the 16th Amendment.

With the elimination of all federal direct taxes to the people, and shifting of many of what the Federal Government does as far as regulation to the states, the states will probably have to raise taxes anyway. And without the federal tax burden to the people, they will better be able to afford the taxes the state governments levy.

The border tax is mainly for foreign goods and services. We could eliminate the travel portion of the border tax. But the travel portion of the border tax was to make the border tax uniform which is Constitutional.

I don't see how my plain is like Cain's plan. My plan eliminates all direct taxes, and corporate taxes. No 9% sales tax, no 9% corporate tax, and no 9% income tax. So, how can you say my plan is a lot like Cain's plan?

 

[Travlyr]

How about we legalize freedom and let people keep what they earn? Washington D.C. has raped the country enough already. Economics will take care of itself. Enough with the Socialism...

The 10 PLANKS stated in the Communist Manifesto and some of their American counterparts are...

1. Abolition of private property and the application of all rents of land to public purposes.

2. A heavy progressive or graduated income tax.

3. Abolition of all rights of inheritance.

4. Confiscation of the property of all emigrants and rebels.

5. Centralization of credit in the hands of the state, by means of a national bank with State capital and an exclusive monopoly.

6. Centralization of the means of communications and transportation in the hands of the State.

7. Extension of factories and instruments of production owned by the state, the bringing into cultivation of waste lands, and the improvement of the soil generally in accordance with a common plan.

8. Equal liability of all to labor.

9. Combination of agriculture with manufacturing industries, gradual abolition of the distinction between town and country, by a more equitable distribution of population over the country.

10. Free education for all children in public schools.

Complete separation of money and government. Honesty in trading. Enforce the rule of law. Bring the troops home.

 

[TomL]

Tom ya make Cain look good and he is a witless loon. Don't quit yer dayjob, k.

Is that the best you can do? Have any specifics?

 

[Jtorsella]

I stopped reading at the part about an imports tax. Protectionism doesn't work.
Great article by Rothbard:
http://mises.org/rothbard/protectionism.asp

 

[TomL]

How about we legalize freedom and let people keep what they earn? Washington D.C. has raped the country enough already. Economics will take care of itself. Enough with the Socialism...

What you just said here is the foundation for my plan. Let the people keep what they earn (no imcome taxes), that will give the people of this country economic freedom. Get the government off the backs of the American by eliminating direct taxes and all federal regulations. And that is what my plan does.

I hope you weren't say my plan reminds you of the communist manifesto.

Complete separation of money and government. Honesty in trading. Enforce the rule of law. Bring the troops home.

Complete separation of money and government would be unconstitutional. I agree with honesty in trading, enforcing the rule of Constitutional law, and bringing the troops home.

 

[TomL]

I stopped reading at the part about an imports tax. Protectionism doesn't work.
Great article by Rothbard:
http://mises.org/rothbard/protectionism.asp

If you take a part of my plan out of context you might conclude errantly that my plan is protectionist. Quoted here is a portion of another article I posted:

"Made in America trade treaties." If another country wants to sell their goods in the United States, they have to make those goods in the United States. Likewise, if we want to sell our goods in another country, we have to make them in that other country. This will help with our problem with the southern border. We should re-negotiate NAFTA, and amend it. If Mexico wants to sell it's goods in the United States, they have to make them here. Likewise, if we want to sell our goods in Mexico, we have to make them there. This will create a jobs base in Mexico, and the need for Mexicans to come to the United States illegally will be diminished.

These types of treaties will help all of us. Sharing the jobs and the markets is the way to solve problems even in the global economy. So, not only does the United States need my plan, so does the rest of the world.

We are currently in a trade imbalance, and the United States is at the short end of the trade stick. My plan promotes balanced trade. The tariff suggested is limited to 10 years to give the President and Congress time to enact "made in America" trade agreements and to re-negotiate the current unbalanced trade agreements.

I don't believe my plan is protectionist.

 

[Jtorsella]

If you take a part of my plan out of context you might conclude errantly that my plan is protectionist. Quoted here is a portion of another article I posted:

We are currently in a trade imbalance, and the United States is at the short end of the trade stick. My plan promotes balanced trade. The tariff suggested is limited to 10 years to give the President and Congress time to enact "made in America" trade agreements and to re-negotiate the current unbalanced trade agreements.

I don't believe my plan is protectionist.

Sorry, but that is protectionism.

 

[TomL]

Sorry, but that is protectionism.

If China wants to sell their goods here, they would have to buy/build factories here and make their goods here. Also if American businesses want to sell their goods in China, they would have to buy/build factories in China and make those goods in China. It's called a Reciprocal "Made In" Trade Agreement. How is that protectionism?

 

[helmuth_hubener]

Tom, cutting spending is key. If you don't want to cut transfer payments, and you don't want to cut the military, you can't cut very much. OK, you want to ax OSHA, EPA, and a bunch of others, but that's not going to substantially reduce the budget. Ron Paul's plan goes from 3.6 trillion to 2.6 trillion in one year. Frankly, that's not nearly enough, and I'm confident that actually, if he's elected President, Paul would push much more aggressively for even more cuts than that. We need to get down to 1 trillion, very very quickly (immediately) and then 500 billion, and then 200 billion, then 50 billion, and then by the end of Paul's first term we're looking at a proposed federal budget of 20 billion after the previous year's budget of 50 billion and the country is starting to look actually free again.

I'm sorry (no I'm not) but I don't care one single bit about these so-called entitlement programs. No one's entitled to a monthly check on my dime. Burn the checks. Demolish the IRS building. And breathe the free air.

 

[ILUVRP]

i still think my idea is very good.

1) everyone gets the first $30,000 with no tax ( even gates/buffet ) , then pays 20% on anything over 30k, no deductions for anything , no one could bitch as everyone gets the 30k.

2) all business pays 20% tax on the profits they tell their stock holders they made , if they have 100 million shares and tell stock holders they made $1/share that is 100 million, now they will tell the goverment they lost 50 million ( loop holes ) and get a tax refund.

as a futher note , i will believe congress wants to cut spending when they reduce their staff and their office budget.

 

[Travlyr]

What you just said here is the foundation for my plan. Let the people keep what they earn (no imcome taxes), that will give the people of this country economic freedom. Get the government off the backs of the American by eliminating direct taxes and all federal regulations. And that is what my plan does.

I hope you weren't say my plan reminds you of the communist manifesto.



Complete separation of money and government would be unconstitutional. I agree with honesty in trading, enforcing the rule of Constitutional law, and bringing the troops home.

Your plan is too controlling. You tax too much, you spend too much, and you meddle too much. Redistribution of wealth is not government's job. Controlling wages doesn't work. Excessive taxation enriches the people who work for the government at the expense of productive people... it stifles innovation. Why keep the FCC? Why keep minimum wage laws? Why keep entitlements?


Complete separation of money and government is unconstitutional. It shouldn't be. Yet, I would take lawful money over the counterfeiter's currency any day. The sooner the better. But ultimately, it would be great to amend the constitution to allow people complete freedom from control by others.

 

[archangel689]

"For there is one crucially important power inherent in the nature of the State apparatus. All other persons and groups in society (except for acknowledged and sporadic criminals such as thieves and bank robbers) obtain their income voluntarily: either by selling goods and services to the consuming public, or by voluntary gift (e.g., membership in a club or association, bequest, or inheritance). Only the State obtains its revenue by coercion, by threatening dire penalties should the income not be forthcoming. That coercion is known as “taxation,” although in less regularized epochs it was often known as “tribute.” Taxation is theft, purely and simply even though it is theft on a grand and colossal scale which no acknowledged criminals could hope to match. It is a compulsory seizure of the property of the State’s inhabitants, or subjects."


And don't start babbling about how it's constitutional, I didn't agree to the constitution.

There is no Social contract.

Yes, we are citizens of the State default, by virtue of our birth. But, we never really made a voluntary agreement to support the State.

And, yes, it would be nice to live outside the State in our own land of paradise unless some State comes in and thrashes us out claiming the area to be it's own. All in the name of the 'social contract'.

 

[helmuth_hubener]

So what do you think of my economic plan? $50 billion federal budget by 2016, entire executive branch eliminated (maybe 3 cabinet posts remaining out of the current army of millions of bureaucrats), all unconstitutional laws nullified by Presidential pardon. Thoughts? Sound good?

 

[Travlyr]

"I like it. And take the federal budget to $50 million by 2020."

 

[archangel689]

I would take a seriously look and break down who this debt is owed to and investigate it. I wouldn't presume outright that 100% of it is legitimate debt.

 

[jason43]

The best plan is to eliminate all economic plans and planning.

^This