I really think Paul should go into detail just how to get to 0% income tax, and explain how much that would help the economy. Not even some of the people on this board understand a lot of it.
To my knowledge, he wants a flat tax of 15% until we can balance the budget and phase out the IRS. Then he was to cut inflation tax and the federal income tax completely.
He really needs to stress how with this in place GM would have never been in a situation to need a bailout. Lets say we cut income tax to zero right before we bailed out GM. GM could have instantly cut 5% salary across the board, while the employees would have seen about a 15% increase in their gross income, despite having a 5% net decrease. They could have even gone further and cut 10% of the salary budget, and the employees still would have seen a 10% gross income increase. Now imagine all major businesses doing this at the same time. What we would have is about a 10%-15% salary increase across the United States, while giving businesses the ability to even hire more employees at a better overall pay rate. Now add all that extra income the population is making, and we could have actually afforded to buy cars from GM and we wouldn't have had to bail them out in the first place.
Maybe there is more to it than this. I know he wants to keep corporation taxes, but doing this gives corporations the ability to pay lower wages while still giving employees an income boost. And as one of the pictures from earlier said, the United States would become the biggest job importer in the world.
If he makes this argument, but acknowledges that it could only be done if we cut our military spending and foreign aid but NOT our National defense, Medicare, and SS. How can people not respond positively?
To my knowledge, he wants a flat tax of 15% until we can balance the budget and phase out the IRS. Then he was to cut inflation tax and the federal income tax completely.
He really needs to stress how with this in place GM would have never been in a situation to need a bailout. Lets say we cut income tax to zero right before we bailed out GM. GM could have instantly cut 5% salary across the board, while the employees would have seen about a 15% increase in their gross income, despite having a 5% net decrease. They could have even gone further and cut 10% of the salary budget, and the employees still would have seen a 10% gross income increase. Now imagine all major businesses doing this at the same time. What we would have is about a 10%-15% salary increase across the United States, while giving businesses the ability to even hire more employees at a better overall pay rate. Now add all that extra income the population is making, and we could have actually afforded to buy cars from GM and we wouldn't have had to bail them out in the first place.
Maybe there is more to it than this. I know he wants to keep corporation taxes, but doing this gives corporations the ability to pay lower wages while still giving employees an income boost. And as one of the pictures from earlier said, the United States would become the biggest job importer in the world.
If he makes this argument, but acknowledges that it could only be done if we cut our military spending and foreign aid but NOT our National defense, Medicare, and SS. How can people not respond positively?
