As we sail through the Great Obama Depression, the Democrats are doing nothing except trying to brand the Republicans, the Tea Party and conservatism in general as the “Party of No.”
We are in fact the “Party of yes.”
Why are we the “Party of yes?”
We have the answer to the Great Obama Depression. We know how to say yes to the ideas that will solve the problem.
Obama does not want us to say yes, because he does not want to see a recovery. His vision of America is not of a rich and prosperous America. In fact, his vision of America is just the opposite. His vision of America is of a poor, almost impoverished nation that is not an economic superpower.
We conservatives want to say yes to the greatness of America.
How do we get America back on the path of economic greatness?
It actually would take two steps to get it started.
The first step is major tax cuts across the board. Abolish the capital gains tax. Liberals shriek when you say that. “How will you pay for the tax cuts?” They wail.
The answer is, tax cuts are not something that is paid for. The money belongs to the people. A new building is something that is paid for.
However, the reality of life is that every time taxes are cut, tax revenues go up. Why? Because tax cuts stimulates economic activity. Tax cuts work and they work every time. Kennedy cut taxes. The economy boomed. Reagan cut taxes and the economy boomed. Bush cut taxes and does anyone remember six years ago when unemployment was 4.6%? Does anyone remember the Republicans’ last budget? The deficits had been steadily shrinking and the deficit for 2007, their last budget year was only $161 billion.
Why eliminate the capital gains tax? Again that is another one that is fun to throw out just because it will make liberal’s heads explode. Cutting the capital gains tax encourages investment. Investment creates new jobs. This is a concept so simple, even a liberal should be able to figure it out. The fact that liberals cannot figure this one simple point of economics out should be enough proof to disqualify them from any decision more significant than deciding what is going to be on the TV tonight.
The second step is equally simple. Cut spending.
Cutting spending is easier said than done. It is even tough with allegedly conservative Republicans stepping up to protect their turf and their favorite projects.
For the last few weeks, I have repeatedly blogged about an idea from Louisiana Congressman John Fleming. It is his Federal Realignment and Closure Commission. Spending can be cut by eliminating wasteful programs. We can break the mechanism career politicians use to protect their programs with the FRCC.
This worked with the military. For years, the Pentagon could not close bases they did not even need or want because Congressmen protected bases in their district. The Base Realignment and Closure Commission prevented Congressmen, even those with massive seniority and those who were powerful committee chairs from stopping closures. The same thing can and should be done with the Federal Government.
Last year, the GOA identified hundreds of billions of dollars in fraud, waste and duplicated services. These programs need to be cut.
Economists tell us that once debt hits about 80% of a nation’s GDP, it becomes a drag on the economy. We are already over 100%. We are following the route of most of the European nations. Their plight should be a warning to us that this is not the way to go.
If six friends of yours jump from a twenty-foot wall and break their legs, what makes you think you will have any different result? This is what the Obama Regime either does not get or the willfully want America to fail.
If we cut taxes to stimulate our economy, thus growing revenue and cutting our spending, we can start to get our debt under control and pull out of the economic death spiral Barack Obama and the Party of Treason want to put us in.
John John John. We've been down your path before and look where we are right now. It seems we just keep doing the same thing over and over and never look to the real source of the problem. Look for it John and you will see. Ignore it and you're destined to flounder in the politics of social slavery.
In 1913 taxes ranged from 1% on income of $0-$20,000 to 7 percent on income of $500,000 and higher. The War Revenue Act of 1917 increased rates. Tax brackets ranged from 2 percent on income of $0-$2,000 to 67 percent on income of $2 million and higher. During the Roaring 20's tax rates are cut because the economy is doing well. The highest marginal rate decreases to 25 percent. In the 1930's, big increases because of the Great Depression, Lowest rate is 4 percent. Highest rate is 79 percent. Income of $90,000-$100,000 is taxed at 59 percent. In 1933, there are 55 tax brackets, mostly in 1 percent increments. During WW II tax increases are required to fund the war. The lowest rate in 1944 is 23 percent, for income of $2,000 or less. The highest rate is 94 percent for income of $200,000 or more.
Despite these wild fluctuations in tax levels over decades the total tax receipts and income tax receipts as a percentage of GDP never deviated much from my previous stated ranges. What I'm saying is that regardless of the tax rate we still collect the same percentage of revenue. Lowering or hiring rates is just mental masturbation to make us feel good or bad about taxes. When you have 70,000 pages of code to create loopholes you will never keep up with the inherent corruption it creates. Increasing the base with simpler tax laws, regulatory reforms, fair trade agreements, union cooperation with industries and education are what we truly need.
We have tried just about every possible tax bracket scheme imaginable and yet we still have massive debt and unfunded liabilities. Spending is the problem. Spending and the fact that when economies are improving as they did after Reagan, Clinton and even the last 4 years of G. W. Bush we NEVER reign in spending to pay our debt off. When we're in a recession or other fiscal crisis our Keynesian nonsense requires us to spend money we don't have. When the economy is thriving and growing we spend money we DO have and never address the debt.
If we have tried almost infinite tax rates and they haven't made a difference, why do you want to maintain a 70,000 page tax code behemoth that is designed to be manipulated for evasion, avoidance and other corruption? Why not tax consumption rather than productivity? Why not make it as simple as possible. No forms, no manipulations, everyone pays the same amount. If you're rich you pay your consumption tax on your $1,600 shoes from Macy's. If you're poor you pay your consumption tax on your $39.99 New Balance shoes at Target.
Take the checkbook out of the politician’s hands, changing a tax code once a day, every day, will never fix our problems.
USARogue wrote: "What I'm saying is that regardless of the tax rate we still collect the same percentage of revenue. Lowering or hiring rates is just mental masturbation to make us feel good or bad about taxes."
You have missed the most important point about rates.
Your own sentence states the salient fact about rates in a way which makes it hard to understand the importance of rates.
Let me restate the case for you. Follow this:
1. If we lower the tax rate, we still get the same percentage tax return against the GDP.
2. So, by asking for taxpayers to pay a lower rate, we still get the same tax percentage against GDP.
3. But, when we lowered the rate, the GDP went up, because the government burden on businesses (equivalent to "overhead") went down.
4. And, the tax revenue went up, too, even though we lowered the tax rate. We know that to be true, because USARogue asserts that he has figures which prove that the ratio of tax to GDP stayed the same. [And, his figures are correct, because Reagan and GWB and Gingrich all proved that that's the way it works in real life.]
The important effect to notice here is this:
IMPORTANT: Lowering tax rate is a boost to the economy -- it lowers the government "overhead" cost to business, and creates a climate to enhance business and lower unemployment.
Obama can keep us in "Unemployment Slavery" forever, until we can muster enough power to force lower tax rates to save the economy. If it takes a 2/3 majority in both Houses to accomplish this, so be it.
Or, perhaps, the people will rise up and demand that he stop screwing us.
More Fair Tax Pie In The Sky.
First, only people pay taxes. Corporations pass along all taxes as part of the cost of their goods or services. Therefore, only people pay taxes AND imposition of corporate taxes on American corporations ONLY makes them less competitive globally.
I am open to hearing and discussing what federal taxes existed prior to the 16th amendment, and open to discussing ways to fund constitutional federal government.
Until major tax reform may be passed I favor a flat income tax of 10% OR Less ... for EVERYONE with income.
States may choose whether or not to include a Sales Tax in their tax packages but I will NEVER favor nor support a national or federal Sales Tax.
I also call for a permanent end to the "death or estate" Tax. No government at any level has valid power to seize an individuals wealth solely based upon their death.
Folks, we need to once again make the united States the favored nation in which to conduct and operate businesses [large or small]. We need to provide incentives for folks to save and invest capital. We need to foster the obtaining, accumulation, and bequeathing of wealth in the hands of our citizens ... not the government.
We need a system of federal taxation that allows for constitutional government and retirement of the national debt ... nothing more.
We The People need to STOP sending men and women to congress to do anything other than Obey, Honor, and Defend our constitution against all enemies foreign and DOMESTIC! Do THAT and no BRAC type Commissions are needed. That said, if such a gimmick will work, so be it.
Flat tax won't solve the problem Chas. The first income tax in 1913 was a flat tax. Look where we are today. www.FairTax.org will correct the problem that we have now.
actually the first income tax wasn't flat and was also part of a progressive total tax code. Also, the government exploded in size and cost since 1913 ... with most of that increase in size and cost done ... unconstitutionally.
Spending ... especially unconstitutional spending by unconstitutional agencies and departments ... IS THE PROBLEM!
Marcia, I don't know about your representative in Congress but ours is Congresswoman Renee Ellmers and she is fighting her heart out for all of us however, the stumbling block seems to be the Democrats who insist they need to demand higher taxes........I am not making excuses however, when you have a majority who are hell bent for election on standing their ground and won't allow the other side, no matter how efficient their budget proposals are, to pass.....then what is your answer to this bullying by the Democrats.....Six months is coming up on us fast and to think we are still trying to find a way to get our problems solved and bills passed before then.......Is there no one in Washington who is up to speed as to what is going on and could take this bunch to task before election day in November?.....Heads should roll.....You know they would if it were a Republican in office who pulled the same stunts this administration has done......There are no moral codes, no virtues and anything goes......What are we teaching our children let alone young adults who are striving to work in the offices of some Senator, Representative and hope to hold an office someday, in this great land we call America?......
Your telling the wrong people. I doubt you will get one post in opposition to your words. We can do it. Now we just need a way to force them to do it. Because they will not do it on their own.
BRAVO!!! This is great stuff. I am posting articles like this on my FB wall and my FB page "Stop Big Government Now". I am trying to get the word out to as many people that I can that will listen. It is a difficult and frustrating thing to get most people to understand what a mess we are in and the relatively simple solution. The solution is simple, but not easy- GET RID OF OBAMA!!! Anyone else with me on this? Any suggestions, fellow Conservatives? Thanks for your help!