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.
Seems one of the MANY problems with the so-called "fair tax" is its inability to be easily comprehended.
A Flat tax of 10% or less is universally understood. It requires no IRS, or surely not one of any great size. And the flat tax does not need prebates nor any social security number. If we retain a federal income tax adults would obtain a federal income tax ID number upon taking their first job or receiving their first paycheck. However, many may favor, as I do, foregoing withholding and simply sending in the percentage when due.
So, with the fair tax the irs is going to be shut down huh? Fine & dandy. Who's going to issue all those ;prebate checks?
No, Bob, the "fair tax" plan of that link is a horrible idea.
That's a rather broad statement to offer without further commentary.
I have commented several times in this Blog article and in others of the same or similar topics. There are simply far better alternatives, not the least of which is a flat tax option. I cannot duplicate ALL my posts on the fair tax plans shortcomings each time someone advocates it.
We need an incredibly simple, flat tax. Not the overly complicated "fair tax" which not only raises taxes on many of us, it vastly over funds the federal government and gives it a national sales tax ... an idea I oppose with every fiber of my being.
Sunset EVERY department - make them PROVE what they do...and that it is constitutional. Every vacancy - LEAVE it open. They know where the fraud is - Illegals getting IRS refunds; illegals getting health care (for non emergencies); medicare/medicaid. Make it so if an agency like GSA spends $800,000 they are CRIMINALLY PROSECUTED.
Every Department, Agency, Office, Service, Program and every piece of legislation should have a "Sunset Clause" added to it to be reviewed in 5-10 years to evaluate efficiency, and sustainability. And the regulatory entity MUST be an independent Private Sector institution.
What Liberals/Progressives refuse to accept is that regardless of the upper tax bracket in our criminal progressive tax system, revenue as a percentage of GDP for total taxes has stayed between 15%-20%. As a percentage of GDP for income taxes the revenue generated is approximately 8.6%. If you look at recent total tax receipts in 2004 when the full effect of the Bush tax cuts the government collected 16.1% of federal income taxes as a perecnt of GDP. By 2007 receipts had risen to 18.5% and would have continued had it not been for the recession. Unfortunately G.W.B. was spending much more than he was bringing in again.
This means that regardless of the upper tax bracket revenues collected stay relatively stable. The reason for this is that as tax rates go up, people find ways to shelter their money. This happened in the 50' and 60's when upper tax rates were over 72%. We have over 70,000 pages of tax code. We have over 1,100 tax forms. It is estimated that taxpayers pay $431.1 Billion annually, or 30% of total income taxes collected, just to comply and administer the tax code. A reduction in tax code complexity would help reduce the National Debt by $1.4 trillion over a decade. When tax rates are lowered this broadens the base and motivates investment.
There have been about 4,428 tax code changes in the last 10 years. Between 1986 and 2005 Congress passed over 14,400 amendments to the tax code, this equates to almost 3 changes every day for 19 straight years. There were approximately 580 changes in 2010 alone. Oh, by the way, in each of the last 2 years the IRS received 110 million calls from taxpayers and they were unable to answer 25% of the questions.
No government Agency, Departments or Service should elicit the fear the IRS does on American citizens. As Andrew Mellon explains, taxation should never be a system of rewards and punishments. Its purpose should be to simply fund the needs of our government mandated by the Constitution. Government has not, and will not, control its size. Only we, the citizen, can do this by demanding a simple FAIR tax system and Draconian cuts in the size and scope of our government. There are only 7 countries with GDP's greater than what we collect in tax revenue. $2.2 TRILLION Dollars of our tax dollars should be more than enough to effectively and efficiently run our government. This must be our goal.
Taxed Enough Already!
Exactly my point. www.FairTax.org A booming economy, everyone pays tax even illegal aliens, foreign tourist, prostitutes, criminal element, black market, the mob, everyone. The current tax code would disappear and would no longer make criminals out of everyone who tries to pay their taxes. April 15th would be just another spring day. No more special interests, no more tax loop holes. You would have to hide to avoid a good job. The United States of America would become a tax free zone for every business in the world.
USARogue wrote: ".......regardless of the upper tax bracket revenues collected stay relatively stable. The reason for this is that as tax rates go up, people find ways to shelter their money."
That statement sounds perfectly logical, until you say it over and over several times. "As tax rates go up, people find ways to to shelter their money."
So, you think that:
1. People didn't look for shelters, and use them, when rates were lower?
2. If we lower the rates, people will stop trying so hard to shelter their money?
The reason that revenues go up when the rates are lowered is much simpler than you think.
When rates are lowered:
1. Less capital money is being shuttled into the public sector which is an overhead cost on the economy.
2. People have more money to invest in the private sector.
3. People tend to have more faith that government will not waste money, so they are more likely to invest in the future, and improve the economy, which increases tax revenues and thus lowers the deficit.
You're arguing the wrong point. It's not tax shelters, it's not tax cheaters, it's not tax avoidance. It's about an oppressive tax system that's destroying our country. Get rid of the tax system we have and adopt the FairTax www.FairTax.org.
Obviously, you didn't read my post very carefully.
All we have to do is lower the rates, and spend less, and our problems are solved.
The average person will never support a Federal Sales Tax of 28%.