Issue Position: Economy

Issue Position

Seven Steps to Economic Recovery

The Seven Step Plan:

Step 1: End the fraud
Step 2: Apportion taxes
Step 3: Healthcare reform
Step 4: Stop offshoring jobs
Step 5: Stop policing the world
Step 6: End unconstitutional subsidies
Step 7: Social Security and Medicare reform

Many traditionally looked to the government as if its job was to manage the economy. It wasn't. The Constitution is clear on that. Not only does it state that money is to be coined, the Tenth Amendment specifically restricts our government from assuming any power or role not delegated to it by the constitution that power being reserved to the states and the people. Aside from taking an unconstitutional role in the economy, we've continually seen a pattern where government takes more than it provides.

According to the US Bureau of Economic Analysis, approximately half of our economy is now state and local government. Government and the corporations that arise from the debt based money machine known as the Federal Reserve continually grow. Any job the government provides costs more than it would in the private sector, if only due to more administrative costs. We pay for those expenses through taxes and inflation.

First, we have to put an immediate stop to the accounting fraud that led to the financial crisis. If we're worried about jobs and the economy, we're worried about getting bad debt out of the system and off the governmet's books - something the current financial reform bill won't accomplish. Nothing else will matter unless we address this time bomb - and the next crisis will be worse than this one if we don't.

The second thing we have to do in order to ensure fiscal restraint and create an environment where capital can form (so people can work, start businesses, ect.) is apportion taxes among the states. Apportionment would do the following things -

1) remove at least $300 billion in compliance costs borne by the economy at large.
2) force Congress to completely estimate costs and budget items every two years instead of treating taxpayers as an unlimited ATM
3) remove the primary means for lobbyists to receive taxbreaks or destroy their competition
4) allow people to keep their earnings, and make sure the vast majority of Americans aren't giving Uncle Sam an interest free loan every year
5) enable price discovery in agriculture, education, healthcare and a variety of other areas, prices of these being out of control because the tax code subsidizes them
6) create an environment where business can return
7) allow each state to decide how the money will be collected

So without officially cutting anything, we've already reduced prices across the board and saved at least $500 billion - just by this organizational change alone. We're also doing away with a situation where money never leaves states and towns, so they're not forced to beg Washington for what it took in the first place. This change also addresses the very nature of our economy, where your proximity to the gravy train is far more critical to your success than the merit of your work.

Step three is my healthcare plan. Healthcare costs are crushing businesses exactly because of the reasons described in my plan. I address those reasons. This plan will also reduce, dramatically, the debt burden of Medicare.

Step four is removing ourselves from NAFTA, CAFTA, GATT and the World Trade Organization. There's no need for government to subsidize offshoring and penalize production here just because multinational companies write our trade policy. Perot was right about that sucking sound of lost jobs. Let's take his advice this time. A better alternative would be equal trade with everyone - no favorite nations or industries - may the best mousetrap win.

Step five is to stop policing the world - before we ruin the dollar and go broke doing it, in which case we can't purchase the hardware anyway. There's no reason that our current naval and airforce technologies can't deal with our national defense needs. There's also no reason that we should be the personal army for the Japanese and German people. That'll save at least a trillion per year. Let the troops spend their money at home. The second district is going to have a big role in that transition, one that benefits everyone.

Step six is to stop federal subsidies for agriculture and education. The fact is we're broke, and the only things we have to show for it are higher prices at the supermarket, colleges incapable of fiscal retraint and reduced quality in both. Both fared better under control of the states and the people. This will include rolling back unfunded educational mandates such as No Child Left Behind, which in turn will save towns and states money.

Step seven is to fund social security and medicare with a sales tax, not a payroll tax, which would be adjusted for annual payment obligations. There's no reason we shouldn't remove tax compliance costs to do the job more effectively. I'm currently putting together a proposal to address the long term situation, which will include the ability to opt out while making sure the problems each presents never happen again.

Doing all of these things will dramatically reduce the burden on everyone across the board. They sound radical, but the other alternative is allowing the economy to gradually shut down or suddenly blow up for good. If anything, the first step is mandatory.

So what's in it for you? -

1) Less inflation
2) Dramatically lower prices
3) No more federal tax forms, saving reciepts, ect.
4) Economic growth and rising wages
5) Lower taxes and deficits at the state and local level
6) The ability to retire (which doesn't exist on the current path at all in 20 years)

The republican and democratic parties are all about more theft, going along to get along. I am not. If this time isn't the one to end it, then when? If not us, then who?

I am for fair and free markets. I am for taxes having the sole function of funding government. The Democrats and Republicans are not. 90+ years of experience says they'll never be.

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