Everyone agrees that the economy needs to grow…but how? The President, much to his credit, has applied Keynesian economics to the Nth degree. Unfortunately, it is proven to be a flawed philosophy. Even with the government making up more than 40% of the economy, we cannot spend ourselves into prosperity. The only progressive solution to date…spend more. Eight hundred billion was not enough; we need to spend 400 billion more. Surely it will work this time.
Since the introduction of productivity taxation (the income tax) and the progressive movement nearly 100 years ago, government has expanded to consume nearly 40% of the GDP and 14 trillion of debt. The government is trying to insert itself into everything from who is your doctor and how much he earns to what your children should learn, to where you can work, if not directly, indirectly.
So what is the solution from the other side? Perry…let’s drill our way out! I am sure there is more to come. Romney…let’s reduce the rates; tweak here and tweak there and the system will work. If a liberal progressive does not work, try a conservative one? Not sure this is the right direction. Finally we come to Mr. Cain and 9-9-9. It is creative, bold and perhaps a necessary step on ridding the country of productivity taxation (income tax). Mr. Cain is a fan of consumption taxation (Fair Tax) but fears that the education process may take longer and perhaps he is right. The critics of 9-9-9 warn that Washington cannot be trusted and will elevate all three rates in a ravenous hunger to fund the government’s huge appetite for our money.
I, myself, prefer the three-prong approach put forth at ResolutePriciples.com. ResolutePrinciples.com believes that the government could be funded through a consumption tax (fair/sales tax) and repeal of the Income Tax, fee for service (enterprise entities) and finally an access fee (import tax). By rejecting productivity taxation as the primary funding source, we can make this nation one of the most favorable nations to build a business and employ workers.
We no longer live in a world where the United States controls 50% of the world’s GDP and most of its capability. In the past, high taxes and low global competition could not overwhelm productivity gains. The world has changed; the funding of our government has not.
Regardless of your opinion of the “Occupy Wall Street” movement, the weak economy certainly is at the genesis. People are hurting. The time for effective solutions is upon us. Be BOLD.
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