A group called "American Solutions for Winning the Future" has come up with 12 principles (solutions for jobs and prosperity) they want us to endorse, so I thought I'd examine these principles a bit more closely. For full disclosure, this is a group with which Newt Gingrich is closely affiliated. So, what are the 12 solutions?
1. Payroll Tax Stimulus. With a temporary new tax credit to offset 50% of the payroll tax, every small business would have more money, and all Americans would take home more of what they earn.
Now, I'm all for tax cuts, but I must say that a 50 percent tax credit seems extreme unless of course you are also planning to do away with welfare and other such spending, then I'd be on board with it.
2. Real Middle-Income Tax Relief. Reduce the marginal tax rate of 25% down to 15%, in effect establishing a flat-rate tax of 15% for close to 9 out of 10 American workers.
Okay, I like this one. It would probably lower my tax bracket, eh? However, anyone already making less than 50,000 dollars a year still would see nothing from this because they are already in the 15 percent tax bracket. Therefore, not likely that a Democrat controlled Congress will respond favorably to this.
3. Reduce the Business Tax Rate. Match Ireland’s rate of 12.5% to keep more jobs in America.
Well, I do think that lowering business taxes is a good way to keep businesses from fleeing overseas, but there are also a lot of other things we could do, say, reducing unnecessary regulation for instance. Nonetheless, not a bad idea and one that Democrats who cry foul when companies move their factories overseas could get on board with.
4. Homeowner’s Assistance. Provide tax credit incentives to responsible home buyers so they can keep their homes.
Anyone who knows me knows I'd support this one. After all, so far, the only people benefiting from government programs are those home buyer's who weren't responsible, weren't legal and don't deserve to be bailed out. The rest of us just suffer and this idea sounds like it has more promise to help the responsible ones than anything that's been done so far.
5. Control Spending So We Can Move to a Balanced Budget. This begins with eliminating Congressional earmarks and wasteful pork-barrel spending.
Okay, I have to say something here. First, the first four points were all about cutting taxes and now point 5 is about balancing the budget and cutting wasteful pork-barrel spending and earmarks. First, I've said before that earmarks are actually a part of a Congressman's job that I think they should be trying to do. I think they should be individual bills rather than tacked on to other things, but it is part of a Congressman's job to make things better for his or her own district. Second, even if you cut all the pork and earmarks, you still haven't cut the budget significantly (as you can see in other posts I've done) and so therefore, you are far away from a balanced budget. If a balanced budget is your goal, you need to consider slashing welfare, cutting the military and privatizing social security. That's the only way to achieve this goal.
6. No State Aid Without Protection From Fraud. Require state governments to adopt anti-fraud and anti-theft policies before giving them more money.
I'm a good federalist, so I tend not to like ideas that have the government holding out on giving states money unless they do what the federal government wants. It tends to rankle me a bit, so I'd have to say I don't care for this, not because removing fraud isn't a good idea, it is, but because the federal government comes off as big brother on this one. Do it my way or you can't have this cookie (image a child and his brother with the older, bigger brother holding the cookie above his head with one hand and pushing his younger sibling back with the other).
7. More American Energy Now. Explore for more American oil and gas and invest in affordable energy for the future, including clean coal, ethanol, nuclear power and renewable fuels.
This is great! Too bad we are about 5 years too late on this one. Of course, really we are about 25 years too late. This never seems to get across to anyone, especially the government.
8. Abolish Taxes on Capital Gains. Match China, Singapore and many other competitors. More investment in America means more jobs in America.
Ooh! Another tax cut, although one, as a stockholder and homeowner, that I like a lot.
9. Protect the Rights of American Workers. We must protect a worker’s right to decide by secret ballot whether to join a union, and the worker’s right to freely negotiate. Forced unionism will kill jobs in America at a time when we can’t afford to lose them.
Isn't this already the way it is? I know the current chumps in Congress are trying to do away with this, so I agree with the protect this sentiment and I agree that unions don't work as advertised and I certainly disagree with forced unionization. However, there have got to be other things we can cite as an effort to protect the rights of American workers.
10. Replace Sarbanes-Oxley. This failed law is crippling entrepreneurial startups. Replace it with affordable rules that help create jobs, not destroy them.
Admittedly, I don't know enough about this legislation to make a good comment.
11. Abolish the Death Tax. Americans should work for their families, not for Washington.
Okay, first, let's stop calling it a death tax. That is just a way to make it sound bad. I'm not a fan of double taxation which is what the estate tax is, however, I admit that it is a benign form of taxation. Most taxation hurts the economy or the poor or somebody, but estate taxes (based on the fact that only people who inherit more than 4 million dollars even had to pay it) are only double taxing the rich and ultra rich. Average Americans will never have to pay this, at least at the federal level, so this particular point is really nothing more than a smokescreen, is it?
12. Invest in Energy and Transportation Infrastructure. This includes a new, expanded electric power grid and a 21st century air traffic control system that will reduce delays in air travel and save passengers, employees and airlines billions of dollars per year.
Okay, still not really convinced this is constitutional, but that question sort of died about 60 years ago, so we'll just run with it. Both of these things need good, new investment, but outside of the federal highway system, what role does the government have here. I guess they can mandate the energy companies to update the grid, unless we want to nationalize that too, but how are we going to "invest" in these areas (which really do need a good amount of investing) and then, with all the tax cutting listed above without cutting any programs, how are we going to pay for it?
Basically, this sounds like a cut tax and spend plan, much like what we had under Bush. I'd prefer a cut tax and cut spending plan. Of course, raise taxes and spending is what we'll have for the next four years, so I guess I shouldn't be holding my breath for what I want.
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