From John Stossel's great new show...
Tuesday, February 16, 2010
Sunday, February 14, 2010
My Draft Plan to Save the Country
B Hussein keeps saying he is willing to listen to all ideas to balance the budget and get the US Financial House back in order. So I have thrown a few ideas that I believe we will move us back to what we need to be to ensure the economic freedom that is the backbone of our prosperity.
1. Eliminate the following Departments Completely:
a. Education-Not needed. Leave education funding and standards up to the states. Do it now.
b. Agriculture- The Forest Service moves into Dept of Interior. Eliminate the rest immediately. If States want to fund Ag subsidies, then let them.
c. Energy-Not needed. Eliminate it. Nuclear power can be regulated by Commerce Dept.
d. HHS-Move FDA and NIH into Commerce Dept. Eliminate the rest completely. I believe the Indians have been given enough and can sustain themselves.
e. Homeland Security-This should be in the Justice Dept or Defense Dept. and drastically scaled back.
f. HUD-Close it over 3 years to ween people off the dependency of government aid. Sell HUD assets to private individuals. Sell off Fannie, Freddie and the clan. Stay out of the mortgage market forever.
g. Labor-This should be managed by the States. Parts that deal with Veterans move into the Defense Department.
h. Veterans Affairs-Again, move this into Defense Dept.
2. Change the remaining departments as such:
a. Commerce-Manages inter-State commerce and inspection of foreign goods (safety) only. There will be no tariffs or duties as we will be a market where lower priced international goods will make products cheaper for US consumers and businesses. US Businesses will have to compete head-to-head with the world's best. This will make us stronger, not weaker. It will also eliminate the special interest and political pandering that goes on in Congress today. After all, if there is no money at stake lobbyist will disappear. In addition, get 20% smaller in 90 days. Give terminated workers one year of pay and benefits.
b. Defense-Come on, do you really need more money than the rest of the world spends on weaponry combined? There has to be some where to save. I will give you some time (2 years) before I get involved.
c. State-You get a reprieve, for now.
d. Treasury-get 20% smaller in 90 days. Give terminated workers one year of pay and benefits.
e. Interior. Same 20% rule from above applies. Start selling government owned land that is not part of the National Park System. Consider leasing a few national parks to private business to operate. Plan on making it system-wide in 10 years.
f. Justice. Reprieve, for now.
g. Transportation. Fix the FAA. Eliminate 10% of your positions within the year. All terminated employees get 1 year salary and benefits. Another 10% next year.
3. Taxes.
a. Eliminate the Corporate Income Tax. This will make US businesses the most competitive in the world. It will reduce the return threshold for projects by nearly 40% meaning more growth and capital expenditures. All corporations that are profitable must pay out 30% of profits as dividends to shareholders that will then be taxed as income to those that receive dividends.
b. Total tax receipts cannot exceed 20% of GDP. If they do, everyone gets a proportional refund based on taxes paid. This number drops .25% for the next decade.
c. Eliminate the estate tax. This is really just a way for Life Insurance Companies to sell more policies and produces very little in the way of revenue.
d. Top marginal tax rate is 25%. Why should anyone give the government more than a quarter of your income?
e. Institute at 1.5% Federal sales tax on all non-food goods and retail services. Everyone needs to pay something to the Federal Government to live here, even those that are illegal or bypass the 1040 form (although this will now be the size of a postcard).
f. Income deductions-Most are gone, including charity and mortgage. The self-employed and non-covered can deduct health care coverage. Retirement and Education savings are also deducted as with 401(k)-type mechanisms today.
4. Entitlements.
a. Social Security-FICA maximum tax frozen for 5 years. SS payments frozen for 5 years. After that, FICA is a function of taxes collected in the prior year. Sorry folks it is a Ponzi scheme and your Congressmen lied to you. It's this or nothing.
b. Medicare-Medicare has to get back to providing basic medical care only. No more motorized wheel chairs for everyone that turns 65 and new bionic knees. If you want that coverage, seek alternative coverage or pay for it yourself. Co-pays have to be levied that encourage prudent use of health care resources. Ideally, everyone would have an HSA they have been saving into for 20-30 years to would cover most of these co-pays. Free care encourages over-consumption and has to be controlled.
5. Policy Changes
a. If is not in the Constitution, it is the individual States' responsibility. We want the States to compete. If their balances of taxes and benefits are wrong, people and business will move. It is a great market system at work.
b. Term limits. Senator get 2 terms (or whatever your state decides, see below) and Representatives get 6. No more that 12 years in office. If you can't get it done in 12 years, you failed.
c. Add more Representatives. Makes it harder for special interest to buy votes. The number could be twice what it is today. Need to think about this more.
d. Repeal 17th Amendment. State Legislatures must elect Senators. This government puts more power into the hands of State Government and they must have a voice at the Federal level.
e. No foreign aid until the US financial house is in order. If you are broke, you shouldn't be letting others use your Visa.
f. Immigration. We have laws. Follow them. If you cannot follow the process then please stay home or risk being shot at the border. Given that, we need to encourage legal immigration, especially for those that are talented (aka college graduates). An aging country is not a good thing. Japan and Russia are in trouble for this very reason. You can speak your language at home, but everything else will be in English at the Federal level.
g. No more United Nations or NATO. We know who our friends are.
h. Banks lend money and pay savers. That's it if you want deposit insurance backed up by the Feds.
i. No more FEMA. If you live in a dangerous area, be prepared. No more Federal Flood Insurance. If you live in a dangerous area, be prepared or get out. That includes those nice beach front homes.
j. Earmarks have to be posted on Congressional web pages and why the funding was provided. President gets a line-item budget veto on all matters of spending.
I am not advocating a Federal balanced budget. However, I am advocating deficits that grow less than the overall economy. A surplus would be good now and then to insure we can weather any downturns (they will happen). States have to take back the power. People have to regain Independence from the Nanny State. The courts have to preserve rule of law and property rights. A smaller Federal government has to be the end in mind with more powerful State governments. With this, maybe we can get back to what the Founders envisioned.
1. Eliminate the following Departments Completely:
a. Education-Not needed. Leave education funding and standards up to the states. Do it now.
b. Agriculture- The Forest Service moves into Dept of Interior. Eliminate the rest immediately. If States want to fund Ag subsidies, then let them.
c. Energy-Not needed. Eliminate it. Nuclear power can be regulated by Commerce Dept.
d. HHS-Move FDA and NIH into Commerce Dept. Eliminate the rest completely. I believe the Indians have been given enough and can sustain themselves.
e. Homeland Security-This should be in the Justice Dept or Defense Dept. and drastically scaled back.
f. HUD-Close it over 3 years to ween people off the dependency of government aid. Sell HUD assets to private individuals. Sell off Fannie, Freddie and the clan. Stay out of the mortgage market forever.
g. Labor-This should be managed by the States. Parts that deal with Veterans move into the Defense Department.
h. Veterans Affairs-Again, move this into Defense Dept.
2. Change the remaining departments as such:
a. Commerce-Manages inter-State commerce and inspection of foreign goods (safety) only. There will be no tariffs or duties as we will be a market where lower priced international goods will make products cheaper for US consumers and businesses. US Businesses will have to compete head-to-head with the world's best. This will make us stronger, not weaker. It will also eliminate the special interest and political pandering that goes on in Congress today. After all, if there is no money at stake lobbyist will disappear. In addition, get 20% smaller in 90 days. Give terminated workers one year of pay and benefits.
b. Defense-Come on, do you really need more money than the rest of the world spends on weaponry combined? There has to be some where to save. I will give you some time (2 years) before I get involved.
c. State-You get a reprieve, for now.
d. Treasury-get 20% smaller in 90 days. Give terminated workers one year of pay and benefits.
e. Interior. Same 20% rule from above applies. Start selling government owned land that is not part of the National Park System. Consider leasing a few national parks to private business to operate. Plan on making it system-wide in 10 years.
f. Justice. Reprieve, for now.
g. Transportation. Fix the FAA. Eliminate 10% of your positions within the year. All terminated employees get 1 year salary and benefits. Another 10% next year.
3. Taxes.
a. Eliminate the Corporate Income Tax. This will make US businesses the most competitive in the world. It will reduce the return threshold for projects by nearly 40% meaning more growth and capital expenditures. All corporations that are profitable must pay out 30% of profits as dividends to shareholders that will then be taxed as income to those that receive dividends.
b. Total tax receipts cannot exceed 20% of GDP. If they do, everyone gets a proportional refund based on taxes paid. This number drops .25% for the next decade.
c. Eliminate the estate tax. This is really just a way for Life Insurance Companies to sell more policies and produces very little in the way of revenue.
d. Top marginal tax rate is 25%. Why should anyone give the government more than a quarter of your income?
e. Institute at 1.5% Federal sales tax on all non-food goods and retail services. Everyone needs to pay something to the Federal Government to live here, even those that are illegal or bypass the 1040 form (although this will now be the size of a postcard).
f. Income deductions-Most are gone, including charity and mortgage. The self-employed and non-covered can deduct health care coverage. Retirement and Education savings are also deducted as with 401(k)-type mechanisms today.
4. Entitlements.
a. Social Security-FICA maximum tax frozen for 5 years. SS payments frozen for 5 years. After that, FICA is a function of taxes collected in the prior year. Sorry folks it is a Ponzi scheme and your Congressmen lied to you. It's this or nothing.
b. Medicare-Medicare has to get back to providing basic medical care only. No more motorized wheel chairs for everyone that turns 65 and new bionic knees. If you want that coverage, seek alternative coverage or pay for it yourself. Co-pays have to be levied that encourage prudent use of health care resources. Ideally, everyone would have an HSA they have been saving into for 20-30 years to would cover most of these co-pays. Free care encourages over-consumption and has to be controlled.
5. Policy Changes
a. If is not in the Constitution, it is the individual States' responsibility. We want the States to compete. If their balances of taxes and benefits are wrong, people and business will move. It is a great market system at work.
b. Term limits. Senator get 2 terms (or whatever your state decides, see below) and Representatives get 6. No more that 12 years in office. If you can't get it done in 12 years, you failed.
c. Add more Representatives. Makes it harder for special interest to buy votes. The number could be twice what it is today. Need to think about this more.
d. Repeal 17th Amendment. State Legislatures must elect Senators. This government puts more power into the hands of State Government and they must have a voice at the Federal level.
e. No foreign aid until the US financial house is in order. If you are broke, you shouldn't be letting others use your Visa.
f. Immigration. We have laws. Follow them. If you cannot follow the process then please stay home or risk being shot at the border. Given that, we need to encourage legal immigration, especially for those that are talented (aka college graduates). An aging country is not a good thing. Japan and Russia are in trouble for this very reason. You can speak your language at home, but everything else will be in English at the Federal level.
g. No more United Nations or NATO. We know who our friends are.
h. Banks lend money and pay savers. That's it if you want deposit insurance backed up by the Feds.
i. No more FEMA. If you live in a dangerous area, be prepared. No more Federal Flood Insurance. If you live in a dangerous area, be prepared or get out. That includes those nice beach front homes.
j. Earmarks have to be posted on Congressional web pages and why the funding was provided. President gets a line-item budget veto on all matters of spending.
I am not advocating a Federal balanced budget. However, I am advocating deficits that grow less than the overall economy. A surplus would be good now and then to insure we can weather any downturns (they will happen). States have to take back the power. People have to regain Independence from the Nanny State. The courts have to preserve rule of law and property rights. A smaller Federal government has to be the end in mind with more powerful State governments. With this, maybe we can get back to what the Founders envisioned.
Fabians....
This is one of the best articles I have read in some time. It is a time of hope and alarm. Let's hope the Fabians don't win.
We Picked the Wrong Roman Dictator
We Picked the Wrong Roman Dictator
Subscribe to:
Posts (Atom)
