| Its broke,let's fix it. A proposal for the new American tax system. | by OWLFAN86 on Apr 14, 2009 at 9:34 am |  | |
With the dawn of yet another April 15th, and Tea party protest across this nation. I thought I would once again take the time to BLOG. And share with Tiger Dropping members my ideas on what we SHOULD be doing to both pay for what needs to be paid for, foster economic growth and protect the rights of citizens.
I think most would agree that our current system just does not work. Too many loop holes for big corporations, too much of the burden on the individual taxpayer and their families. It’s too complicated, too confusing, too fragile. When the Government needs the money the most, like now when the economy is struggling. There is less to collect due to slow economic times. And too few even have the slightest idea how this all really works. So we are left at the mercy of those invested in not letting us know too much.
Now I’m not an economist. I have worked in politics and Government for almost 20 years. During that time I have had countless conversations with experts on economic matters. I have heard countless hours of testimony, read piles of studies and documents exploring what could be and should be done to fix the tax system. None of that makes me an expert in any way. However I am a student of history and I can see when something is working and when something is broken. There are lessons to be learned and too few even seem aware of those lessons. History is not just the past, its going on right now. What kind of history will be written by succeeding generation about this time, about us what we do what we allow?
Folks, our tax system is a mess. Our Government as a whole is far too quick to spend your money.
They sit in D.C. or Austin or Baton Rouge and ignore the real struggles of real people. Sure they might give lip service, talk about a new bridge or new roads or the $400,000 they got for new energy efficient street lights and act as if they are serving you. But who asked for street lights? What people are asking for is responsible Government, to spend less, save more. This is not a Republican vs Democrat issue. The GOP is inclined to borrow and spend, the Dems. to Tax and spend. Right now in this NEW spirit of co-operation in DC they’ve decided to do both. My God the insanity of it all.
I do not argue that Government needs some way to fund national defense, infrastructure and I will even allow SOME social program are necessary. But we MUST put a limit on what government is responsible for. We MUST demand more accountability. That is what these Tea Parties across the nation are really about. America’s people are fed up and overburdened and if we do not act NOW,, not just soon nut NOW. We will find ourselves more and more are the mercy of a government that drift further and further away from reality daily.
OK, so now I’ll stop with the speech making and get on with my proposal. It's basically what most of the former Iron Curtain countries have gone to, after calling in teams of high-powered economists to design tax systems to foster growth. That’s when the history comes in. The former soviet block learned from their defeat. The West won the cold war not with bombs or bullets.But simply with a better economic model. Free enterprise, the free market, capitalism. Let the people grow the economy NOT the government. It works, history has proven that.
There are three components, each at the same flat rate. At pre-
"stimulus" spending levels, the rate required to balance the budget was 15%, so I've called it 15-15-15. The components are:
1. An across-the-board consumption tax, with few if any exclusions and a single rate. The trick is to include everything in the tax base so the rate stays as low as possible. This could work like Fair Tax or like a VAT or GST, whichever is easier to administer (and I actually think VAT/GST may be). It adds up to the same amount of money either way. The one thing that I would definitely bring over from Fair Tax is the Boortz-Linder prefund, which I would set at twice the rate of the taxes (so 30% if the tax rates are set at 15%, because of the other two legs of the tax structure).
2. A payroll tax that works like social security tax now, employer pays half and employee pays half, only with no upper limit cutoff.
3. A tax on business profits regardless of the form of business--corporation, partnership, LLC, sole proprietorship. Eliminate double taxation of dividends.
You could actually eliminate capital gains taxes, or index them to inflation, or allow rates to decline with longer holding periods (50% reduction after one-year holding period would knock LTCG rate down to 7.5%). I would set a target of making our cap gains rate competitive worldwide.
No personal income tax, no 1040, no April 15. You would still have the IRS (as you would under Fair Tax since somebody still needs to collect the money from taxpayers and audit compliance), but the IRS could focus enforcement at the business enterprise level and bother only a small minority of individual taxpayers.
Advantages I see:
1. I haven't seen any of the Eastern European models in detail, so I have not seen this specific tax structure modeled, but I would infer from models of other approaches that this structure would result in 1% to 2% higher annual economic growth than our current structure.
2. With this kind of tax structure in place, US would become a tax mecca for corporate headquarters. I could easily see a few hundred thousand, maybe a million, high-pay white-collar jobs moving here.
3. The consumption tax has a significant impact on protecting trade because you automatically add it on imports AND rebate it on exports. Note that unlike a tariff, it has a favorable impact on exports. That is one reason why every other member of OECD uses it. We are putting our balance of trade at a considerable disadvantage by not doing it.
4. At these rates, a lot of current loopholes and corporate welfare tax incentives are no longer economically necessary, so we can eliminate them.
5. As long as rates must be the same for all three, and as long as the budget must be balanced, every person would be reminded of the cost of government every time he or she gets a paycheck or goes to the store.
6. Although the pure Fair Tax is probably even better on these points, I think this is a much easier sell politically than the straight Fair Tax.
One other wrinkle I'm considering is based on what Sweden does. Collect an additional 5% on payrolls (half each from employer and employee, so employee takes home 90% of salary and employer cost is 110%). Invest this money in some combination of t-bills and relatively safe private equities as a privatized component of social security. Over time get social security under control by phasing in a lowering of upper limits on benefits and supplementing with the private investment accounts.
So there it is, we can call it the OwlieOption. Like I said I'm no expert, so some may find fault with parts here and there. I do believe it is a solid framework. Taking ideas that already work, ridding ourselves of ideas that have failed. While protecting the rights of the citizenry, it should provide our Government the funds needed to so what the need to do.
Of course for this to work we would need another "revolution" and that would be for the Federal Government to stop "spending to fix". Whether it be a social problem, or a economic one we cant fix the problem but committing more of the same acts that caused the problem. Government spends TOO MUCH. If that doenst stop, well, nothing can fix what continues to be broken.
Category: Politics
Is that a stimulus package or are you just happy to see me? | by OWLFAN86 on Jan 29, 2009 at 1:15 pm | | |
In the first big legislative moment of the Obama era the nearly 900 billion dollar stimulus bill passed without one Republican vote. Trust me the GOP is not innocent where stupid spending bills are involved. They helped passed the previous bailout package, remember that one? the one that has yet to do anything to revitalize the economy? So what do we need? Another larger one of course!!
But this is a new time, a wind of change has blown thru DC.
blah blah,, Obama walks on water,, etc and so forth.
We are told this latest stimulus package will result in more direct benefit to American citizens. With a typical Keynesian approach the Democrats tell us that by building up infrastructure will we receive a $1.50 benefit for every $1.00 spent in Government. Listen I'm no expert but since when did Govt make money? So color me skeptical as far as economic benefit reaching those who really need it.
In a report released Wednesday by the American Society of Civil Engineers. An overall grade of D was assigned to the nation’s infrastructure. The report claims that it will take a $2.2 billion investment from all levels of government over the next five years to bring it into a state of good repair. SO it seems obvious that there IS a need. And 2.2 billion seems like a drop in the 900 billion bucket. But the Dem's and the media have talked up this aspect of the stimulus package while downplaying the intended windfall for criminal enterprises like ACORN.
But what of this plan to re-build our nations roads and bridges? On the surface it seems like a very good idea. We do need to fix some troubling problems. And I'm sure some jobs would be created by mass building project. But what are the odds that Americans citizens will benefit? By my count those odds are roughly 10%. I have a good friend that is a project supervisor for the Texas Dept. of Transportation (TxDOT). He estimates that about 90% of the labor force on these construction projects are illegal aliens. Its not just the NEW New Deal, its the Nuevo Acuerdo.
We are no longer a nation of unskilled or semi-skilled laborers. Unlike in Roosevelt's time we are a service oriented economy. The reason the construction companies hire illegals is NOT that Americans don't want the work. Americans no longer know how to do the work.
Think about do you seriously want Chicken building the bridge you cross to and from work everyday? Sure the construction companies will make HUGE profits and roads will be improved. But I doubt that any jobs will be created by this investment.
But whats 2.2 when there's 897.8 left.
With a flourish of his pen President Obama expressed OFFICIALY his intention to shut down Guantanamo bay. As of yet we have no idea where the over the 200 Terror suspects will go or how we will proceed. Maybe the plan is to have ACORN hire them to register voters for 2010.
Mark my words
I can almost imagine this conversation taking place in Denver this August.
Nancy- so what do we have here in this Barry character Harry?
Harry- He prefers to be called Obama now.
Nancy- Barry,Obama, Schmobama, as long as he knows who the bosses really are. I mean seriously, he hasn't even sponsored one piece of significant legislation his entire time in office.
Barry- This is true.
Nancy- He needs us, more than we need him. We control the house and the Senate ,You just know we will be able to do anything we want.
Harry- So what are you saying?
Nancy- I'm saying we can finally do what we've always wanted to do Free Abortions, Gay marriage, hell free dead baby buffets at gay weddings.
Harry- That seems a bit harsh
Nancy-Its environmentally friendly, easy disposal of the the waste,, the greens will love it!!
Harry- Well its true, he hasn't accomplished much. And he will benefit from our combined experience...
Nancy- And while hes out front,taking all the hits...
Harry- we'll be able to pass all sort of legislation promoting our liberal agenda
Nancy- and take over the world!!!
Harry- You're right,praise Allah the world is ours.
Nancy- You mean Praise our earth mother
Harry- yeah,, whatever, pass me some more dead baby.
OK,OK maybe it wasn't quite like that.But I imagine that Ms.Pelosi and Mr. Reid will try to take advantage of Obamas popularity.Its the right political move.But I dont think congress will get the free pass form the media or the electorate that Obama will. The American public already doesn't think much of Washington. And Congress' poll numbers continue to stay low. Whether this will be enough to see a turnaround on Election day similar to 94 remains to be seen. Right now the GOP doesn't have a Newt out in front. We need a face,a rallying point.( MAYBE THE READER HAS SOME IDEAS, ON WHO THIS COULD BE. IF SO, SHARE THEM) At this point RUSH is the one directly taking on the President and Congress. But Rush is not going to run for office why take the pay cut? I find him very entertaining, thats what he is, an entertainer. We need a leader.
Hopefully as the public rejects the left we can move more to the proper right and truly become proponent of smaller govt. We need to be setting a defined agenda. Just saying no isn't enough, Like with the recent stimulus package debate the right must offer counter proposals, get the messages out, Publicly work with the President. He was to be seen a bi-partisan use that. Pass what we can tolerate, propose and market. The White House is the ultimate address but its the other end of Pennsylvania where the work is done.
Like in 92 when the Clinton's faltered there is an opportunity.But the target should be the congress. For the foreseeable future Obama is Teflon. I think Obama is smart enough not to make the same PR mistake that the Clintons did. But I predict Nancy is especially prone to misreading the public. She will make mistake, she will overreach. And when she does it need to be trumpeted. By and large,issue by issue the American public are for more conservative than the left would like us to believe. As Pelosi and Reid remind them of that we need to remind them them are options.
No one ever wins in politics, its all temporary.They just get to sit up front and on high. Eventually someone else takes that seat of honor. The RIGHT in the country can re assume that role. But it wont be easy. 2 years,4 years, 8 years? It's just a matter of time. The real concern is how big will the Federal Government be when that occurs.
OK,,
I'm looking for help here. I have a cat, well 3 actually. less that a year ago the neighborhood stray got knocked up and adopted my home as her own. That first batch was born and remained outside for about a month. Once she brought them to me I got them inside. I was able to find homes for 3 of them,one (Tard) remained.
Who do I call him Tard,well,, hes retarded I think. He eats things you wouldn't think are edible. Cotton Balls,foil,paper,even money. Nickles specifically.
He LOVES Q-tips he'll dig them out of the bathroom garbage, steal them off counter tops, even swipe one out of the GF's hand while putting on make-up.Then before you know it,he gulps it down. This Christmas while unwrapping I offered him a kitty treat. Tossed it down on the floor where it landed next to a packing peanut, he sniffed the treat then ate the peanut. So far he seems to be non the worse for wear. But sooner or later I'm worried I'm gonna have a $700 vet bill due to his dietary habit. If anyone has dealt with anything similar let me know.
with half my grammar check tied behind my back..
Owlie out!
Category: Politics
On Obama and W. | by OWLFAN86 on Jan 19, 2009 at 9:49 pm | | |
Today in Washington our nation will experience yet another inauguration. It will be a day of pomp and circumstances. There will be floats and parades,formal balls and flyovers. It is not just a celebration for Barrack Obama’s supporters.But a celebration of this nation’s ability to surprise even our harshest critics. We can disagree about a great many things, but we are united in a belief that this is the greatest nation on earth. That fact is a remarkable testament to the wisdom of our nation’s founders. The system that put in place has survived many wars including one that saw brother take arms against brother, economic upheavals, natural disasters and Roseanne Barr singing the national anthem. Our nation’s history has proven that although we cannot predict what trouble await us we have a political system in place that endures whatever they may be. We can and have on several occasions experienced what some have called “a peaceful coup”. So this is not the first time that this nations leader follows one is which their core political beliefs are often contrary to one another’s.
To be honest, there are some opinions that I share with our new President.Examples,if a young man or woman is willing to risk thier life in defense of our country and constitution. I do not care what their sexual proclivities may be.I agree with his intention to restrict any golden parachutes for executives of any corporation that may receive taxpayer monies. However I still remain at my core a Conservative. And I have concerns for the next 4 years.
I was present 8 years ago in Washington DC when George W. Bush took the oath of office. It was a heady time. I had also been present at George W’s first gubernatorial inauguration (even had my picture taken with a monkey. For me that was just one of the highlights). I had worked in the Texas State legislature for the full six years that he had served as Governor. On more than one occasion I had the chance to see the man in action on a personal level. He was then and still is a man I greatly admire. He treated everyone with dignity and respect. He never took himself too seriously but took his duties very seriously. He possessed a great sense of humor, something that even his harshest critics will attest to. He loved to talk baseball and did a hysterical impersonation of Dr Evil. I was not alone among those in D.C. that blistery winter day that KNEW George W. Bush. There are many others that knew him much better than I ever did or ever will. But on that weekend we were all simply fellow revelers, celebrators, friends of W. We felt with great confidence that we would see “OUR PRESIDENT” tackle issues such as energy independence, immigration, tax cuts, Social Security. Those issues which we felt had been far too long ignored would finally be addressed. And if not solved, at least a national dialogue would begin. And we KNEW our voice would be heard. That’s all any of us that make government/politics a career can hope for. To be heard.For the process to take place.
President Bush did address these issues. And some progress was made. President Bush had the courage to tackle the complicated issue of Social Security. I believed then and still believe despite the current stock market, that private savings accounts would have a long term positive effect on this nation’s economic security, and provide greater retirement income for our nations citizens. Bush did start a dialogue on immigration and I predict that eventually we will see an agreement reached which will closely mimic the plans he put forth. In his administration tax cuts we not only passed but they contributed to economic growth in the first 7 years of his administration,It was only after the democrats took power in congress did we see the current slide into uncertainty. And up until the very end George W. Bush spoke passionately about the need for us to make an effort to be energy independent. Of course even as these accomplishments mounted there was another issue that became the focus of his administration.
On September 11th, 2001 a terrible and brutal attack took place on our nation’s soil. We all , each and every one of us remember that day differently based upon our own experience and possible personal connection to New York the Pentagon or maybe someone on one of those doomed flights. And yet still it is with one heart that we responded. And I know from my personal knowledge of the man and his heart no one hurt more than our President. No other President before had to deal with an attack upon American citizens on such a grand scale on American soil. That day changed us, and it might have changed him. It certainly changed the focus of his time in office. You can disagree with elements of his approach. You cannot argue the fact that since that day we have not been attacked again. We have captured terrorist on our on soil plotting to attack us again. We have captured other terrorists on foreign soil and incarcerated them thwarting them and their evil intentions.
And Barrack Obama has his intentions, as is his right. And his administration has its blueprint. In his first 100 days our new president will be able to pass most if not all of his initial legislation. That is the tradition. After those first three months, things will gradually change. Hopefully Obama will not attempt a 180 when it comes to how this nations law enforcement agengies have dealt with the terrorist threat.
I say hopefully because I fear we will again face another attack. And like his predecessor President Obama will be forced to focus on the fact that there are those that only want to harm us. They might make a play at diplomacy. The will put on a front, to delay,distract and disrupt. I remind the reader that we were in constant diplomatic discussions with the Japanese right up until and including the day they attacked Peal Harbor. So while one might shake hands in false friendship, his other hand may hold a knife. One that might be used to stab us in the back.
Already we see some of those opposed to us setting the stage to continue their contentious relationship with the US. Hugo Chavez the Communist tyrant of Venezuela is making ridiculous statements alleging cohersion by the powers that be of the new President. And if Obama doesn’t go along. He will be killed. The point is Chavez has no intention of getting along. Neither does Bin Laden, Hamas, Iran, South Korea the list goes on and is well known. The fact is there are those that do not want peace they only want war. They might agree to sit down and discuss. They might play the game. But the game they play is the game of extortion. Give us this or that or we will walk away from the table and your efforts will be seen as a failure.
We cannot engage in dialogue while these criminals engage in diabolical intentions. We must continue to build upon the successful policies of the Bush administration, to hunt out expose and prosecute those that would do us harm by whatever means are necessary to secure our continued freedom. Because if we do not, anything we build can be destroyed.
The new President is fond of the word hope.
It is my hope as an American that President Obama will have the will power to respond in strength to any threat, to act decisively, to protect American and its interest against all enemies foreign and domestic.
As a way of closing my first contribution to the OWL-tasitc blog I dedicate the following Rudyard Kipling poem IF to George W Bush. It is I feel an apt description of the man and I feel a fitting tribute to his character.
IF
If you can keep your head when all about you
Are losing theirs and blaming it on you,
If you can trust yourself when all men doubt you
But make allowance for their doubting too,
If you can wait and not be tired by waiting,
Or being lied about, don't deal in lies,
Or being hated, don't give way to hating,
And yet don't look too good, nor talk too wise:
If you can dream--and not make dreams your master,
If you can think--and not make thoughts your aim;
If you can meet with Triumph and Disaster
And treat those two impostors just the same;
If you can bear to hear the truth you've spoken
Twisted by knaves to make a trap for fools,
Or watch the things you gave your life to, broken,
And stoop and build 'em up with worn-out tools:
If you can make one heap of all your winnings
And risk it all on one turn of pitch-and-toss,
And lose, and start again at your beginnings
And never breath a word about your loss;
If you can force your heart and nerve and sinew
To serve your turn long after they are gone,
And so hold on when there is nothing in you
Except the Will which says to them: "Hold on!"
If you can talk with crowds and keep your virtue,
Or walk with kings--nor lose the common touch,
If neither foes nor loving friends can hurt you;
If all men count with you, but none too much,
If you can fill the unforgiving minute
With sixty seconds' worth of distance run,
Yours is the Earth and everything that's in it,
And--which is more--you'll be a Man, my son!
--Rudyard Kipling
God bless you sir, and thank you.
Category: Politics
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