The dismal news of 0.2% GDP growth for the first quarter only confirmed that the U.S. is in the midst of its slowest recovery in half a century from an economic crisis. Our view is that the primary factors behind the growth slowdown are an increasingly intrusive regulatory environment, a confusing and punitive tax scheme, and lack of certainty over healthcare costs. Here are some recommended solutions.
- Streamline the federal bureaucracy.
- The President, with some flexibility, should require each agency to reduce the number of regulations under its purview by 20%, at the rate of 5% a year.
- Then Congress should pass a sunset law for the remaining regulations, requiring them to be reviewed at some point in order to be maintained.
- Simplify and flatten the income tax.
- Make the individual income rate 20% (at most) for all income over $50,000, with no deductions for anything.
- Reduce the corporate tax to 15%, again eliminating all deductions other than what is allowed by standard accounting practice. No perks, no special benefits.
- Further, tax foreign corporate income at 5%–10%, and let companies bring it back home to invest here.
- Replace the payroll tax with a business transfer tax of 15%.
- Companies would pay tax on their gross receipts, minus allowable expenses in the conduct of producing goods and services.
- The tax would be rebated at the border, so it would encourage domestic production and be popular with union workers since it would make US products more competitive internationally.
- Provide certainty by keeping tax rates low through a tax-limitation constitutional amendment that would require that:
- Future tax increases to be passed by 60% of the Congress, in combination with a balanced-budget amendment and
- phasing them in over four to five years
- Roll back the regulatory state.
- Start with the Food and Drug Administration by streamlining the process so healthcare can keep up with research, thereby lowering healthcare costs and providing healthier outcomes for everyone.
- Then start with the next regulatory agency until all have been updated.
- Drill for America’s domestic energy and use the royalties on federal lands to retire the debt and/or fund needed infrastructure repair instead of raising taxes.
The above proposed plan (for detailed explanations of each please go HERE and read the original article – it is well worth the time of every American!) presents just a few ideas but each would put U.S. competitiveness first and bring middle-class jobs back to America.
We are eager to see which 2016 presidential campaign candidates – in either party – embrace this prosperity agenda.
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