It’s time to put America back to work! Chances are that President Obama will give his “New” plan after his vacation. Most likely, he’ll announce a new stimulus plan with “shovel-ready” infrastructure improvements, a call for more taxes on the “wealthy,” and a move to extend unemployment benefits forever! Such actions will just put America deeper into debt and generate a marginal return on investment. Even the Congressional Budget Office's own analysis indicated that Obama's first stimulus plan cost the American taxpayer between $225,000 and $631,000 for every job that it 'saved' or created. Americans want answers that work; not more debt. Here are common sense changes that can make a difference now.
Demand they replace baseline budgeting with zero-based budgeting. Who wouldn’t want a budget that is set to go up 8% every year? It’s time to end the gravy train funded by your taxes. Even better, adopt the One Cent Solution (www.onecentsolution.org) that decreases the budget one percent for the next six years. Any increase in one area must be offset with decreases in another to meet the 1% target. It’s time to make cuts real, instead of telling us that a decrease in the growth of spending is a cut.
Initiate a flat income tax rate. Obama has been trying to spread the wealth, and there’s now less wealth to spread. It’s time we spread the cost of government to all voting citizens. Now, 50% of voters get to spend their neighbors’ money on government handouts. Enough of the lies that the “rich” don’t pay their fair share! Make it the same share and cut all deductions. People will complain—but they will soon start screaming to stop unnecessary spending.
Eliminate unnecessary and costly regulations. Start by rescinding the Affordable Care Act, Sarbanes-Oxley, and the Dodd-Frank Act. All are creating more uncertainty and higher costs for small banks and businesses. In short, free up our free-enterprise economy—the engine of our economy and source of most job growth. In Hong Kong, you can do the paperwork to start your own company in a day. We should match that instead of drowning new and established entrepreneurs in a costly and growing bureaucracy.
Lower the corporate taxes. At 35%, America has the highest corporate taxes in the world. Who pays? Customers do. Cut it in half or more. Now, we’re punishing the very economic growth we ought to be rewarding. Companies sit on cash when the risk of return is too high. Let them earn a return that encourages them to take a risk on turning our economy around.