 |
|
COMMENTS FROM READERS FOLLOW THIS EDITORIAL BELOW * * * * *
An Economic Challenge... An Economic Challenge To Not Just The Rockbridge Public, But To W&L, VMI, SUV and Econ Pros Across The CountryBy Jerry E. Clark
Like many of you, I am growing increasingly frustrated with the daily moves of those who claim to know what is best for us, which then turn out to be miserable experiments in basic economic guessing.
The problem with making this statement is that the people at the Federal Reserve and those who head the Bush administration and its Treasury Department are incredibly smart and supposedly well-qualified to do their jobs. Some of them have Ph.Ds in economics, some have had years of experience in various big corporation's finance departments, while others have decades of Wall Street finance experience.
But there's one thing that few, if any, of them seem to have - and that's common sense and a clear understanding of basic human motivation.
Let me be clear about this: I challenge them to stop making all the misguided, so-called "bailouts" and face up to reality - a basic reality that all of us in this great country understand deep down in our bones. That reality is that one will not be motivated to produce if the government continues to take our money via a variety of taxes, fees and disincentives to work.
Any way you want to look at it, the federal corporate income tax is a fraud and a mere "pass through" tax to the nation's consumers; any way you want to look at it, the federal capital gains tax is a pure ripoff, and even at 15% is just plain wrongheaded.
If you couple all of these disincentives, add in the huge surge in world competition and inundate the nation's key investors with news that higher taxes and business costs are coming - due to schemes for national health insurance and huge variety of left-wing initiatives now on the table which only will increase business costs, including pro-labor legislation, and you get a pot full of worry for those who produce the nation's jobs and income.
You don't have to like this, but it's true. You may disagree with capitalism's basic tenets, but you'd better be armed with an alternative that can provide wealth on a massive scale to equal it. I submit that there is no such alternative - and that other systems tried in the recent past all across the world is ample proof of this assertion.
Ok, so let's cut to the chase.
I challenge any of you in readership land, Ph.D in economics, corporate chief or average worker - ANYBODY you know, to prove to me that the following three steps wouldn't take us out of our current and increasingly worrisome malaise:
1) End the federal corporate income tax for a minimum of two years. Make the rate 0%. In fact, provide public money to corporations equal to 25% of their capital investments via a formal investment credit. Businesses will expand and hire more workers to more jobs done.
2) End the federal capital gains tax. Make the rate 0% on all gains of any kind. No more reporting, no more taxing of gains from real estate, stock sales and the like.
3) Institute a federal national sales tax of 5%. Enact this as a constitutional amendment so that the rate could not easily be change. Make this apply to all sales and all services of any type. Give individuals a 10 year mandatory jail term for violating this. Enforce MONTHLY payments to the US Treasury (just as monthly payments for Virginia Sales tax is required).
I know that many of my left-leaning friends will cry, "but this sales tax idea is 'regressive'." And I say to all of you that there should be some cost to EACH OF US for living in the U.S. We all breathe the air, we all use our highways, we all enjoy our national defense and we must fund a government to regulate our society. Rich people will then pay for every big shot purchase they make. If they want a BMW, they'll pay 5% more for it. Poor people will pay 5% more for their light bulbs, and 5% more when they go to the Goodwill. But we'll all contribute according to our consumption patterns. It's yet another strong incentive for all of us to make more money. There won't be any more "write-offs" for the so-called "rich" to shield their economic activity.
Ending the federal corporate income tax could end up lowering prices nationwide, but in truth, it would probably would not do that. Allowing people to make money via their deals by not ripping them off 15% via the capital gains tax would make many markets, including the stock market, go crazy with interest and appeal.
We need fresh thinking now. We do not need to continue to support silly and destructive redistributionist of income ideas when our economy appears to be going to hell in a handbasket.
Let's loan the automakers and other key industries money if we must - based upon their ability to repay the Treasury.
And let's do what we need to do: compete with the world in autos, all kinds of manufacturing, research and development and products of all kinds.
Tell your friends that a newspaper publisher "friend" of yours challenges them to prove him wrong - in public.
I'll publish all responsible responses right on this page. Beat me up, criticize my logic, call me a damn fool.
But remember this: show the public YOUR plan for turning around this nation and don't hide behind silly philosophies and general verbiage. I want specifics...just as I have set forth above. All you have to do is click the link that says "Submit Your Ideas On This Page" and then submit your plan! It's that simple.
(You know, dear readers, I composed the words above in the most serious of fashion. I really think our nation could be facing a bit of social upheaval if the job losses we're witnessing each day aren't stopped. This is serious business. Without a growing economy we all are in for huge trouble on a variety of fronts.
I have programmed a script for this page which allows comments to go live immediately. That means that there may be some irresponsible comments made. I'll do my best to keep this page "civil." In the meantime, I would love for some truly big shot economists to attempt to destroy my logic. Let them come!).
* * * * * Submit Your Criticisms or Alternative Plan Here or Send This Page To A Friend ENTRIES SUBMITTED SO FAR appear below...
Patricia Kidd kidd911rn@hotmail.com
From: Oakland,Ca 94607 (IP Address: 76.195.162.177)
Added: Friday, December 5, 2008 7:50 PM
Comments: Mr. Clark, this is great! My favorite part : That reality is that one will not be motivated to produce if the government continues to take our money via a variety of taxes, fees and disincentives to work. Yes, we mumble and grumble about that very thought! ----------------- I live in Oakland Ca. I have worked a nurse in our local urban city ER for a bit over a decade.Prior to moving here I worked in Va.ER's (including Lexington)for about that same amount of time.My thoughts are not specific to just my area of the country. As more people lose their jobs they also lose any health insurance/ benefits their employer may have provided for them (COBRA-continuing that insurance on your own-is extremely expensive) Our particular city/county in Ca.has already been hit hard by budget cuts. Unfortunately more and more cuts have been made to public services- services that should and would have been able to help people in a time of need or crisis.Mental stress and related diseases are becoming a reality. We already see an increase in petty theft, muggings,armed and aggravated robbery.We are also seeing more people that have no other resources but our ER. They can't afford their meds, can't afford a PMD visit, can’t afford proper nutrition or sometimes have no idea what comprises proper nutrition. Now the school kids will have cutbacks in their lunch programs. This may be the only fairly balanced meal these kids get. These cutbacks will cost us much more in the future. I prefer my tax money stay primarily in our country to first take care of our country's critical ills. Yes, of course we provide for our troops! That is a given. Temporarily (at least) eliminate capital gains taxes to perk up stocks. Give tax breaks to businesses that provide healthcare/insurance to their workers. Keep our jobs in the USA. Provide incentives for this. We should phase out so the countries that have become dependent on these jobs have time to plan and prepare so they can utilize their talents and skills for their own countries. YES, improve our nation’s infrastructure. This provides jobs and can provide preventative maintenance.This is eventually money saving. Implement asset-management programs! Place the welfare and education of our children as the number one priority. Let the teachers have manageable classes and the ability to give the kids the attention they crave and deserve so they will have faith in their abilities. Teachers can give a child the confidence and pride that some of the parents can’t seem to give. Let these kids have the ambition and dreams that education and self realization provides. In a generation our country will reap the rewards. These teachers- good teachers should be among the most highly paid workers in our land. In addition, why can't some of the 'welfare Moms’ or ‘deadbeat Dads’ help out in the schools or in other programs? This can be positive for all involved. They would of course be carefully screened and cleared. Keep technical schools open! They are a valuable asset to our future. We’ve forgotten Chinese Proverb : Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime. We have been raising generations of people who figure we owe them for one reason or another. I want my taxes to go to those who truly can’t help themselves and have honest needs. In my city- fix the traffic lights so they run smooth- let traffic flow so we don't waste fuel. Put up cameras so red light runners get ticketed. This would be big moneymaker here! With a camera, the 'runner' can't go to court and say "the cop was rude"," the cop was a racist", “the light was still yellow" etc. My personal favorite thought: Take the profit out of healthcare. Yes, non- profits can make money. Sometimes lots of money. Non-taxed money. Their CEO's can and do make millions a year. I make a good living. Ancillary and support staff makes a good living as we should. Even our vendors do well. Why should there be profit if we are simply supposed to be taking care of each other? If we had a better system- the 'haves and have-nots' would have the same care but the 'haves' wouldn't be paying for almost all of it as we do at this time. By the way,the rampant abuse of the healthcare system is appalling and costly. Yes please, may we have accessible / shared medical records? They can go far in decreasing abuse of ‘hospital and doctor hopping’ as these people drain already compromised services and resources. Accessible medical records can be life saving in an emergency. Thank you for this chance to speak. pkidd
* * *
Send This Story To A Friend or GO BACK TO THE WEEKLY'S HOMEPAGE! Attention Printed Edition Subscribers! View The Best Of The RW Online Now!