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US Federal budget deficit
In 2011, the American people are struggling with a huge political issue and financial problem - the federal budget deficit.
We got into this problem over a number of years while control was held by each party. Playing the blame game is not useful. We just need to solve the problem with policy changes.
America is a Capitalist society. We believe the free enterprise system provides the most efficient control over use of capital, resources and labor. We need to rely on this system to work and not try to use government to micro manage to the advantage of one group over another.
We need to both reduce government spending and increase government income.
We have a second problem, high unemployment due too jobs going outside of our economy due too unfair costs to American based companies relative to non-American based companies.
We allow American manufactures to pay high taxes and high health care costs while not forcing foreign companies to pay a similar cost. This puts American companies at a competitive disadvantage.
We can solve these two problems by taking the following actions:
- Provide a uniform business tax code which treats all companies the same - no favoritism.
- Reduce the business tax to a low level, say a fixed ten percent of profit with no deductions for health care expenses or salaries over five times the median salary within that business.
- Replace any lost federal income from the change in the business tax with a national sales tax.
- If we choose to subsidize the health care for retired workers, we fund it from the national sales tax.
- Provide for a standing Federal debt which must result in paying no more than five percent of Federal revenue as interest on the debt.
- Number five to be phased in over a period of not more than twenty years.
- Retain a simplified progressive personal income tax system which eliminates all non-standard deductions and provides the bulk of income for the Federal government.
- Exclude basic retirement savings from income taxation.
- Treat all personal income from what ever source as income taxed at the same progressive rate.
- Remove the cap on Social Security withholding.
- Means test Medicare payments to provide a deductible.
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