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Is there a viable economic plan for our country? Yes, there is, but our Presidential candidates have not proposed one

Both Obama and Romney do not have a viable plan to turn our economy around.  Romney’s reduction of taxes for the rich and corporate America would plunge all but the 1% deeper into poverty; Obama’s proposal to allow the Bush tax extensions to expire while reducing corporate income taxes will do virtually nothing to improve our economy.  And Obama’s infrastructure and jobs bills, amounting to little more than $100 billion in spending when economists like Krugman have been proposing trillions, will merely be a temporary pain killer for our economic ailment and certainly no cure.

What needs to be done?  Has any Presidential candidate presented a real viable plan to turn our economic livelihood around in the near future?

I have one.  And it is based largely on what we had in place prior to Reaganomics and the Corporate takeover of our government, particularly the tax policies that were effective in the 1950s and 1960s, our country’s golden years.

First, raise taxes DRAMATICALLY on the rich and corporations.  I am not proposing a measely raise to the Clinton highest effective tax rate of 39.6% or the pseudo-progressive rate of 49% rate proposed by the Democratic Progressive Caucus, but the 91% rate in effect during the 1950s.  Also raise the highest income tax rate on corporations from 35% to the 52% rate also in effect during the 1950s.

Secondly, eliminate capital gains rates on all investments—other than in physical assets constructed here in the United States requiring American labor and American manufactured goods—and on carried interest of hedge fund managers.  Instead tax all those capital gains on stock sales at ordinary income rates.  Make Mitt Romney pay 91%, not 15%, in taxes.

Third, uncap the security security tax threshold presently at $110,100.  Tax every dollar of earned income.

Fourth, make these taxes retroactive for three years:  go after all those trillions earned by those huge corporations and the rich over the last few years.  In Connecticut, Governor Murphy made an increment in the state income tax retroactive to the beginning of the year, even though it was enacted in July.

Fifth, eliminate all business tax credits except those creating jobs in America.

Sixth, tax all deferred compensation on individuals earning more than $250,000 (including the deferred compensation) per year.

Seventh, eliminate the dividend exclusion from taxation for corporations.  Corporations need to be taxed on dividends, too.

Eighth, increase the federal unemployment tax on large corporations since their downsizing and outsourcing are largely responsible for the unemployment in the first place.

Ninth, raise the inheritance tax back up to the earlier 77% rate from its present pitiful 35% rate, and reduce the estate tax exemption from $10 million back down to $600,000, where it was for decades.

Tenth, lower or eliminate taxes on small businesses, which create 80% of the jobs in this country, and on individuals earning a modest income.

Next I would void all trade treaties negotiated since Clinton became President.

And with all the tax revenues from walloping the rich and Corporate America, I would bring back CETA and WPA programs to provide much needed jobs to rebuild our infrastructure as well as to provide job training.  The idea behind the increase in taxes on the rich is to provide the necessary resources to fund domestic government spending.   The justiciation?  If Corporate America insists on sitting on trillions or investing overseas, then transfer those funds through aggressive taxation to the government to invest here in our country.

Of course, Glass Steagall would have to be re-enacted and the Sherman Anti-Trust legislation would have to be vigorously enforced.

It took me merely ten minutes to propose this economic plan.  And much of it was derived from the economic plan in place when our working and middle classes prospered.  Now I ask you, why our very intelligent, ivy-league educated Presidential candidates, surrounded by purportedly the greatest economic minds in the country, cannot devise a workable economic plan even though they had years to do so, while preparing to run for or serving as President of our country?

Many of you may think my tax proposals are “extreme”; however, my tax proposals were largely in place for decades when our country boomed, whereas Paul Ryan’s proposal to eliminate all taxes on the wealthy’s capital gains, dividends, and interest income is the extreme tax plan, making mine appear modest in comparison.

Please feel free to add your fixes in your comments below.  There are many other steps we can take to improve our economy.  All it takes is the imagination to break free from the propaganda fed us over the last few decades from Corporate paid mouthpieces.

The Barefoot Accountant

 

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Barefoot Accountant

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