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- Since the 1980s the US economy has been shifting from production to consumption – a trend that has accelerated since 1992. Today our economy is 30% production and 70% consumption. That is not a sustainable economic model and we should all be alarmed.
- A steadily declining standard of living for America’s middle class
- An increasingly fragile domestic economy dependent on consumer borrowing --
- An increasing threat to our national security
- We must invest in America’s future economic vitality! In January 2009, Congress, the President’s Cabinet and the Governors of the States must develop and fully fund an intense, focused Five Year (2009-2014) Economic Revitalization Plan.
- Majority of good jobs in United States are generated by Small and Medium Businesses who have < 500 employees. Congress and the states must create an tax and regulatory environment that promotes the formation, growth and success of these entrepreneurial enterprises
- Expand “enterprise zones” where investment incentives and tax credits help to stimulate the formation of new businesses – manufacturing, logistics, retail etc.
- Expand basic research funding into new technologies, new medicines, and new energy sources. Encourage new business formation through public/private partnerships.
- Create training and retraining fellowships for adults who want to go back to community college to update their skills or acquire new skills (including business formation skills)
- Congressional leaders talk about creating new jobs but cast business/corporations as the villain -
- People with jobs work for businesses and corporations
- If Congress taxes and regulates businesses out of existence or out of America, who will create the jobs the Democrats promise?
- Without high wage jobs to tax there will be not be enough revenue to pay for the cost of government including Social Security and Medicare
- Congressional leaders propose raising corporate taxes. Raising corporate taxes amounts to Congress imposing a tariff on ALL U.S. EXPORTS Reducing taxes on US goods and services restrains prices and keeps US exports competitive in the global market
- SEC should strengthen controls on speculators who are investing money that is not their own: be they Venture Capitalists, Investment Bankers or the local Mortgage broker
- 51 of 55 Million homeowner mortgages in the US are not at risk of foreclosure. Congress must balance the helping credit-worthy taxpayers who find themselves with unaffordable mortgages against the larger interests of all tax-payers. Taxing the 51 million homeowners plus millions of renters to “bail-out” those who deliberately over-extended themselves is a transfer of wealth -- .
- End or greatly curtail the Farm Subsidy Program for grains and corn and encourage farmers to plant more to meet the growing world demand for food.
- Explore a smaller subsidy program for perishable products where US farmers must compete for a share of a more limited global market
- Target subsidies for family-owned farms not giant agri-businesses
- Support NAFTA and expand free trade among the Americas
- 50,000 California businesses are exporters and 95% are small and medium businesses
- The best answer to Hugo Chavez (Venezuela) is a prosperous Columbia!
- Mexico and Canada could get $125 a barrel for oil on the world market were it not for NAFTA.
- Bold action on energy is required from both parties before the November elections!
- Stop purchases of oil for Strategic Petroleum Reserve
- Release crude oil from Petroleum Reserve to bring down international demand and signal our intent to protect our economy
- Expedite release of highway construction and other construction funds budgeted for 2009 and 2010 to create new construction jobs and to improve the flow of traffic in our major cities.
- Improved traffic flow would increase the MPG for most cars
BALANCE the US BUDGET WITH FISCAL RESTRAINT COUPLED
WITH ECONOMIC GROWTH STRATEGIES
- The total National Debt today is in excess of $7 trillion or 2/3 of the Total Gross Domestic Product.
- At the current rate of spending, it would take 240 years to pay back the debt
- The service on the debt is at least $184 billion a year – a debt we seem very willing to pass on to our children, their children and the following 9 generations – the ultimate form of “taxation without representation”
- Over the last half-century the US has moved from being the “richest nation in the world” to a “net debtor nation” – owning $3 trillion dollars to the governments of Japan, China, UK, and Middle East OPEC nations
- Continued spending at the current rate, even assuming a major drawdown in Iraq by 2010, will increase the total national debt as a percent of GDP to a number exceeding 80% of GDP
- 60% of annual federal spending is mandated by statue including Social Security, Medicare and Debt Service
- We cannot tax ourselves enough to pay down the debt – even without additional spending
- To balance the budget, we must grow the US economy faster than the debt is accumulated while minimizing non-essential federal spending.
- Extend lower tax policies to increase the velocity (supply) of money encouraging renewed investment and capital formation to create jobs (and additional tax revenues)
- Raise current year earned income taxes on earnings in excess of $500,000 to old previous rate of 50%
- In 2009 Congress must develop a new Zero-base Federal Budget in which all current general fund spending is re-evaluated, re-justified, refined, and reprioritized before fiscal 2010.
- Ending budget earmarks is a laudable goal but will have a minimal impact on absolute size or rate of growth of the national debt
- Simplify the IRS Tax Code and reduce the number of employees required at the IRS (currently +/- 110,000 staff with a budget of $11 Billion )
- Encourage the American people to invest in US Treasury Bonds
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