Fixing the economy Globally

The reality cannot even be anymore as plain as day. The writing is on the wall. The USA really has two choices, which is to continue business as usual with never ending deficit spending leading to high taxation, which in turn of course hinders the economy by burdening all business and leaving the consumer with less or we can seriously have a look at where we are today to make drastic reforms in overall Government size to where we can adapt our current course of complete economic implosion and Government insolvency and just systematically reform a new lean and mean Federal Government to save Trillions of dollars and to pay down the National debt.


First and foremost, I want to make it clear that I do not have a desire to see current Federal employees unemployed, just as I would not want to be unemployed or anybody in the private sector to be unemployed either, which is why when Federal Government downsizing occurs, it needs to be performed in stages to ensure that employment transitions occur seamlessly for Federal employees who loses their jobs through out the down sizing process.


Why is it imperative that we down size the Federal Government? Well for starters we currently have about $108 Trillion dollars in unfunded liabilities, approximately $60 Trillion dollars in National debt and a $13 Trillion dollar (and growing) budget deficit as well as unemployment/underemployed U-6 of 22% (May 2010, Labor Department statistics) of the Nation and a weak private sector that is constantly shedding businesses every month in Bankruptcy while trying to sustain a $3.8 Trillion a year budget and only bringing in around $2-$2.2 Trillion a year at the Department Treasury and as unemployment rises and businesses continue to fold the revenue coming in will obviously like a total no brainer, decrease . In essence, the current course that we are on is leading us right towards a cliff at the Grand Canyon and the results are not going to be pretty if we fail to act and change course soon!


So obviously if we are to be a society with any brains we have to balance the Federal budget 1st and create budget surpluses to pay down debt and at the same time we need to limit Government interference in the Private sector to encourage small business start ups and to encourage existing companies to have the ability to grow. This can be easily achieved if we decided to reduce our Corporate tax rate from 36% to 15%. As a result of doing this, companies will gain an immediate ability to grow inventory, advertise more and as volume of business increases, these businesses will eventually generate new employment again. The Federal budget should be reduced to $2 Trillion dollars a year as well.


How do we shave $1.8 Trillion from the Federal budget? Well for starters, it will be essential to repeal and reform the recently forced health care reform bill that passed with 75% of the Nation opposing the ridiculous bill and was only able to pass with bribes, threats and arm twisting in Congress and of coarse nobody has forgotten at all just how anti American and Authoritarian the entire process truly was, not to mention the fact that the Nation had no money for it at ALL during the worst recession since the Great Depression. The HCR bill is just too expensive! Next it will be essential to eliminate the Department of Education, which wastes approximately $200 Billion dollars a year with virtually no improvement in over all National education for the Nation's children. Saved revenues and 100% authority should be returned to the States and tax payer, who we all know are highly interested in ensuring that Education is properly funded so that America's children receives the best primary Education possible. The only real change that would occur is that the parents would gain greater say in their child's Education at a more local level and through new taxation at the State level, less fraud waste and abuse will occur resulting in more bang for the buck in overall Education. After wards the Department of Defense should consider 2 outcomes in order to save serious money. Option 1 would be to assemble a plan to charge regional Nations to pay for DOD's deployment and contracting expenses should it be determined that US Military actions benefit regional Nations economically or Option 2 which would seek to save $75 Billion a year in down sizing non essential foreign military bases, which total at approximately 700. DOD could control 100% of the action, they could be permitted even to increase the size of certain bases as they deem necessary, but ultimately they will need to save $75 Billion a year. If they can save more in an intelligent manner without jeopardizing National Defense, then a pay raise for all E-1-O-9 service members in all branches should be issued at 10% over their annual salaries, so long as the savings covers the overall pay increases. DOD could also look at ways to increase the life expectancy of non combat equipment and machinery and if they achieve doing an outstanding job in saving more than the targeted $75 Billion a year reduction, then 1/2 the money saved every year will be returned to the Treasury in savings and the other 1/2 kicks into additional pay raises equally divided for all Military Service members. In effect every unit Commander will have the joy to announce to their service members that they have the ability every year as a team to increase their salaries, every year as a team. That is outstanding positive reinforcement to make efficiency become habit, because now it pays to be efficient and it pays to make everything stay in top notch shape and last longer. This concept will not be permissible on body armor, combat systems, weapons or critical technologies as determined by DOD's top command, because such things will have to stay on a schedule of new and the best at all times, but anything and everything else, play ball!

A third area to save tremendous amounts of money will be to review thousands of agencies to determine which agencies should be down sized and or eliminated. A target of savings should be set at $75 Billion a year.

A fourth area to save money should be a target of $10 Billion a year in the Department of Energy.

A fifth area to save money should be in reforming Social Security which has never received proper funding in the 1st place.

Social Security should become a new 21st Century individual controlled investment account with Federally backed Insurance that strictly protects the amount invested in by the individual and employer, but does not protect the amount of targeted gains. This would truly be a Republican/Democrat compromise. This would allow a choice of investments that the individual can make in US markets, but ensure that they don't lose it all if they retire during an economic downturn. In essence the Social Security individual will either at least have a savings for retirement to retire with just enough or if their investments were wise and good then they would have the ability to retire in style. This concept would perfectly balance between the Democrats strong desire of centralized control and the Republicans desire to allow individual liberty. Solving Social Security if it can ever happen will have to be a perfect compromise by both Party's otherwise the problem will never be resolved and as a result of not solving the Social Security problem, then more than likely it will go belly up and then nobody will have anything at all. A market control of age to retire should rise when times are bad and lower when times are good randomly due to uncontrolled market forces and the American people should be told that that is just how it goes to ensure that everybody has their Social Security protected. Markets are some times very good and some times markets are horrible.


A new fair flat tax system should be installed with abolishing the income tax and estate tax.


The new excise tax system will be as follows: (The way it is composed is again, trying to compromise the ideological differences that the left and right has, but no less the Treasury will gain more money than ever and every tax bracket of income earners will save too)


Subsistence items = No taxation what so ever. A huge list could determine what is essential to human life with no luxuries. Example: grocery food, non soda/alcohol drink, 1st home, diapers, clothing items under 2010 value of $100 per article of clothing, shoes, baby products such as cribs, rocking chairs, pacifiers, heating furnaces for homes, tooth brushes, tooth paste, soap, shampoo, toilet paper, coats, jackets, etc.


Common items = 7%. This could include: household goods, electronics, tires, cars, motor oil, tools, machinery, office supplies, lawn care products, lumber, ladders, industrial materials, cement, concrete, steel, copper, guns, ammunition, air conditioners, humidifiers, books, caskets, grave stones, bubble gum, perfume, cologne, cosmetics, news papers, and much, much more.

Luxury items = 9%. This could include: expensive paintings, jewelry, boats & yachts, high end automobiles, ATVS, snow mobiles, fast food, candy, sweets, soda, sugar, private jets, hot tubs, pool tables, 2nd home& beyond on a private basis, sex toys, trains, Rec vehicles, fur coats, etc.


Vices of life items= 12%. This could include: Alcohol, tobacco products, marijuana, coffee, tea, slot machines, craps tables, black jack tables, roulette tables etc.


Surplus revenues should be utilized as follows: 65% pays down debt and 35% is utilized for small business grants and Nano technology research and development Grants for primarily medicinal purposes to create a new major US Industry to produce a new technology that will render Global demand. 60% of the 35% should be utilized in Nano Technology research and development Grants to companies that employ US citizens in the USA to work in that sector. 40% of the 35% should be utilized for small businesses who can expand and new start ups with excellent business plans. The SBA should employ Fortune 500 companies to produce a rotating staff of review teams from the Private sector to make the reviews. The Fortune 500 company should be compensated direct tax free $35,000 a year per person produced with an MBA to the SBA review board and then that individual who will only serve 1 year on the SBA review board will review and determine which small businesses are approved or denied Grants. The MBA will be compensated $65,000 for the year and will receive a 10% commission on the new start ups or expanding small business 1st profitable year net profit total. So with that being said, if the MBA approves a Grant to losers who can't ever profit, then the MBA earns no commission, but if the MBA picks winners who end up making huge profits then the MBA could make a killing. This will ensure that a positive impact occurs in the overall economy and will protect the tax payer against fraud, waste and abuse. The Fortune 500 companies will all produce people for SBA reviews and then the company that produces the biggest winners will win bragging rights where the President of the United States will spoil them at the White House for 5 days and nights where the CEO, COO, Chairman of the board, the largest share holder and the crowd of MBA's that served on the SBA's review board who produced the highest small business profit totals will stay and be wined and dined as a team award. Everybody will receive plaques, X3 photos individually with the President and X2 free advertising media blitzes, one at the beginning of their stay and one at the end of their stay will ensure that the entire world knows who has the top dogs in the business world, which will be great for the Fortune 500 company in free advertising! Under this scenario the Government provides the business promotion shell with the SBA and Americas finest Fortune 500 Companies fine tunes Americas new business all stars so that the economy can truly succeed. It's kind of like marrying the best of two different worlds!

Now that a fair flat tax system is installed the entire IRS at a huge tax payer savings can be shut down. The average small business which spends approximately $183,000 a year to properly maintain their books can now save most of that money in accounting, which of coarse will have an immediate and positive impact on the overall economy. The Department of Treasury will be all that is needed to handle the 15% Corporate tax arena.

We have now saved a minimum of $1.48 Trillion a year with real potential to save even more.


Once all of this has been done then multiple factors will occur. The Treasury will gain more money than ever before in American history so that we can really pay down the National debt, the Federal Government will remain strong and effective while being slightly smaller with a balanced budget producing budget surpluses, businesses will thrive, the unemployment rate will drop fast and individual earners will keep more of their money in their pockets where that money belongs. I have seen nobody in politics today from any Party produce such a winning plan!