There are several ways in which the U.S.can revitalize its economy. First, allow everyone inAmericato work. Second, reduce the long-term, structural deficit. Third, invest in key areas like education, clean energy, and energy idependence. Fourth, makes cuts in waste, fraud, abuse, and duplicative spending. Fifth, allow every American equal opportunity. Sixth, put in place government policies that truly will allow businesses to grow.
Many argue of the Republicans argue that the government can’t create job, but that idea is wrong. When the private market fails to produce jobs the government should employ people, but the private sector has failed their role. The government could put in place the CCC, or Civilian Conservation Corps. The government could give the 16 million unemployed Americans money to help them pay their mortgage and pay for food. But, the most ultimate win for creating jobs that most directly benefit the middle class are the establishment of unitization of the private sector. Unions are what have made America great. They allow for the American worker to fight for their rights for equal and higher pay and benefits including health and benefits. Unions aren’t destroyingAmericathey are making the American worker strong. I would agree to reduce the corperate tax rate down to 29%, but only if they agree to hire worker in a meaningful way. If the government enacts policy that business would benefit from the business should have the common decency to do something in turn for the government; and that is hire American workers. The government could incentivize the hiring of workers by providing tax benefits to those companies that hire.
Maybe Obama can create jobs? Hmmmm…
Reducing the Deficit
Reducing the deficit is a complex issue because cutting government spending certainly will have an impact on the economy’s ability to create jobs. (http://www.huffingtonpost.com/2011/08/01/unemployed-debt-ceiling-deal_n_914801.html -This link explains very clearly how governmental policy can negatively effect job growth.) Reducing the deficit in my opinion must occur three ways reducing health care costs, increasing revenue, but still investing in key services such as education, clean energy, research and development, and services to the poor. The more people out of work the most expanses that, and the increase in budget deficits, the government will face. In the long run the best way to reduce the budget deficit to have full or almost full-employment. The current debt deal will kill 1.8 million jobs according to analysis from the Center Economic Policy and Research. That is not a way to reduce the deficit. Also, health care cost factor into this debate. Medicare and Medicaid costs are rising just as health care premiums are rising. The best way to reduce the cost of health care? A single payer healthcare system where everyone can get health care insurance at a prince that they can pay. The government sets rates, the poor pay less and the rich pay more, and the government can negotiate prices to procedures and services bringing down costs. But since this option seems impossible during this current legislative session they’re other things we could do. The Affordable Care Act makes a good start in this area. Medicare doctors will now be paid for their ability to make their patients healthy rather than for every service they provide. Also, the Medicare program will charge surtax on the richest Americans to pay for the sustainability of the program. Also, having more people insured decreases the overall cost of the health care system. 31 million people will now have insurance. These proposals and many others will have a good impact on bringing down the deficit by 300 billion in the first ten years of this law alone. What more can be done? The policy of paying for patients speedy recovery rather than the services a doctor provides should be expanded to the private market; not just the public sector. This policy is called bundling. Also, the health insurance companies should be required to use all of their premiums collect to pay towards their patients who need services; they should only be allowed to pay their employers, and these companies should be making a profit! All in all, the most effective way to reduce the ballooning costs of the government sponsored health insurance programs is to make all Americans covered under these plans, and that would really reduce the deficit.
The deficit should also be controlled and brought down by increasing revenue to the government. I propose creating new tax brackets on the rich, and on the poor;
1-1000 = 1% 10,001-20,000 = 5%
20,001-30,000 = 7% 30,001-35,000= 10%
35,001-45,000= 15% 45,001-49,000= 22.5%
49,001-69,000= 24% 69,001-145,000=34.5%
145,001-250,000= 39.5% 250,001-500,000= 45%
500,001-750,000= 49% 750,001-999,999= 55%
1,000,000-999,999,999= 75%+1,000,000,000= 91%
Also, any capital gains should be taxed as regular income for earners making over 250,000 per year. For anyone making under that amount the rate should be increased to 21.5%; raised from 15%. Deductions for those making over 250,000 per year should be eliminated, but the only loophole that could remain is if earners can prove they need help sending their children to college they should be eligible to receive the college tuition tax credit. Otherwise all loopholes for the rich should be eliminated. But, for the middle class the current tax credits should still be available.
The corperate rates in this country are terrible; is it fair that some companies get away without paying any taxes? (General Electric paid zero in taxes) Corperation should have to pay a fair income tax just like every wage earner. (The rich still need some help with this…) Get rid of loopholes. Make corperations pay a fair tax rate of 29%. But, if corporations refuse to hire workers and be patriotic they can handle paying the standard 35% in taxes.
Our country needs key investments.
Education needs to be reformed badly. We need to get the red tape out of the class room. Teachers are paid to teacher students. Local, state, and federal governments need to get out of the way; yes this is a Progressive saying this. But, funding should be increased to allow our schools to become great again. Put a surtax on the rich. Put a tax on luxury goods. Instead of state testing we need national testing. A test that will evaluate kids reading comprehension abilities, mathematic understanding, and writing skills. We need a national team of teachers to build a national framework for educational standards. These tests should only be given to students in 6th grade and 10th grade to test in these key times of development. We need to pay teacher more; the higher paid the teacher the more likely they will do their job well. We need to stop teaching towards the test and teaching towards success. The states need to stop hammering out rules. We need to federal government to partner with teachers, education, administrators from across the country to produce meaningful standards that make benchmarks for reading ability, reading proficency, reading comphrension, and writing ability. In math students should have to understand basic mathematic principles and apply them to real life situations.
Clean energy can be where real growth occurs in our economy. The jobs in this sector are growing and high paying. Solar panels, tide energy, wind energy, electric cars, solar cars, geothermal, and nuclear energy are all things the U.S.government should be investing in and promoting. There are two ways the government can help reduce its budget deficit and promote clean energy; a carbon tax and a gasoline tax increase. The carbon tax would stop much pollution among U.S.business and force these companies to innovate and find solutions to help them use less energy. While the revenue coming into the government from the tax in carbon would help fund development of new clean energy products. It seems a win, win situation. The companies don’t want to pay higher taxes, so they make what they do require less energy; innovation. And this is good for America. A gasoline tax, even though a regressive tax, would force many American to buy energy efficient cars which use less energy. But, individuals with incomes below 34,500 should be exempted from this tax. This would cause businesses and individuals to innovate how they use energy. Clean energy would putAmericatowards a strengthened future.
We need a government that works for the American people. Tax Reform, along with investments are needed to bring American’s economy back from the brink. When taxes on the rich keep going down an down, but the wages of the middle class keep falling and falling while their tax rates remain steady something needs to be done. And these are just some starting ideas. More ideas to come!