The US needs to alter a critical mindset – one belonging to our primary job creators – entrepreneurs, investors, private corporations.
At present, our corporations possess approximately $2 trillion in cash or quick liquid assets; this is near 40 year high as ratio to GDP. Their current mindset is:
Why invest in an extremely business hostile environment? We have to contend with Dodd Frank, ObamaCare, 40% increase in our debt last 2 ½ years, 12% US dollar decline, US support for Brazil oil drilling while disallowing ours in contempt of court, EPA implementation of Cap n Trade, and the most blatant – Government attempt, via NLRB, to mandate how and where our leading exporter (Boeing) can expand.
Two specific proposals – “cut, cap, balance” and the Fair Tax, if implemented will quickly change this mindset. The former will cut borrowing by ½ next year – yes ¾ of a Trillion and pass a balanced budget requirement. This will decrease risk of near terms (this Summer) of substantially increasing interest rates. This will also shift available resources from the wasteful public sector to the private. The latter’s 0% federal corporate tax will position US immediately as a haven for global venture capitalists, all while being revenue neutral, progressive via prebates to low income. Elimination of IRS and projected $430 billion annual savings to the economy, will also add finally again to a business friendly – I want to invest in the US mindset.