Defeat Statists


Myths about Tax Policies and How to Defeat Statists

To defeat statists we need to dispel this myth of Tax Cuts harming the economy

Please read viewpoint in IBD Dec. 1, 2011:

http://news.investors.com/Article/593253/201111301748/startups-not-taxes-fueled-the-1990s-boom.htm

The article discusses the myth that our economy boomed because Clinton raised taxes and that our economy crashed because Bush lowered taxes. This Democrats and media have aggressively perpetuated this myth to point that it has become an especially large hurdle. And yes, Republicans have weakly at best challenged this myth.

A major reason Obama won in 2008 is because of the following:

Just before the 1st TARP vote, with McCain slightly in polls’ lead, Pelosi lambasted Bush for his tax cuts that lead to the financial debacle confronting the nation. No prominent Republican came out to challenge and dispel this myth. If one did I missed it and I follow the media extensively. This action was a major reason why I decided to stop contributing to the RNC.

As concerned Americans we must take every opportunity to educate our largely economic illiterate citizens. We must also champion economic principles that will once again reawaken our America spirit and drive the economy forward again.

Let us also accentuate the positive – measures to grow our economy. Two simple measures are energy and industry-union policies. The carton below well ties both together.

http://news.investors.com/editorialcartoons/Cartoon.aspx?id=593066&Ntt=Cartoons

Two main broad points about how to deal with statists and this vote in more capitalists to Congress and of course to Presidency:

1. Articulate benefits of our free market approach to the economy and tax reform. This must be done in a way an average American can understand.

2. Anticipate then confront all myths that the media elite will generate. Despite growing influence of alternate media, the socialist leaning media elite still is relevant.

Policies to advocate:

These come to mind (please add).

1. Drill for oil, in ANWR too, shale, and frack because it is safe (it is 1000’s of feed deep, not 100’s where water is).

2. Restore rule of law – obey federal judge decision to open Gulf for deep ocean drilling.

3. Restore economic freedom for individuals and corporations. Attacking Boeing is inexcusable. Federal government must NOT discriminate against ‘right-to-work’ states.

4. Champion tax reform via Fair Tax.

5. At minimum freeze federal spending for 5 years and thus force government to restructure and become more efficient as private business have.

6. Repeal ObamaCare – get bureaucrats out of medical decision making

A special pitch for Tax Reform via Fair Tax

Can anyone justify fact that percentage of tax code compliance cost to actual amount of personal income tax collected by the Treasury is approximately 19.5%? Yes. Compliance cost is $430 billion / year (source: group of economists lead by Art Laffer). Total annual personal income taxes collected annually are about $2.2 trillion. This is clearly $430 billion of waste.

Few flat tax proposals decrease the compliance cost. However the Fair Tax (in Congress as HR 25) eliminates this completely; hence the Fair Tax, is the most promising tax reform option. It eliminates all federal personal and corporate income and payroll taxes and replaces that with a revenue-neutral tax of 23 percent for all “new” products and services. It is progressive, provides “prebates” to lower-income earners. It eliminates the IRS, which alone will boost our GDP annually by at least $430 billion. Gone also are tax write offs that do little if any to generate additional economic growth. The 0% federal corporate tax rate will position the US overnight as an entrepreneurial friendly haven. Foreign and domestic investors and venture capitalists will take advantage of this; this will accelerate our economic growth and Treasury revenues thereby reducing the need for severe federal, state and local government cuts.

Please reference http://www.fairtax.org for details.

For analysis of tax reform, please visit https://economics501.wordpress.com/2011/11/12/tax-reform-update-111111/

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About economics501

1 - free market Capitalist; 2 - Fitness Entrepreneur; 56 years old, VP at an Investment Bank in NYC, ex Venture Capitalist, happily married with 2 girls. Education: Rutgers and NYU. I allow Ted Hruzd, my friend to blog at will here. He has many posts here. I have known Ted since we were both students at NYU. Ted also works for an Investment Bank as a VP in Equity Global Markets. ------------------------- I was very very Socialist leaning as a 22 year old. I then strongly believed in Gov role in helping the poor. However, as a USDA Child Nutrition Programs, I personally accounted for millions of fraud, abuse, and waste of tax payer money. I came to believe that the poor would be best served with less Gov programs and more with direct aid via tax system. Then after 5 years I became a free market capitalist, was a venture capitalist in 2007 and helped start 2 high tech companies. I dedicate this site to champion free market capitalism as the best road to Prosperity. Please join in. If you disagree, fine, but please post with dignity and class and be civil. Argue with facts always.
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