Introduction
As a candidate for the US presidency, I should share my thoughts concerning tax reform. Herman Cain offered his 9-9-9 Plan, which he claims will lead to a Fair Tax. Rick Perry’s talking Flat Tax, which he says he’ll announce in detail next week.
I call my plan the Voluntary Tax Plan. This I introduced two days ago as a posted comment to an article on Yahoo News. Yeah, I know: Yahoo News is not the world’s most prestigious forum for introducing new proposals. But as a candidate totally lacking in financial resources, I have to take what I can get.
This is what I posted:
QUOTE:
Here’s a half-baked idea – which some of you might refine (please do).
Congress should enact legislation to phase in tax cuts across the board. The following assumes no change in personal income for the years in question. [I’ll expand on the previous sentence after the word UNQUOTE below – Steve.] For the first year, everybody pays 10% less in personal income taxes to the feds than they did the year before. The next year, same deal. I’m tempted to add yet a third and a fourth year to that – same deal. But corporate tax rates wouldn’t be changed.
Social Security payouts and Medicare wouldn’t be touched. But Defense spending would be the first to feel the pinch.
I propose that each US corporation (and any patriotic private citizen in a donating mood) voluntarily contribute to whichever threatened government program they favor. This might be a form of ultimate brinksmanship, but I am firmly convinced that corporations will pony up since they know how good they’ve got it and would be in the best position to contribute. Not to mention: Corporations think they own this country anyway, so we should force them to make the contributory choices necessary to protect what’s theirs.
Maybe it’s about time US [government] expenditures were calculated as part of a business plan. Then we’d see how much we really need to spend from hard-headed businessmen who know about bottom lines and reasonable business expenses, not giving a hoot about earmarks, or about pleasing special interests.
Oh, did I mention a permanent cap on government borrowing? And maybe (just maybe) the stimulus our economy needs would come from the increased spending from We-the-People having less of a tax burden.
Steven Searle for US President in 2012
“Don’t beat me up too badly about this, since (honestly) this thought just popped into my head. In any event, it’s got to be better than 9-9-9 or Perry’s flat tax (Perry’s obviously desperate at this point).”
:UNQUOTE.
Expansion of cited sentence, above
Now I’ll expand on the cited sentence in the quote above, which I’ll repeat: “The following assumes no change in personal income for the years in question.”
Suppose a taxpayer’s income does increase (or decrease) from year-to-year. I will take Year 1 as an example. If he earns more during Year 1, he wouldn’t pay 90% of what he paid for that prior year. He would pay 90% of what he would have paid during that prior year had he earned his higher income during that prior year. The same idea would apply for those who end up earning less, and this adjustment would be applied for any future year involving these legislated tax cuts.
“Shooting Game” objected
Someone posted a reply to my plan – calling him(?)self “Shooting Game.” He(?) wrote: “well is not defense one of the main responsibilities of the federal government?”
I replied to “Shooting Game” as follows:
QUOTE:
We’re all responsible for our national defense, aren’t we – not just the feds? For instance, the way we vote could affect how large or small that defense is, regardless of whether it’s supposed to be “one of the main responsibilities of the federal government.”
The security of the United States is not only the concern of each citizen, it is the concern of those who make the most money from this enterprise. If push came to shove and my plan were to be enacted, we wouldn’t even come close to not having enough money to defend ourselves. Corporate and, yes, even personal charitable contributions would keep the Pentagon afloat. If not, then what would that say about how much we care about our country? In other words, maybe it's time the more hawkish among us put their money where [their] mouths are.
Steven Searle for US President in 2012
“Don’t worry…if it even looks like we might come up a little short, foreign countries would be anxious to contribute. Maybe it’s about time they did.”
:UNQUOTE.
Voluntary Tax Plan?
Of course my plan isn’t 100% voluntary. Nor am I committed to the 10% rates of reduction. Unlike Herman Cain, I effectively admitted that my plan is a work in progress – hence my opening statement (above): “Here’s a half-baked idea – which some of you might refine (please do).”
I envision major US corporations huddling, both before and as my plan wends its way through Congress, to come up with a unified response. I intend to propose my VTP immediately. I expect Congress to shoot it down without fanfare – most likely killing it committee. However, in January of 2013, I will ask the American people to vote in a new Congress for 2015. I will emphasize, the only way to change our tax system is to (at least) throw out all incumbents and (at best) vote in independents representing no political party.
This, of course, would be necessary to enable passage of any legislation opposed by the special interest lobbyists who are so ably represented by our current crop of Congressmen.
Since I couldn’t get a cooperative Congress before 2015, that will give our corporations time to develop their business plan – that is, their response to my challenge to “voluntarily” cover the shortfall my tax cuts would generate. I have a great deal of faith in the efficiency of the modern US corporation, which also would be quite unwilling to kill the goose that lays the golden eggs by starving it of “necessary” revenue.
Of course, what defines “necessary” will be a function of how our corporations and our military huddle to determine the real cost of the best defense we can buy for the amount of money available.
Comprehensive Tax Reform
I have a number of ideas concerning a total tax reform package.
ONE: We would have to enact Economic Transparency Laws in order to remove, to the greatest possible extent, the veil of secrecy that surrounds our corporate transactions. I am skeptical of claims that such ETLs might compromise a businessman’s competitive advantage – especially since all US businesses would be covered by such laws. As for foreign corporations doing business on US soil, they would (also) have to realize: Such disclosure is now part of the cost of doing business.
Without having as much financial data as possible at our fingertips, how on earth could we possibly make intelligent laws governing business conduct and general taxation?
TWO: I would oppose tax exemptions for charity and for religious establishments. Actually, I would oppose tax exemptions for everybody.
THREE: We should take a serious look at how badly our 50 states undermine their own economies, while in competition with each other. My new constitutional model, based on a concept I’d developed in the 1970s, would mitigate the effects of cutthroat interstate competition. My system, which I call Cross-Sectional Representation, is linked here:
Herman Cain vs. Steven Searle
I won’t pretend to know all the answers, so that would make me far more open to suggestions than Mr. Cain. I don’t have any secret group of economic advisers (as does Cain). I’ve never been a businessman – having been a lifelong state civil servant.
Quite frankly, though, I find Herman Cain to have far more bluster than wisdom. This quote from his website is a case in point:
QUOTE:
Phase 2 – The Fair Tax
Amidst a backdrop of the economic renewal created by the 9-9-9 Plan, I will begin the process of educating the American people on the benefits of continuing the next step to the Fair tax.
· Ultimately replaces individual and corporate incomes taxes
· Ends the IRS as we know it and repeals the 16th Amendment.
:UNQUOTE.
Cain said (above): “I will begin the process of educating the American people…” Just who the hell does he think he is? Some kind of savior? Does he really think that much of himself or that little of us? Or both?
As for repealing the 16th Amendment, enactment of the Fair Tax wouldn’t do that. Only a constitutional amendment could – and that’s no slam dunk.
I suspect Herman Cain doesn’t know squat about macro-economics. Bravo for him that he has a bachelor’s degree in mathematics and a master’s in computer science. But those don’t translate to a broad understanding of economic policy. To be sure, my humble background (an AA degree) doesn’t bestow that understanding either. Here’s the difference: I’m willing to admit it. Cain, however, comes across as one who is trying to position himself as the mouthpiece for an Elite he respects/fears but doesn’t understand.
Herman Cain is, after all, a motivational speaker. He gets paid a shitload of cash to turn people on. I wonder, though, if anyone who listened to his paid performances feels he sat through something profound. Or was it just rah-rah, go-team kind of stuff?
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Steven Searle for US President in 2012
Founder of the Independent Contractors’ Party
“None of the other candidates will be able to enact their tax reforms, since (unlike me) they are unwilling to challenge a status quo Congress dominated by the big two political parties. After all is said and done, only such a challenge will end up making a difference.”
Contact me at bpa_cinc@yahoo.com
No comments:
Post a Comment