Jobs Wanted: Ending Rigged Tax Code = Jobs
August 4, 2011We continue our special, three part series “Jobs Wanted.” Yesterday we explained the trade component. Today, taxes.
I want to get into how they can be used as leverage to influence spending and investments, and foster prosperity and jobs.
First, Washington needs to stop viewing the tax code as simply a way to raise money, and instead use taxes to create results. The U.S. tax code should spur American investment and job creation, not prevent it like it currently does. It is simple economics — if you lower taxes on something, you see more of it. The principle also works in reverse, and I have a great example of how taxes influence behavior — the cigarette tax. Remember back in 2008, New York raised its cigarette tax by more than a dollar to $2.75. The result – consumption fell and the state’s smoking rate dropped by 12%. If the tax code can reduce smoking by 12%, by altering it we can also make investing in America grow by 12, 15, even 20%… who knows! That would add jobs by the millions! We can reverse this flow of money by using the tax code to make investing in our own country more profitable than sending that cash and jobs overseas, or using it for financial speculation.
Of course, another issue with the tax code is corporate loopholes. Every year you and I send a check to Washington to pay our taxes, while large corporations, like GE, don’t pay a dime! Now, I’m not here to demonize big business — they’re simply taking advantage of tax loopholes set up by their friends in Congress. And it’s all legal! But we need to close the loopholes and shatter the practice of large corporations using money and power to gain favorable tax treatment.
The tax code should be ONLY for raising revenue. The mortgage deduction helped inflate the bubble. There are all kinds of loopholes (oil exploration?) already. NO SUBSIDIES. NO LOOPHOLES. Just one HUGE standard deduction. Instead you want to keep the corruption and corporatism but change the targets – if you can. Power corrupts and if you cede the power to use the power to tax – the power to destroy – to do whatever you think good, someone will come along and destroy something you love.
Dylan, you have great ideas. Do you have a think tank with key members of congress to create a job creation bill that will incorporate your ideas?
It is not a new idea — get rid of the IRS with it's very thick and weighty book of regulations and replace it with either a flat tax (no loopholes or exceptions) or, my favorite, a Value Added Tax. Make certain there is no way for lobbyists to tamper with the straight forward and simple application.
Simplify the tax code and people will start businesses again. The Regulations and the Tax code are inhibiting people from taking Capitalistic risks, the same risks that THIRVED to make this country the envy of the world.
This suggestion will help a little, but ignores the primary cause for recession/unemployment.
When 10% own 80% of America, jobs are limited to the motivation of the 10% owners.
The 10% owning America are motivated to conserve, hang on to their wealth, or seek greater profits.
Trillions are tied up voluntarily in the private sector because profit, not job creation, is the primary motive.
Middle America must be given opportunity to regain ownership of America.
This requires lending driven, not by profit motive, but by job and economic growth motives.
Here's a plan that creates jobs driven by economic growth motives.
0 Breaking up the banking/federal reserve cartel creates local job opportunities.
1 Each city government is given the option to open a federal reserve account for local lending.
2 City governments are given a credit line with the federal reserve in proportion to jobs created and maintained by lending activity.
3 All inlay and outlay of city government banking credit line activity is transparently and timely posted on the city website.
4 The city federal reserve credit line and limit is tied to local job creation and local economic growth.
5 Private monopoly of banking/federal reserve access is controlled by competition from local/city governments.
6 City governments encourage industries with their banking capital to provide local jobs and improve the local economy.
7 Cities are traditionally highly motivated to increase local employment, business, and economic growth.
8 Profit motives drive private enterprise. Jobs and employment are secondary private enterprise considerations.
I missed the "ratsrfocrs" website could someone plz send the correct one to me, thanks!
0 Breaking up the banking/federal reserve cartel creates local job opportunities
1 Each city government is given the option to open a federal reserve account for local lending.
2 City governments are given a credit line with the federal reserve in proportion to jobs created and maintained by lending activity.
3 All inlay and outlay of city government banking credit line activity is transparently and timely posted on the city website.
4 Private monopoly of banking/federal reserve access requires competition from local/city governments.
5 City governments encourage industries with their banking capital to provide local jobs and improve the local economy.
6 Cities are traditionally highly motivated to increase city employment, business, and economic growth. Profit motives are weaker.
6 The city federal reserve credit line and limit must be tied to job creation and maintenance success.