To The Editor:
Here are some thoughts on correcting our federal economy budget problems.
Pass Rep. Connie Mack's 1 percent (penny) spending reductions on all federal budget items. Any good manager can find at least 1 percent cost saving in any budget.
Scrap the current federal income tax system. Develop a system where everyone pays a percentage of t heir gross income to the federal government. That is everyone.
Each person and or family receives something of value on which to live. That can be wages, dividends, unemployment, stock options, inheritance income, or whatever a person receives.
Every person should have a seat at the federal income tax table, not just 50 percent of the nation. There would be no reductions for anything.
You pay taxes on your gross income.
Stop using the federal income tax system for social engineering. Someone above my pay grade would have to determine the exact percentage of tax for the various income levels.
The federal income tax law could be one or two pages long. Warren Buffet would pay much more tax than his secretary,
Stop federal income taxes on businesses. You cannot tax a business because the cost of federal income tax is built into the sale price of every product or service provided. You can only tax people. What will businesses do with their profit?
Put into the bank, which will make more money available for loans.
Invest in new plants or equipment that will put additional people to work.
Return their profit to the owners, or increase the pay for all employees. In turn, each person receiving a benefit from a company would have to pay a percentage of that gross income to the federal government. No deductions or allowances.
No need to keep profits in off shore banking accounts.
How many foreign businesses would move their company headquarters to the U.S. if they did not have to pay income taxes? The individuals living in the U.S. would have to pay a percentage of their income to the federal government.
They may even lower the price of their products or services.
Corporations would move their manufacturing back to the U.S. and do what they do best, that is to make better products or services than their competitor.
If the federal government determines that an incentive is needed to encourage some activity, the federal government could cut a check to that individual or business. For example, if the government determines that paying someone $3,500 to purchase an electric automobile is desired, send a check to that person after they own that car for three years.
Same way if the government determines that production of ethanol is desire, then pay that business directly from the U. S. treasurer for the agreed amount.
The suggestions above would cause a big spike in the unemployed. Corporations would no longer need tax attorneys, IRS staff could be greatly reduced, would not need a huge group of lobbyist to influencer tax policies nor would tax preparers like H&R Block be necessary.
Thank you very much for allowing me to express my thoughts on some ways to get us out of the budget mess.
Let's stop trimming the tax system around the edges and try something big enough to make a big difference.
Charles L. Jones
CW4 U.S. Army Retired