FELLOW LIBERALS, PLEASE NOTE:
This is a 7-Step program, and Step 1 is the most startling
and controversial step. Please do not cast this whole thing aside as soon as
you read what’s proposed in Step 1. By Step 3, you’ll see that #1 was not the
foolhardy proposal that it may have seemed to be at first reading. Here’s my
proposal:
1) Declare a 1-year moratorium on
collection of FICA (federal payroll) taxes for all employers and employees.
This will, in effect, give every employer a tax break equal to 7.65% of payroll,
and every employee a 7.65% “raise,” thus providing the "jolt" that our economy needs right now.
2) After the first year, start phasing
the tax back in, as follows: Increase the tax by 2% each year (each, for
employer and employee) for 4 years, while also raising the social security
limit (the amount of gross annual income against which the tax is levied) by
$50,000 each year.
3) After four years, abolish the social security limit altogether, so FICA taxes are
collected on all earned income (remember, it’s only 15.10% of annual
income up to $113,700 now; under my proposal, after 4 years, it’ll be 16% of all earned income).
4) Somehow give strong incentive for people to invest additional funds on their own toward their retirement.
5) For five years, give a tax deduction for 100% of the interest paid on purchases of any big-ticket item manufactured in the U.S.
5) For five years, give a tax deduction for 100% of the interest paid on purchases of any big-ticket item manufactured in the U.S.
6) Beginning in year 6 of the interest
deduction, reduce this deduction (except for the home mortgage interest deduction) by 10% per year until it disappears, leaving
only the home mortgage interest deduction intact.
7) Somehow penalize companies which outsource jobs to other countries, and reward those which insource them.
7) Somehow penalize companies which outsource jobs to other countries, and reward those which insource them.
Since I
am not an economist, I don't know; maybe this wouldn't work. So, I welcome feedback from anyone who can show me why this
would not be a win-win program for everyone.
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I'm not an economist, either, but look at what they have got us into. This seems rational to me — meet and right, so to speak. I don't think, though, that those in power will let such a thing come to pass. Maybe, we can get this plan of yours into Bernie Sanders' hands . . .
ReplyDeleteBernie Sanders is certainly one of the few honorable public servants in Congress; let's try!
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