I wrote this in 2015 to show a path to get America moving again and create jobs. This plan cuts taxes for all Americans, has three simple tax brackets, reduces business taxes to 15 percent and eliminates the death tax. The reason we are in this fix is because Obama has stifled our economy with Obamacare, excessive taxes, needless regulations and unconstitutional executive orders. If President Trump and Congress will adopt this approach we can create full time jobs, increase wages and provide hope and opportunity for our citizens.
For most of the years since 1945, America’s economy has grown steadily resulting in a path to prosperity for a great number of us. It has, quite literally, been the most powerful engine of freedom in the world. When John Kennedy faced a period of economic doldrums, he took action that – after his death – resulted in economic growth of over 10% in 1965. Ronald Reagan, facing a similar problem, took similar action. He, too, brought our economy to average 10% growth in 1983-1984.
But the economic meltdown of 2008 saw our growth slow to a negative 1%.
Those growth percentages mean something to every American. They determine whether good full-time jobs are available. They determine whether families can afford homes, cars and college educations for their children. When the economy slows, jobs get scarce. When jobs are scarce, America’s path to prosperity – the American dream our parents always talked about – is blocked.
Since 2008, under President Obama’s economic policies, the only things that has grown in America is government spending and debt. His “stimulus plan” didn’t stimulate the economy. His Federal Reserve has kept inflation down by “quantitative easing,” a policy that artificially depresses interest rates by buying up government securities. His “jobless recovery” is an economic oxymoron, and all of his economic policies have only added obstacles to recovery.
In the first quarter of 2015, US economic growth was a paltry 0.6%. The second quarter results weren’t that much better: only 2.3%. Our economy should be growing at a rate three or four times as great.
Jobs are still scarce because America’s economy has still not recovered significantly. It’s stalled because Obama’s policies don’t allow it to recover. We have the highest business tax in the developed world. Regulations are strangling businesses and entrepreneurs face unnecessary risks. No wonder jobs are scarce. Businesses are faltering and growth is stymied.
According to the Bureau of Labor Statistics, roughly one-third of the entire population of the United States – about 100 million people – don’t have full-time jobs.
I have devised a plan called “The Growth Code” to repair our economy. The Growth Code’s specifics are:
- To simplify taxation on individuals and families those who continue to file their income taxes on the standard Form 1040 will be subject to a simplified progressive tax of 10, 15, or 25%. Deductions will be taxed in accordance with the “No Double Taxation” rule;
- To unify all business taxation in the United States. All business income will be declared on the same tax form for each business. Taxes will be imposed at the rate of 15% for business-created income;
- To allow for immediate first year expensing of business investments. An option should exist to allow expensing any credit against future years’ income if it can be shown that the income from the investment occurred after the end of the year in which it was made. Under current law, gradual depreciation schedules prolong recovery of the investment and prevents full recovery of the amount invested in the business for equipment or other assets;
- To end double taxation on individuals and businesses which is an existing bias against investment. In the current system, profits, interest or other earned income from investment is taxed as ordinary income in addition to the business tax rate. Spending on consumption is now treated more advantageously than saving for investment. It is our contention that we should level the playing field so that consumption spending and saving for investment are treated the same.
- To provide that profits earned abroad are repatriated to the U.S. tax free because those profits will already have been taxed once by the foreign country. Under this principle, dividends and capital gains will not be taxable to the person receiving the money, because it has already been taxed once at the corporate level.
- To provide that deductions for mortgage payments will continue to be deductible for an individual. Also, The Growth Code does not propose to disturb the payroll tax which goes directly to fund entitlement programs. Charitable contributions will continue as deductions based on the recognition of the long-standing American belief that private citizens who desire to fund charity and provide services should be able to do so to relieve what would otherwise be the government’s burden.
- To provide that every citizen will pay some form of tax, usually at the lowest 10% level under the simplified tax brackets. However, we recognize the need and desire to shield the very poor and families. With this in mind we propose to establish a Family Refundable Tax Credit (FRTC) of $4,300. Families earning less than the poverty level would receive this credit in the form of a check to supplement their income, reduced in the amount of their tax liability.
The Growth Code is not a collection of pie-in-the-sky theoretical remedies to our continued economic problems. These are the historically-proven policies that worked for Kennedy and Reagan.
When the Growth Code is enacted into law, the results will be a new turbocharged economy. Growth will recover quickly from its lows in the Obama years to exceed the historical average of 4% per year. Unemployment – real unemployment, which now ranges above 9% — will drop significantly because new good jobs will be created. Wages will go up due to job growth and the American dream will suddenly become achievable for millions of Americans now denied it.
Americans want jobs and deserve an economy that enables good, productive jobs to be found. Mr. Obama believes, as he once said, that if you have a successful business, you didn’t build that. Mrs. Clinton, as she has said, doesn’t believe people should listen to anyone who says businesses create jobs.
We know better. We have to get government out of the way so businesses can create jobs and America can prosper again.