Tax reform ... before it is too late

We find our self at a cross roads, either the end of America or the beginning. Similarly, we are at either the end of the world or the beginning. Say what? At least that is what the Obama administration would have you believe, crisis is power. Arrogance is power. Hold the boat… things are not that bad. We are just suffering under poor and irrational leadership. The amount of natural resource in the U.S. has not changed…. Ditto the world. The air is cleaner, the people better educated …(not in the U.S. but in other countries).


One of my favorite John Wooden quotes is never confuse activity with achievement. This is true for every organization in the world. Unfortunately the United States has been favoring activity and crucifying achievement.

The green agenda… the end of productive industries carries with it tons of processes (activity). The Obama agenda … the end of productive individuals carries with it tons of processes (activity).  Are we really better off without productive industries and people? What is the point of winning the lottery if you have to give everything you won to those who lost?

OK. Let’s keep this simple … not confusing activity for achievement.

Green agenda… Immediately fund the planting of trees and leafy plants. Every young person prior to attending higher academia or entering the work force will spend 1 year of volunteer labor reforesting the globe, 10 Billion trees by 2020. Problem solved.

Now for rebuilding the United States and thereby the world; let us focus on cause and correction.

Problem: Housing market has been destroyed

Congress (2007) and their Government Sponsored Entities(GSEs) collapsed the housing market of the U.S. by changing the lending rules after people had invested in low interest teaser loans.  They did this without grandfathering existing loans.   Purposefully to create a crisis to forward their agenda (activity).

Solution:

It is virtually impossible to have too much housing supply in a country with a growing population. In order to restore the housing market, we need to re-enable purchasing. We should have a national housing sale. Price is irrelevant, sell the mortgage but at reduced interest rate. If the mortgage is greater than the price of the house, sell the financing. Works in the auto industry, it will work for houses. Market will recover quickly.  Interest cost to the government is near zero.

Problem financial insolvency of the government (state(s), federal)

Congress (2007) and the Obama administration has traded big government for productive industries and individuals. This is unsustainable.

It is virtually impossible to have too little government in a country with highly productive individuals and industries. As the number of failed businesses and individuals increases, the requirement for government services also seems to increase. Unfortunately, this is a false relationship. The greater the investment in government, the less resources become available for private investment.  Obama is simply creating an "Idiocracy".

Solution:

Revert government budgets to 2006 levels. Phase in government layoffs slowly over the course of a year. Change the tax basis for the country as follows:

1) Make the Bush tax cuts permanent except for the upper rate.

2) Eliminate all payroll taxes (not the income tax)

3) Phase in a federal sales tax not a VAT.

This broadens the tax basis(illegal workers and wealthy), while reducing the incentive to ship jobs overseas. It also directly benefits small and large business.