Email
Print
SyndicateThe Greatest Economic Stimulus Plan Ever! Part II
By Robert Ringer - Saturday, February 14, 2009
By Wayne Allen Root
As I pointed out in Part I of this article, Obama’s solution for the current economic tsunami is more government spending in the form of bailouts, a massive trillion-dollar economic stimulus package, and “tax cuts” offered to people who never paid taxes in the first place.
What is interesting about this is that it proves we have once again elected a president who is either ignorant of, or oblivious to, the United States Constitution. Nothing in the Constitution authorizes this kind of government intervention in the economy. Which means that Obama’s entire economic game plan is not only unworkable, it’s unconstitutional.
Now, as promised, let me give you my version of an economic stimulus plan that makes sense.
* For openers, I propose giving American taxpayers a one-year Income Tax Vacation.
Of course, Obama and his tax-and-spend friends will howl that we can’t afford it. But keep in mind that individuals in the United States of America pay a total of about $1.3 trillion in income taxes every year. So, as expensive as my idea may sound, it wouldn’t cost much more than Obama’s $1 trillion economic stimulus plan.
It’s also only a tiny fraction of the $7 trillion the federal government has given away in bailout monies to fat-cat corporations and bankers. And it’s far less than the $2 trillion or so that the Federal Reserve has printed up to try to put “liquidity” into the banking system.
Obama wants to take our money away from us, in the form of taxes, and then give it to those he deems worthy (e.g., voters who did not pay taxes) in the form of government checks, so they’re awed by the power and generosity of the government. My plan simply allows the taxpayers to keep all of their own money – for one year – without getting government (or government checks) involved.
With my plan, most of the savings would go to the top 20 percent of earners – the people who own almost all of the businesses in America. They’d pump that money back into their businesses and start new ones – which would translate into millions of new jobs. Obama and his liberal friends wouldn’t like that, because it makes too much sense.
Another thing Obama and his friends wouldn’t like about my Income Tax Vacation is that it would set a precedent. They’d be afraid that if we paid no income taxes for a year, we might start to like it. We might notice how being able to keep that extra money improves our quality of life. We might start to notice that the federal government can survive without it, and maybe we’d demand that income taxes never be reinstated.
My plan, unlike President Obama’s, rewards and incentivizes the American citizens who create most of the jobs, who buy the luxury goods, and who invest in the things that make our economy go and grow: stocks, bonds, real estate, investment property, small business. My plan puts money into their hands - our hands – the hands of people who know what to do with it in order to make more money. Now that’s economic stimulus.
The one-year Income Tax Vacation is the cornerstone of my economic stimulus plan. But that’s not the only idea I have to motivate and stimulate the producers and earners and taxpayers and small-business owners … and actually make money for the government.
* I propose phasing out capital-gains taxes on individual investments over a five-year period.
It would work like this: Buy a piece of America (stocks, bonds, real estate, a small business, etc.), hold that investment for five years, and pay ZERO capital gains taxes on it. In the first year, capital gains earned on your investment would be subject to a 15 percent tax rate. In the second year, the rate would be 10 percent. In the third year, the rate would be 7.5 percent. In the fourth year, it would be 5 percent. And after five years, any profits earned on that investment are yours to keep – tax free.
* I propose the elimination of all capital-gains taxes on investments, dividends, and interest for Americans age fifty-five and older.
The idea is to allow Americans who are entering their retirement years (after a lifetime of hard work) to retire on half the amount of savings they now require, because they would pay no taxes on their assets. With this kind of a reward, think of the trillions of dollars that older Americans would spend on investing in America – knowing that the big payoff (in the form of an inheritance) will be enjoyed by their children and grandchildren.
* I propose a business income-tax cut.
Corporate income tax rates in America are the second-highest in the industrialized world. To remain competitive and encourage big business not to move jobs offshore, we must cut that rate to 20 percent (or lower). Perhaps more important, to encourage the formation and success of small businesses – the economic engine of America – we should lower their rate to 10 percent.
* I propose cutting capital-gains taxes on the profits from the sale of any American’s principle residence to ZERO.
To liberal tax and spenders who scoff at this, it was your hero, Bill Clinton, back in the 1990s, who cut the capital-gains tax on the sale of a principle residence to zero on the first $500,000 of profit. But I’m taking Clinton’s idea a step further: Under my plan, any American who invests (and risks) his or her hard-earned money in a principle residence and holds it for a minimum of two years would get to keep any and all profits.
Pass this law and just watch the housing market – perhaps the most important business in America – explode.
* To encourage the creation of millions of jobs, I propose a $7,500 tax credit for employers.
This credit would goes directly to any employer who hires a full-time employee during the next three years, and it would increase to $10,000 if the person hired was out of work at the time.
* At the end of the one-year Income Tax Vacation that is the basis of my economic-stimulus plan, I propose that we institute a national Reverse Flat Tax.
It’s certainly in the government’s best interest to motivate us to work hard … to build more usinesses … to hire more employees … to make and invest more money. But our tax system has the opposite effect. It punishes success, creativity, ingenuity, and productivity.
My proposed Reverse Flat Tax would solve that problem by having just two rates: 15 percent on all income up to $500,000 per year, and 10 percent on all income above $500,000. In other words, the more money you make, the more you get to keep. How’s that for incentive?
And it’s “fair.” It treats every American same way. No one can complain. There are no losers with my plan. There are only winners … and even bigger winners who take advantage of the opportunity to do better.
For those who argue that my Reverse Flat Tax will not generate enough revenues to cover the government’s expenses, they’re right. But that’s the point. We have to cut government spending dramatically so we can afford to let the American people keep more of their own money. In my new book, The Conscience of a Libertarian: Empowering the Citizen Revolution With God, Guns, Gambling & Tax Cuts, I explain exactly how that can be done.
That’s it – my Economic Stimulus Plan to get America moving and growing again.
Does it cost trillions of dollars? Sure it does. So do all of Obama’s plans. So do all of Congress’s plans. But my plan puts the money directly into the hands of the taxpayers instead of diverting it through the middleman we call “government.” Mine is based on incentivizing all Americans to invest and build. Mine is based on running the federal government (for the first time) like a business.
Modesty aside, mine is THE GREATEST ECONOMIC STIMULUS PLAN EVER!
Wayne Allyn Root was the 2008 Libertarian Vice Presidential candidate. His new book, to be released by John Wiley & Sons in May, is entitled The Conscience of a Libertarian: Empowering the Citizen Revolution With God, Guns, Gambling & Tax Cuts. He also happens to have been Barack Obama’s college classmate (Columbia University Class of ‘83). For more of his views and commentaries, and to watch his many media interviews, please visit his website at: www.ROOTforAmerica.com
You have permission to reprint this article so long as you place the following wording at the end of the article:
Copyright © 2012 Robert Ringer
ROBERT RINGER is a New York Times #1 bestselling author and host of the highly acclaimed Liberty Education Interview Series, which features interviews with top political, economic, and social leaders. He has appeared on Fox News, Fox Business, The Tonight Show, Today, The Dennis Miller Show, Good Morning America, The Lars Larson Show, ABC Nightline, and The Charlie Rose Show, and has been the subject of feature articles in such major publications as Time, People, The Wall Street Journal, Fortune, Barron's, and The New York Times.
To sign up for his one-of-a-kind, pro-liberty e-letter, A Voice of Sanity, Click Here.
Comment Policy: We encourage an open discussion with a wide range of viewpoints. Make your case passionately, but please keep your comments civil and to the point (150 words or less). Obscene, profane, abusive, or off-topic comments will be deleted. Repeat offenders will be blocked.
If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion. Thanks for your participation.
10 Responses to “The Greatest Economic Stimulus Plan Ever! Part II”
Leave a Reply
1500 characters maximum.
[...] Robert Ringer’s Blog added an interesting post today on The Greatest Economic Stimulus Plan Ever! Part IIHere’s a small reading … he things that make our economy go and grow: stocks, bonds, real estate, investment property, small business…. [...]
[...] Robert Ringer added an interesting post today on Robert Ringer#39;s Voice of Sanity BlogHere’s a small readingIt would work like this: Buy a piece of America (stocks, bonds, breal estate/b, a small business, etc.), hold that binvestment/b for five years, and pay ZERO capital gains taxes on it. In the first year, capital gains earned on your b…/b [...]
I recommend people read
“The Hong Kong Tax System
-Key features and lessons for Policy Makers”
http://www.freedomandprosperity.org/Papers/hongkong/hongkong.shtml
I discuss increasing sales taxes and tax cuts on savings and investments on http://www.newgeography.com/users/kenstremsky
Our national debt was less than 1 trillion dollars on January 20, 1981. Our national debt is now more than 10 trillion dollars. We need to be worried about the value of our currency. We need to be worried about very high inflation.
We may end up with very high inflation and very high unemployment if the corporate tax rate is NOT reduced and taxation of savings and investments is NOT reduced.
Congress should eliminate the Federal Reserve or veto many of its decisions.
Congress may want to back our currency with gold, silver, and other commodities.
People may want to support an Amendment to the United States Constitution that allows state governments to “coin Money” – make gold coins and silver coins.
Sincerely,
Ken Stremsky
Thank you Mr. Root and I look forward to reading your book:
The problem is that in order for libertarianism to actually work as a successful and long term system of government, socialism must be uprooted, crushed, and not just left to die, but forced to die. Many have sought socialism’s death by attrition, and if you’re among those with the believe in such means, than you will surely need some type of exogenous event to help you achieve your goals—such as a total breakdown of global financial markets brought on by hyperinflation. And even in a case such as this, socialism is more likely to die in a blood-bath than by the less violent means of attrition.
“What I won’t do is return to the failed theories of the last eight years that got us into this fix in the first place, because those theories have been tested and they have failed. And that’s part of what the election in November was all about.” President Barack Obama speaking on behalf of his stimulus plan.
I agree with the President’s conclusion, that “the theories of the past” (i.e. the governmental conglomeration of socialism, conservatism, democracy, capitalism, market-socialism and statism) have resulted in a complete and total “failure.” For the past eight years, and beyond, America has had what I call, [A Muddle Your Way Through Form Of Government---- A Muddleocracy.] This concept of our government is something that I finished developing 25 years ago after reading one of Mr. Ringers books.
So, no matter what you call it, “compassionate conservatism” for example, it just doesn’t matter, because it all amounts to the same thing—-”failed theories of government.” And if the president thinks he’s going to succeed by replacing one failed theory with another old, tired, and worn-out theory that’s totally out of touch with any sort of reality, than the president is not as smart as he is articulate—- he must be nothing more than a sophist, a true sophist that is patterned after those whom Plato spoke of in Socrates Defense.
Pure socialism, or any of its pestilential variants, should be placed in the hazardous waste pile of ” failed theories” and not even considered as a viable option in any way, shape, or form. And it will take a real man, someone of the same caliber as President Andrew Jackson, to lead America back to the gold standard, abolish the Federal Reserve Bank, deal with an American blood-bath that’s sure to result when the social welfare checks stop arriving, and than lead the rebuilding of libertarian democracy.
Consider this: What happens if socialism collapses or is forcibly ended? What kind of scenario will the President than be facing? One possibility is that extreme pockets of social unrest across America would ensue, including but not limited to: bloody riots, arson, vandalism, looting, widespread panic, and a rapidly expanding homeless population which would include both young and old. Can you imagine the abject poverty and despair if our Muddleocracy unwinds, just like our financial system is currently doing, until it totally collapses?
There are many other possible scenarios we could discuss, some of which have a less violent outcome, but one thing is for sure; right now America is trading in one failed theory for another failed theory which has been repackaged and labeled “change we can believe in.”
It is possible that America can continue to gradually fail and muddle through for the next 100 years. In my opinion, it is much more likely that a climatic collapse will take place sometime within the next 20 years. However, the possibility of a near term collapse, within the next 8 years, is growing.
Mr. Root, finally, let me say that even if you did manage to get your stimulus plan passed into law, do you realize that the wonderful advantages of your tax system would cause a flight of capitol to America from many other countries; thus, causing many other countries around the world to collapse from a lack of capitol which they need to support their own “failed theories” of government. The nature of globalization is one of interdependency between countries. Therefore if you’re truly successful in rebuilding a libertarian democracy in America, I hope you have pondered some of the viciously cruel possibilities, probabilities, and likelihoods that present themselves as a result of your success.
Well, Mr. Ringer, that is a very interesting contribution. It fits very well into the Libertarian thought process. However, living in the land of liberals etc., your proposals will never fly. As a small business owner, I can appreciate your points of view but???? A moritorium on collecting taxes( income and capital gains from both businesses and individuals?) Where is the government going to derive their income in order to carry out their plans for full federal employment? The reverse tax will never fly as you are giving more to the rich than you are to the poor. The only way out for that to work is to literally flood the economy with so much cash that the government will realize their goal of making everybody a millionaire. Then just about all of us would be millionaires only it would take a billion or more to live comfortably. Wait a second, isn’t that just what the government may be doing? As such, we all would be in the 10% tax bracket. Of course, the government then could start applying user fees to living in USA. All activities would be prorated and a user fee would be charged to participate. Of course, all activities would be purely optional including life itself. The results could truly be Orwelian.
It would be nice (and it would add credibility to the editorial comment) if we learned to use the correct words. A PRINCIPLE is a fundamental truth or law basic to other truths. PRINCIPAL pertains to something that is primary. So people don’t have a PRINCIPLE residence. they have a PRINCIPAL residence… and we can propose eliminating capital gains taxes on profits on the sale of their PRINCIPAL (primary, main) residence but not their PRINCIPLE residence (which might be the residence where, while not PRINCIPAL, the receive moral guidance
)
Don’t want to nit-pick, but as a leading author, you have to set the example.
Wayne,
Your “Economic Stimulus Plan” is definitely a giant step in the right direction–although I’m not sure it will satisfy anarcho-capitalists. Still, it would be in their best interest to support it.
Getting the masses and the political establishment to accept your logical arguments is a gargantuan task indeed.
The main reservation I have with one of your revolutionary ideas is a flat tax rate of 15% on all incomes up to $500,000 and 10% on incomes above this. How about 5% flat tax rate on incomes up to $500,000 and 2.5% on incomes above this.
Robert A. Meyer
In my new book, The Conscience of a Libertarian: Empowering the Citizen Revolution With God, Guns, Gambling & Tax Cuts, I explain exactly how that can be done. (Then right below it you mention Wayne Allyn Root’s new book entitled, “Same Title.”) I don’t really care who wrote the book, but just thought I would point out that you are giving credit to two people who seemed to have wrote the same book.
On a second note, I love your articles. Except for one thing. You don’t mention how we can truly and effectively organize ourselves in such a way to change America for the better. we need an answer on how to Overthrow the “Give Me, GIVE ME, Give Me” attitude. Or how to educate the supposedly ‘educated’ of America that Spending more money doesn’t create a more stable society, when the overspending is what caused the lack of stability. Can we truly get rid of congress, and start over with a new breed? Someone who truly is not GREEDY for their own personal benefit, and find someone who is looking for the LONG TERM benefits of the Country? I could go on and on, but this is not my Soap Box. But I am outraged and I want to do something constructively about it. I just don’t know how.
Hello apabon,
I’m sure Mr. Root understands the difference between “PRINCIPAL” and “PRINCIPLE.”
Please understand that a tremendous amount of spelling, grammar, and usage errors occur when busy people like Mr. Root take the time to blog. Even the best writers employ a proof reader.
Just look at my comments: I just proof read my own comments and they are filled with mistakes. For example, I used the word “THAN” when I should have used “THEN.” This is a very stupid mistake, but I can assure you apabon that I do know the difference.
I agree that all of us should strive for a high standard of excellence, that’s why I’m going back to collage, oops, I mean college, to major in English.(Plato believed that the final part of an individuals formal education should take place after the age of fifty; I agree.)
Thank you for pointing out the small mistakes, but don’t you agree that Mr. Root has written a fine blog?
Urine Test — This guy has a point! This was written by a construction worker in Fort McMurray . Read on . . .
>
> I work, they pay me. I pay my taxes, and the government distributes my taxes as it sees fit. In order to earn that pay check, I work on a rig site for a Fort McMurray construction project. At any time I am required to pass a random urine test, with which I have no problem. HOWEVER, what I do have a problem with is the distribution of my taxes to people who don’t have to pass a urine test. Shouldn’t one have to pass a urine test to get a welfare check because I have to pass one to earn it for them? Understand – I have no problem with helping people get back on their feet. I do on the other hand have a problem with helping someone sit on their ass, drink beer and smoke dope. Could you imagine how much money this country would save if people had to pass a urine test to get a public assistance check? If you agree, please pass this along, or simply delete if you don’t. Hope you will pass it along though, because something has to change in this country.
>
>
>
> Construction Worker