The Economic Solution is Easy Stupid

The economic solution is easy.

We have to increase tax revenue without increasing middle class taxes.  We have to increase the number of jobs in the USA.  We have to make our products more competative with foreign products.  We have to lower the deficit and the trade imbalance.  We have to decrease the government payroll while increasing the private sector payroll.

We have to start by thinking that the economic policies of the last twenty years were not only wrong, but dead wrong – 180 degree wrong.  We do NOT have to make things more effectively or at a lower cost.

We start by changing the way taxes are collected.  We end corporate taxes on all manufacturing job producing corporations except those with windfall profits such as those made by the oil companies.   We recover the lost tax revenue with a sales tax that is placed equally on foreign and domestically made products.  Since the sales tax is collected on imported goods, we actually increase our tax revenue while decreasing the cost of our products overseas.

The income taxes have to be adjusted back to the way they were during the Eisenhower and Reagan years for the top 5%.  We have to reduce deficit spending to about 20%.

If this isn’t sufficient, we have to increase the number of people working in the private sector by draconian measures, if necessary.

But first things first.  A sales tax with a corresponding decrease in corporate taxes for those corportions competing with imports is the first step.  Picking up the tax revenue by increasing the taxes to the wealthiest five percent is the second step.

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