Jobs and Taxation
I believe we need private sector jobs to save this country. I also believe that the main focus has to be creating manufacturing jobs in this country again. This is for two reasons. First off, one in three students who enter the education system in the United Sates never graduates from high school. It has always been this way, but these people were able to get manufacturing jobs to support themselves. With real unemployment more like 17.1% or 26.4 million people, this becomes more imperative as more and more of these people will be out of work. The second reason is that a Nation that manufactures nothing is completely dependant on the rest of the world. People forget that manufacturing made this country great. Manufacturing won WWII. Manufacturing made America the preeminent world power after WWII. If you wanted to buy anything after the war you had to buy it from us, because every other industrialized nation had their industry destroyed in the war. We were essentially the only nation with a manufacturing capacity left standing on the planet.
Bringing manufacturing back here to the US is not only about jobs. It is about the security of this Nation. During WWII we mobilized this nations manufacturing capacity and converted it to war production to defeat Germany and Japan. Now we manufacture nothing and American companies are building state of the art manufacturing facilities in places like China. If a similar threat were to arise today there is little we could do. It would take a substantial amount of time to build the infrastructure to meet the demands of a threat on that scale. This would Leave America at the mercy of those who would seek to destroy us. I believe these actions are setting up this Nation to take a back seat and fall from relevance. All while people in this country sit around and let our elected officials make it happen.
The Needs of the Many, Outweigh the Greed of the Few:
Let me show you some statistics. One way to understand the growing gap of income is to compare earnings increases over time by the vast majority of taxpayers - say, everyone in the lower 90 percent - with those at the top, say, in the uppermost 0.01 percent (now about 14,000 households, each with $5.5 million or more in income in 2005).
From 1950 to 1970, for example, for every additional dollar earned by the bottom 90 percent of income earners, those in the top 0.01 percent earned an additional $162, according to the Times analysis. So if your income increased by $1,000 over this time frame, the super rich increased by $162,000. Now that seems very bad, but look at it today, From 1990 to 2002, for every extra dollar earned by those in the bottom 90 percent of income earners, each taxpayer in the top 0.01 percent brought in an extra $18,000. So if you had that same $1,000 earnings increase from 1990 to 2002, the super rich increased by $18 million! Now that is the kind of excessive greed that is ruining this nation. http://www.nytimes.com/2005/06/05/national/class/HYPER-FINAL.html
So, how do we bring the jobs back to America? We need a tax strategy that encourages the creation of American jobs. I believe that the IRS in its current form needs to go away along with its 13 billion dollar budget. We need to simplify the tax code and the whole process. We need to come up with a graduated flat tax with no write offs except a child tax credit of about $500 per child, which puts money in the hands of the people. This is because currently our economy is based on little more then people spending money. So if people don’t have money to spend the whole system falls apart and we are doomed. This is what I came up with and I will explain my logic. I theorize that the toughest job in this country should be President of the United States. That being said, nobody really needs to make more then him and his $400,000 per year. Now to most people, that is a lot of money. With the tax plan that I propose, Anyone making $2 million per year or less will have a reduced tax rate. You can run those numbers for your self to see. http://www.bargaineering.com/articles/federal-income-irs-tax-brackets.html
So lets take a look:
From $0 to $25,000 you get taxed at 5%
From $25,001 to $100,000 you get taxed at 10%
From $100,001 to $200,000 you get taxed at 15%
From $200,001 to $400,000 you get taxed at 20%
From $400,001 to $500,000 you get taxed at 25%
From $500,001 to $1,000,000 you get taxed at 30%
From $1,000,001 to $1,500,000 you get taxed at 40%
From $1,500,001 to $2,000,000 you get taxed at 50%
From $2,000,001 to $3,000,000 you get taxed at 60%
From $3,000,001 to $4,000,000 you get taxed at 75%
$4,000,001 and above you get taxed at 95%
This is not a tax on total income. It is a graduated flat tax and everyone pays the same tax for each segment of earnings. So if you make $5 million a year, you only pay the 95% tax rate on the amount more than $4 million, not on the $5 million total. I know that this seems excessive, but look at my reasoning. It takes away high end greed. CEO’s pay themselves outrageous amounts of money, celebrities, professional athletes and others get paid way too much for what they do. If you eliminate excessive greed, you can start to bring jobs back here. With this plan, the number of people subjected to the highest tax would fit in a minor league baseball stadium. Now compare this to the number of unemployed 26.4 million people, which is more then the population of every state except California. With this tax strategy you will no longer pay Tiger Woods or Michael Jordon $100 million to advertise Nike or Gatorade. Or pay other celebrities huge sums to put their faces on products. All corporations would be forced to trim the bloated salaries of the upper management and bring them more accordingly in line with reasonable pay scales. This will free up huge sums of money that would enable our Nation to bring jobs back here. Money left in the companies to create jobs or build infrastructures will be taxed at 10%. This creates incentive to help rebuild America, settings us back on the right path. Let me give you one example. The three largest investment banks for 2009 paid out 16 Billion in bonuses on top of their already bloated salaries. Now this is just three companies! If you took that 16 Billion and used it to create jobs it would give 400,000 people a job at $40,000 per year. Now multiply that out over all the corporations in this country. You can now see how it is possible to bring jobs back to this country and achieve nearly 100% employment. The net effect of getting these people off of unemployment, putting them back to work and paying taxes is between 500 and 600 billion dollars per year. Only by putting people back to work can we bring down the deficit and save our Nation.
If the upper end tax in this solution seems extreme to you, consider this point. Prior to WWII the upper end tax rate had been 79% of taxable income. After the war this rate increased to 87% of taxable income. This was needed to help pay the cost of the war, and the continued costs of the war in Korea. At the time people were happy to pay these rates, because had we lost the war these people would have had nothing. The economic challenges and massive federal debt we face today are the most dangerous threat to this nation since the great war. The solution may not be popular with all, but needs to be done if we are to be saved.
http://www.ustreas.gov/education/fact-sheets/taxes/ustax.shtml
Bringing manufacturing back here to the US is not only about jobs. It is about the security of this Nation. During WWII we mobilized this nations manufacturing capacity and converted it to war production to defeat Germany and Japan. Now we manufacture nothing and American companies are building state of the art manufacturing facilities in places like China. If a similar threat were to arise today there is little we could do. It would take a substantial amount of time to build the infrastructure to meet the demands of a threat on that scale. This would Leave America at the mercy of those who would seek to destroy us. I believe these actions are setting up this Nation to take a back seat and fall from relevance. All while people in this country sit around and let our elected officials make it happen.
The Needs of the Many, Outweigh the Greed of the Few:
Let me show you some statistics. One way to understand the growing gap of income is to compare earnings increases over time by the vast majority of taxpayers - say, everyone in the lower 90 percent - with those at the top, say, in the uppermost 0.01 percent (now about 14,000 households, each with $5.5 million or more in income in 2005).
From 1950 to 1970, for example, for every additional dollar earned by the bottom 90 percent of income earners, those in the top 0.01 percent earned an additional $162, according to the Times analysis. So if your income increased by $1,000 over this time frame, the super rich increased by $162,000. Now that seems very bad, but look at it today, From 1990 to 2002, for every extra dollar earned by those in the bottom 90 percent of income earners, each taxpayer in the top 0.01 percent brought in an extra $18,000. So if you had that same $1,000 earnings increase from 1990 to 2002, the super rich increased by $18 million! Now that is the kind of excessive greed that is ruining this nation. http://www.nytimes.com/2005/06/05/national/class/HYPER-FINAL.html
So, how do we bring the jobs back to America? We need a tax strategy that encourages the creation of American jobs. I believe that the IRS in its current form needs to go away along with its 13 billion dollar budget. We need to simplify the tax code and the whole process. We need to come up with a graduated flat tax with no write offs except a child tax credit of about $500 per child, which puts money in the hands of the people. This is because currently our economy is based on little more then people spending money. So if people don’t have money to spend the whole system falls apart and we are doomed. This is what I came up with and I will explain my logic. I theorize that the toughest job in this country should be President of the United States. That being said, nobody really needs to make more then him and his $400,000 per year. Now to most people, that is a lot of money. With the tax plan that I propose, Anyone making $2 million per year or less will have a reduced tax rate. You can run those numbers for your self to see. http://www.bargaineering.com/articles/federal-income-irs-tax-brackets.html
So lets take a look:
From $0 to $25,000 you get taxed at 5%
From $25,001 to $100,000 you get taxed at 10%
From $100,001 to $200,000 you get taxed at 15%
From $200,001 to $400,000 you get taxed at 20%
From $400,001 to $500,000 you get taxed at 25%
From $500,001 to $1,000,000 you get taxed at 30%
From $1,000,001 to $1,500,000 you get taxed at 40%
From $1,500,001 to $2,000,000 you get taxed at 50%
From $2,000,001 to $3,000,000 you get taxed at 60%
From $3,000,001 to $4,000,000 you get taxed at 75%
$4,000,001 and above you get taxed at 95%
This is not a tax on total income. It is a graduated flat tax and everyone pays the same tax for each segment of earnings. So if you make $5 million a year, you only pay the 95% tax rate on the amount more than $4 million, not on the $5 million total. I know that this seems excessive, but look at my reasoning. It takes away high end greed. CEO’s pay themselves outrageous amounts of money, celebrities, professional athletes and others get paid way too much for what they do. If you eliminate excessive greed, you can start to bring jobs back here. With this plan, the number of people subjected to the highest tax would fit in a minor league baseball stadium. Now compare this to the number of unemployed 26.4 million people, which is more then the population of every state except California. With this tax strategy you will no longer pay Tiger Woods or Michael Jordon $100 million to advertise Nike or Gatorade. Or pay other celebrities huge sums to put their faces on products. All corporations would be forced to trim the bloated salaries of the upper management and bring them more accordingly in line with reasonable pay scales. This will free up huge sums of money that would enable our Nation to bring jobs back here. Money left in the companies to create jobs or build infrastructures will be taxed at 10%. This creates incentive to help rebuild America, settings us back on the right path. Let me give you one example. The three largest investment banks for 2009 paid out 16 Billion in bonuses on top of their already bloated salaries. Now this is just three companies! If you took that 16 Billion and used it to create jobs it would give 400,000 people a job at $40,000 per year. Now multiply that out over all the corporations in this country. You can now see how it is possible to bring jobs back to this country and achieve nearly 100% employment. The net effect of getting these people off of unemployment, putting them back to work and paying taxes is between 500 and 600 billion dollars per year. Only by putting people back to work can we bring down the deficit and save our Nation.
If the upper end tax in this solution seems extreme to you, consider this point. Prior to WWII the upper end tax rate had been 79% of taxable income. After the war this rate increased to 87% of taxable income. This was needed to help pay the cost of the war, and the continued costs of the war in Korea. At the time people were happy to pay these rates, because had we lost the war these people would have had nothing. The economic challenges and massive federal debt we face today are the most dangerous threat to this nation since the great war. The solution may not be popular with all, but needs to be done if we are to be saved.
http://www.ustreas.gov/education/fact-sheets/taxes/ustax.shtml