RESTARTING THE ENGINE OF CAPITALISM IS UP TO THE CAPITALISTS


I read this post at Blogs4victory about what needs to be done to get America’s economy going again and I was taken aback by how general and dangerous it was. here’s the upshot:

 

My personal feeling is that three of the most critical things that have to happen are (1) a national energy plan that promotes both energy independence and abundant, economical energy; (2) revamping our tax structure to make it simpler, broader based, more equitable and, most important, predictable over a reasonably lengthy period of time; and (3) revamp government regulations from top to bottom. In a sentence, we need to get away from a system that penalizes success and rewards failure to one that does the exactly the opposite.

Taking this point by point I will begin with the suggestion that the United States of America cannot be energy self sufficient if that means relying on oil from the United States alone. The nation needs 21 million bbl per day to keep the nation running. America has become a net exporter of refined petroleum products and still the price of crude oil has not dropped below $90 per bbl in quite some time. For conservatives this might be a disconnect for economists it isn’t at all. America needs to put an honest effort inot weaning itself not only off fossil fuels but of plastics as well. create jobs in industries that use wood and metal and you would have a fine start. Move toward a greener economy and you will be out of this oily mess in ten years.

The taxation question is a dog whistle to be sure. I can solve this issue with the stroke of a pen. Make the top tax rate for individuals making more than 1 million per year at 45%. The next rate would be set at 35 percent for those making more than $750,000. Those making more than $350,000 the rate would be 30%. For earners making more than 150,000 a year the rate would be 25%. Those making more than $50,000 would be taxed at a 15% rate and finally those making less than $50,000 a year would be taxed at a 10% rate. Problem solved.

This year if you make $50,000 per year your tax rate is 25%, if you make $150,000 it is 28%. Both of these groups would get tax relief because they are the ones that need it. Even a guy making $749,999 a year would get a 5% tax savings. Only those in the highest income tax bracket would see and increase of 10%.

And on government regulation this I can get on board with. We need more regulation in hedge funds, in health care in the environment and in a myriad of other places so America will actually be a place where workers will want to live and grow families.

Qu’ul cuda praedex nihil!

Carlton Pryor, D.S.V.E., O.Q.H.[Econ.].
Lead Economist
TED-OG
27 Ravenshade 2 AS

4 Responses to “RESTARTING THE ENGINE OF CAPITALISM IS UP TO THE CAPITALISTS”

  1. Since when does a family making $50,000 pay $4,000 in SS tax? SS tax is 4.2% which would be about $2100. Also, last I knew the child tax credit was $1,000 per child not $2,000 per child. Your numbers, (which I noticed you adjusted in the written report here from the TV report) are just not accurate even if the bottom line is similar.

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