Forum Post: Economics, Stimulus, Taxes, Jobs, Regulations, Revolving Door, Specific Action Items to Consider
Posted 5 years ago on Feb. 12, 2012, 10:41 p.m. EST by Middleaged
This content is user submitted and not an official statement
--- For Comments --- Does anyone want to add Reform, or Economic Stimulus Ideas ---
A. Problem Area Taxes are Lower for Rich People:
1) Captial Gains, 2) Dividends, 3) Carried Interest, 4) Deferred Wages,
B. Problem Area Taxes for Social Security, Medicare not paid by the Rich (These social programs are under funded).
I was just reading this article: http://www.truth-out.org/have-super-rich-seceded-united-states/1326127151
C. Problem Area Most People Don't Work although women did join the work force and increase the number of people competing for jobs
1) Children, 2) Elderly, 3) Infirm, 4) Spouses at home
D. Problem Area The Alternative minimum Tax doesn't work for Rich who still have "Loop Holes", Pay "None Wage Tax Rate", and No Defintion of "effective tax rate" except for the tax in the IRS tax booklet.
E. Problem Area Congress Spends Funds that We Don't Have.
1) War over 500 Mile from this Country is Questionable, 2) There is No Trust Fund for War Spending, 3) Taxpayer's Borrow Money for War, 4) Much of Spending is a transfer of Taxpayer money to industry, 5) Too much Spending for Prisons for nonviolent crime, 6) Over 1600 Federal Subsidies, 7) Social Security Funds Stolen for War Funding.
F. Problem Area Banks Are Predatory, engage in dishonest and Criminogenic activity, One Idea: "Banks should become a Utility" managed like a the water complany. It seems like a good idea, because they function to lend money and with Fractional Reserves - they are really making money "out of thin air" (transparency and regulation goes without saying if banks become a "Utility").
G. Problem Area Borrowed Money:
1)Which brings up another point that MMT (Modern Monetary Theory) has brought up. And that is that if we are the government, we own the treasury, why don't we create money and institute monetary policy, and why should we pay back money borrowed, or ... even borrow money to begin with???? Unless we borrow or lend to foreign entities we can create money without borrowing it.
2) Monetary Policy is all about making sure there is enough money in the system. If businesses can be born, and grow...if people can borrow and use credit,... then the system works. But today with dishonest deals driving out honest deals ... like the No Document Mortgages, packed and resold within hours or days. Money supply should be tied to changes in population to prevent money from getting tight as it is now. Small businesses can't get loans today (I am told). And people that want to refinance homes can't refinance.
3) Monetary Policy is supposed to work for both Main Street and Wall Street. And it has nothing to do with "pulling yourself up by your bootstraps". Today the money system is Broke. And the Economists in charge are "Neoliberalist".
here is a link I looked at posted by notaneoliberal http://www.commondreams.org/view/2011/04/02-5
H. Problem Area Job Creation is Really Creating an Environment For Starting Small Businesses (Small Businesses are the heart of the USA, employ the most people, and manufacture the most products - it is a myth that big giant corporations are the heart of the USA).
How About Some Strategy Ideas for Thought:
1) Get rid of the Central Bank (since we know they are in bed wtih the people that they are supposed to Regulate, the Revolving Door from the Treasury to Big Banks to the Federal Reserve proves this is one big "Club"). No one knows why the FED was created in secrecy without congress anyway.
2) Break Up All Banks that are too big to fail with Antitrust Laws (separate commercial banks, investment banks, and savings banks).
3) Stop Foreign War over 500 Miles from any one US State.
4) Stop asking the Governent to Create Jobs.
5) Stop asking Businesses to Create Jobs.
6) Fully Fund Social Security and put money behind a Firewall (that is why we called it a "Trust").
7) Extend Unemployment benefits another year
8) Bring Army Troops back to permanent stations in the USA from Japan, Korea, and Germany. This means building (Stimulating) more housing, barracks, training facilites, and maintenance facilities. It also WILL Stimulate the US Economy as their money is spent in the US.
9) Create Incentive programs in K-12 through small Grants of $2000 - $4000, and in Colleges and Tech Training Schools of $5000 - $6000 to test new inventions, create contests in science, agricultural labs, greenhouses, etc.
10) Close the Department of Education since it has failed.
11) End the War on Drugs and transfer DEA agents to other departments since the mission has failed (the SEC needs help).
12) Create some kind of Minimum Tax on Progressive Scale without Loop Holes as a "kind of alternative minimum tax" that applies to the Rich and to Capital Gains, Dividends, Carrying Fees. This will get Lawyers, Tax Lawyers, Accountants, Tax Accountants into other economic activities that could be helpful to the GDP and may have a multiplier effect on the economy (hopefully we can get more financial managers into manufacturing also). This may also reduce the number of IRS employees needed to review tax forms. Outlaw Deferred Wages since they erode tax base and obstruct visability of Executive Wages Earned (nontransparent).
13) Overturn NAFTA and CAFTA laws. Go to a Tariff system on imports (start at 1%).
14) Stimulate manufacturing with "Economics Free Zones" in states and cities across the USA which would remove barriors to businesses, reduced taxes, reduced liscenses, reduced certifcation requirements, no unions, reduced sales tax, reduced production tax, reduced capitol investment tax, maybe customers would not have to pay sales taxes either.
15) Stimulate manufacturing by providing small grants to trade schools and to students toward teaching them about business and how to start a manufacturing enterprise (laboratories, agricultural plots, energy and alternative energy testing projects, chemistry projects, hazardous waste control technology).
16) Stimulate manufacturing by identifying banks that would lend to new businesses, establish new small business federal loan programs at federal loan rate of 6% or 8%, identify technologies that will be trends in the future and will be focus of federal loan program (waste disposal, recycling, energy, autos, mass transportation).
17) Stimulate business creation with additional public works programs, and energy technology programs grants, loans, reduced production tax, sales tax, capitol investment tax, for businesses with capitolization below $10 Million Dollars that will produce energy or manufacture capitol equipment utilized in the energy industry.
18) Make Health Care Portable across State Lines ending monopolistic Insurance Programs.
19) Make all Student Loan Interest Rates go down to either 6% or 8% to end the predatory rates from financial organizations who get their money for free or nearly free (Fractional Reserve Lending) and who now use profits to Lobby Congress.
20) Break up the TV/Cable Monopoly with Antitrust Law. No media owner/corporation/cabal should have the power to advertise talking points and call it news.
21) Outlaw Lobbying Congress and Gift Giving to Congress (i.e. free hotels, free dinners, free vacations, free conventions, free plane rides). And accepting gifts/contributions from foreign entities by congress is treason. Campaign contributions shall be set at the same limit for all US Citizens, but corporations and PACs shall not contribute to congressmen/women. Congress shall raise money through books and speaking, but can't sell books to PACs or corporations or some rich entity.
22) SEC must be bolstered with full backing of US Treasury if it is to face big banks in court to discourage criminogenic behavior.
23) SEC probably needs manpower of 200 additional agents to investigate Fraud and Criminogenic environment.
24) Corporations need to be rated not only on their risky behavior, and for hiring unqualified personnel to create mortgage loans or other financial instruments, but also for the amount of leverage they use and lack of reserves they keep on hand (transparency is key).
25) Corporations need to be Rated for all consumers, investors, or potential business partners with regard to transparency and independent audits of Off Balance Sheet Transactions. GAAP rules are the goal for US Businesses (transparency).
26) Politicians should be Rated and Evaluated when they intervene/pressure Federal regulatory offices and agencies. For Instance it is said that congress interfered with the IRS audits of Rich people in the past. The real danger is that political pressure can allow regulations to be bent without the politician knowing the full context of the US regulations or the Lobbying Entity's Activities (Context is crucial to all US systems).
27) Make Banks become "Utilities" like water or electric with profit controls, leverage controls (less than 10 to 1), fractional reseve controls (minimum on hand assets), Interest Rate controls (Student Loans at either 6% or 8%, Small Business Loans either 6% or 8%), Off Balance Sheet transaction controls (to make explicite what is allowed and what is prohibited), and transparency of credentials for bank loan officers and mortgage specialist.
28) End the Revolving Door Between Federal Regulators and the Industries they Regulate. There are rules that exist that prevent government employees from working in industry jobs for a period of 5 years under certain conditions and circumstances. Disclosure Forms can be used to keep up on job changes of government employees that want to move from the Treasury or another agency to work for the entity or industry they were sworn to regulate (this forces people to chose their careers and stick to their decisions).