I have a plan to reduce our nation’s deficit and debt while improving our economy at the same time, and I’d like if someone took a look at it and gave me some feedback and maybe some suggestions.
Here is a plan that should probably cut the deficit and the debt by $9 trillion over 12 years, allowing us to hopefully get a surplus by at least FY 2013.
1. Deficit Reduction Package over 12 years:
Cut defense by $800 billion. Prioritize spending to match the investments made by the Chinese, install cyber-defense system to defend American projects and info. Close 144 bases (mostly in Europe and US)= $40 billion a year. Invest more in drones. Cap aircraft carriers at 13. Target waste in private contracting.
$1.2 trillion in savings from entitlement reform: Raise cap to 90% of taxable income; preserve tax on $3.5 million estate; progressive indexing; adjust COLA, etc.
Remove Bush tax cuts except $1.2 trillion for middle/lower class earners= $3.2-3.6 trillion savings. Repeal all of Bush tax cuts in 2015 but save deductions for marriage, house, children, etc.
Gradually increase taxes on the highest income bracket to 45.4% from 39.6% after repeal of Bush tax cuts=$900 billion.
Reform tax code, eliminate loopholes and most tax expenditures. Add a value-added tax at about 4-5% if it won’t stifle growth or overburden taxpayers.
Lower corporate tax rate to competitive 17.5% BUT no loopholes and ALL corporations pay 17.5%. NO TAX REFUNDS for corporations.
Eliminate $100 billion in subsidies for oil/gas, ethanol, and farms. Use $60 billion for deficit and the rest for incentives in clean energy.
Reform government departments, agencies. Place Dept. of Homeland Security under Defense Department.
Cut $2.1 trillion from the rest of discretionary spending EXCEPT NASA and Education.
Wealth tax to discourage hoarding of money.
Total savings=~$9 trillion over 12 years including lower interest.
2. Economic Plan (paid for by a 4% surtax on people who make over $1 million).
$60 billion in infrastructure bank.
$40 billion in incentives for clean energy, plus increases in subsidies and new projects to construct solar power plants, wind farms, nuclear power plants, hydroelectric dams, etc.
100% duty on goods from nations that manipulate trade markets (China, Russia, etc).
$50 billion for innovation.
Education reform along lines of Obey Porter model. Also investing into Head Start education program. Merit-based pay, $2,000 per student, and revamp of building conditions and technology. Follow example of nations beating us with new teaching techniques.
Immigration reform. Sponsor immigration of those excelling in science, math, technology, etc and offer them government jobs if they can’t get them in the private sector.
$200 billion in plan to rebuild America using underemployed and unemployed people.
$50 billion to upgrade U.S. airports, refineries, oil rigs, and harbors.
Help housing market by speeding up foreclosure time, destroying old houses for new projects, writing off underwater mortgages, and having the feds and state and local govts buy houses and teaming up with private sector to rent out homes and split profits until market fully recovers (nice revenue stream; less foreclosures; win-win).
Reinstate Glass-Steagall Act.
Reform Wall Street.
Full employment policies.
Living wages and higher minimum wage.
Low-cost higher education.
Employee Ownership Programs.
Creation of a Pacific trade zone area open to all nations THAT WILL OBEY TRADE LAWS. China will not be initially invited until they cooperate with the WTO on trade fraud.
Decrease inequality by promoting education, strong safety nets for the unemployed, and pro-growth policies from both the left AND the right.
$50 billion for domestic energy exploration.
$40 billion for Department of Tourism and 200,000 embassy workers to speed up time to get a visa to visit the US. Increase tourism, create jobs, and allow people to spend money in America.
Broad national regulatory overview: cut wasteful regulations in some sectors (energy infrastructure, etc) and install new regulations in others (financial markets, housing, etc).
New regulation: all companies must increase their employees salaries at least once every two to five years and must index for inflation (allows middle and lower class income to increase steadily).
Follow People’s Budget economic rebooting package and tax reform onhttp://grijalva.house.gov/uploads/The_CPC_FY2012_Budget.pdf
Post Office reform. Eliminate health benefit payment over 75 years; buyout 100,000 employees; invest in online shipping and deliveries; eliminate all transfers of money to federal accounts until Post Office balance sheet is balanced; increase cost of stamps by $.03; temporary 2% pay cut and 15% decrease in administrative salaries.