Hopefully, with the energy of the TEA Party descending upon our nation’s capitol, an economic paradigm pivot will offer genuine solutions for the benefit of the masses, not just politicians and the politically connected.

Economic Paradigm Pivot!

By A.J. Cameron
Thursday, January 6, 2011

President Obama has repeatedly and artfully said that his Number 1 focus is jobs, but has he ever really said he is focused upon increasing the number of employed. He campaigned on ‘Hope & Change,’ and look at what we’ve been subjected! His actions with Stealth-Care and drilling for much needed oil belie his ‘teleprompted’ rhetoric. Let’s call his bluff!

One of the definitions of insanity is doing the same thing repeatedly, and expecting a different result. It is obvious that until Federal government spending is restrained, as a nation, we have zero chance of pulling out of the downward spiral imposed upon us by our Federal government. Once there are enough emotionally mature individuals in both Houses of Congress to act in the best interest of the country in stopping the irrational spending, we can take the next step, a paradigm pivot to generate revenues without stripping the financial gears of individual taxpayers.

Step two; we need to reduce corporate taxes radically, while maintaining current individual tax rates for the long-term, not just two years. Our patchwork of tax law stifles long-term economic freedom and security. Taxes, bureaucratic fees, oppressive regulations and debt are to a free-flowing economy what plaque and cholesterol are to a healthy heart; they constrict the arteries of commerce, leading to layoffs, reduced tax revenues, and the wealthy shutting off taxable activities and/or relocating to tax-friendlier locales.

As Mr. George Will stated, corporations don’t pay taxes; they collect taxes. Any taxes ‘paid’ by corporations are added to the cost of a product or service to offset assessed taxes. There are several benefits of reducing corporate taxes. First, costs for products and services would drop, making them more affordable for a wider range of consumers, increasing sales taxes. Secondly, this should help domestic businesses to improve their competitiveness against imports within our borders, without the need for tariffs. Thirdly, and of even greater importance, more businesses could retain jobs here, employing more taxpayers, instead of moving jobs offshore in an effort to remain being competitive within the global economy. Ironically, this would generate increased taxes from the success of domestic businesses and increased employment.

Step three; we need to rethink the whole ‘tax-the-rich-because-they-have-money’ idiocy. Do the math; in looking at the numbers, you realize that even if the wealthy were to be stripped of their ‘earned income,’ with the decades of profligate spending by members of both parties in both Houses of Congress to buy votes (en-route to amassing personal wealth and power), we are generations away from paying their bill. Trust in government has been decimated over the years, so Congress needs to come to the table with the intention of re-establishing trust through beneficial and innovative solutions. This means promoting legislation that benefits the masses, not splinters us in an effort to woe special interest voting blocks and campaign contributions. We haven’t acted as a democratic republic for quite some time. United we stand, divided we fall, and we need to break our fall!

With nearly 50% of the population not paying income taxes, and some people actually extracting money from tax revenues collected, the numbers demand that more people pay taxes, not the hiking of tax-rates of current taxpayers. With the rising number of ‘working poor’ and a shrinking middle class, we can’t increase tax rates with our current system on these individuals, and history has proven that the wealthy will halt taxable enterprises when tax rates increase. There is a saying that ‘a rising tide lifts all boats.’ Instead of the miserly tax incentives promoted by the Obama regime, we need bold ideas! Businesses, especially small businesses and entrepreneurs, need to have sufficient, long-term incentives to generate the growth and employment tidal wave needed to replenish our dry-hole economy.

The only solution is for more people to make more money. There needs to be a common sense trade-off within our tax system. The challenge is that, in the free enterprise system, businesses thrive when they can limit expenses, including the number of employees and the overall employee compensation packages, allowing for the rewarding of risk-taking and generating a profit. Businesses are started to generate a profit, not to hire employees to placate politicians who have made a complete mess of our economy. Instead of punishing those who have prospered within our free-enterprise system, government needs to work in concert with business in ensuring that the American Dream is available to anyone and everyone who seeks to take advantage of their good fortune of living within our country.

Shouldn’t Congress champion legislation that encourages employment and responsible wages? Members of Congress do it for themselves and their staffs! By replacing excessive taxes and onerous regulation and fees with tangible, long-term tax credits and inducements for employment and wage enhancement incentives, our economic arteries will be reopened. More people will be elevated from a government subsistence status or zero-sum income tax position into an income taxpayer status. These new income taxpayers will have a vested interest in a system that approximates ‘fairness’ vs. the current system that encourages the ‘have-nots’ and union members to champion the raiding of the ‘haves’ who are essential for the economic vitality of our economy.

Do those in elective office have the ingenuity to revise our corporate tax codes to encourage employment and growth, and the integrity to implement these revisions? The spotlight is on the White House and both Houses of Congress to deliver. Hopefully, with the energy of the TEA Party descending upon our nation’s capitol, an economic paradigm pivot will offer genuine solutions for the benefit of the masses, not just politicians and the politically connected.

http://canadafreepress.com/index.php/article/31838