Lower the tax burden on the middle class and eliminate the tax burden of the retired fixed income people. Sit back and watch the economy grow.
just a side question. Do the welfare lifers go into retirement or do they continue to “earn” at the same rate until they die?
“Lower the tax burden . . .
Priming the pump by lowering taxes no longer works due to globalization and outsourcing. Pre 1990 when the federal government lowered tax rates or gave a one time tax break, the middle class and working poor use that unexpected shot of money to buy consumer products made in US factories. The washing machines, lawn mowers, toasters, furniture, bed linens, shoes, televisions, and other products bought caused demand to rise in the US factories producing the products. As demand rose, companies increased employment to accommodate higher production. Downstream in the supply chain rising factory production increased demand for steel, electronic parts, machine tools, plastics, chemicals, and other raw materials. The higher demand for end products resulted in greater employment through the entire supply chain. This is why the Reagan tax cuts of the 1980’s worked so well.
In the 1990’s lower tariffs resulted in companies moving production abroad instead of investing capital in domestic factories and jobs. George W. Bush’s tax reductions didn’t have the economic impact of the Reagan tax cuts because the money wasn’t spent in the US. Mexican and Asian companies experienced the benefit of the tax breaks. Foreign workers got jobs, not Americans.
The answer is to raise tariffs on imports, lower corporate taxes on profits earned from US production, and a realign our education system to focus on training people to work in 21st century manufacturing. Let higher tariffs fund the lower tax rates. Why shouldn’t Chinese and Mexican factories pay for access to the US market? Why should US factories pay high taxes and regulatory burdens to the US government while foreign government subsidized foreign factories get a free ride to compete with US factories and workers?
US workers, and the US economy benefited from the trade laws in place before 1990. Since then production, jobs and capital have left the US and the standard of living for the average American family has declined.
Until we address the trade issue decent paying jobs will be increasingly hard to find.