Posted on 08/28/2010 7:34:30 PM PDT by VaConstitution
Subtitled: A Pro-Free Enterprise Tax & Law Structure & An Opportunity Presented by Existing Violations of US Constitution Art.I Sect.1
The power to tax is the power to destroy..
Seems like we want to be careful about what we let our government destroy. Sort of an enumerated powers applicable to all levels of government might be useful at least as a thinking tool. It seems that social engineering is always divisive, toxic and provides opportunities for corruption. Social engineering by taxes, tax breaks, and subsidy is no different but more so.
The removal of that propensity towards corruption is worthy but has hard to quantify costs and benefits.
Saving the work-life being wasted in the industry having propensity towards corruption is easier to measure.
A) I wonder how much our productivity and production would increase if 99.5% of tax accountants, tax lawyers and tax bureaucrats where doing something actually productive rather than gaming the system. . . my eyeball survey of certain parking lots guesses that there are 3 persons so employed for every farmer. If farmers are still 3% of workers then it seems we could have 9% more real labor force time, perhaps equivalent to 9% increase in real GDP, just by blowing that stuff into some useful truly useful employment.
B) I wonder how much of that other 91% of the labor forces time would be available for doing actually good things if we could get our tax collection system that right and simple. Lets call that yield 2% of the labor force time, estimate it as a 2% increase in real GDP.
The misspent work-lives and other resources caused by tax distortions on the market I cannot even begin to measure directly.
My guesstimates on components, and proxies for components, that compose that economic waste created by tax distorted markets varied so wildly that I have tentatively settled for the proposition that this waste my not be as significant as I thought. The reality check on the high guesstimates would be the cost of economic dislocation that would become apparent if the tax distortion was to suddenly stop. Just like stopping a speeding car the cost of the speeding is dependent on the rate of the stopping.
If the above 11% of GDP {9% in A) + 2% in B)=11%} was shifted from frothy illusory GDP to real substantial GDP by legislating a five to ten year phase out of the corruption & waste inducing tax driven distortion then both the stability of the law and the certainty of a tax distortion sunset would encourage those persons in that 11% of GDP to change jobs to something more productive at an orderly rate. Likewise the business and investment tax driven distortions would also be removed at so orderly a rate that the market is not traumatized. That practically free 11% increase in our real GDP increased the base of all future growth by that amount - a drag laden 3% economic growth in GDP would be able to produce a drag pared 3.33% economic growth in GDP.
Let us assume that our country suddenly recognizes that all delegations of legislative authority embodied in the Code of Federal Regulation is UNCONSTITUTIONAL & VOID as is ALL the past legislation that delegated that authority.
Now the IRS has no legal standing and no employment short of felony in the personal capacity of IRS employees.
Now Constitutional replacement legislation is needed immediately. By Constitutional congressional model legislation authorizing interstate compact the states are authorized and required to collect federal sales taxes on all new product sales at a country-wide uniform rate. Existing tax breaks would be implemented by tax refund. Tax refunds are limited to citizens, legal aliens and citizen businesses. The tax is made as an effective savings account for the relatively impecuniary.
There are other details to smooth the transition and other taxes to eliminate and roll into one collection mechanism for all local, state and federal domestic taxes but they need not be raised now.
NOW we have no less that an 11% increase in our REAL GDP.
RELATED BUSINESS RISK REDUCTION And we reduce that amount of government induced risk that business face by removing the CFR and its capricious enforcement under possible criminal penalty that was used to shakedown business and punish those out of political favor.
Those portions of the federal executive branch, like the EPA, that also fall when the CFR is discovered to be largely UNCONSTITUTIONAL & VOID. Constitutional replacement legislation is needed immediately By Constitutional congressional model legislation authorizing interstate compact the states are authorized and required to implement country-wide uniform if they wish for their citizens to have remedy to violations by citizens in other states.
Reducing businesses risk premium on investment that they need to cover the government caprice induced risk to every new investment will have benefit every year. State enforcement of interstate compacts rather than a capricious mix of state and federal enforcement will likely cut the full cost of every new investment by 5%, reduce the lead time required to embrace a business opportunity by 80%, and reduce the required total annual return on investment to justify an investment by some 3% per year. Those are just my eye ball estimates - what are your estimates?
Maybe we can dig our way out of the current mess we are in! We just need to say NO! to BHO’s crew & RINOs before we can honestly say YES! to our children and grandchildren
We can dig our way out when we dig through to China.
This article really says nothing.
From what I have read we are actually beyond the point of no return. All we can do now is wait for the train crash.
My proposal ~ exempt Republicans from taxes. Tax only Democrats.
Yup, its all over. Just waiting for the collapse.
And no where to run. We will take down the entire world economy with us.
All because the Democrats couldn’t stop spending and the Republicans were too weak (and often complicit) to stop them.
And from the ashes will arise a world government.
http://www.freerepublic.com/focus/news/2578337/posts?page=23#23
The US economy will come roaring back.
That is where this is headed.
Remember the warnings from the John Birch Society? They were right!
“From what I have read we are actually beyond the point of no return. All we can do now is wait for the train crash.”
To avoid the crash we must become fiscally responsible today, not some future year. The federal government living within its means today would look something like this:
Total federal receipts $2.1 trillion. Assume no tax increases.
Interest on the national debt is $400 billion. This leaves $1.7 trillion.
Assume the next priority is to start paying down the national debt. We can wipe out the debt in approximately 50 years with payments of $200 billion per year. This leaves $1.5 billion.
National defense cost is approximately $700 billion. We can no longer afford our foreign entanglements. Bring the troops home from around the world and save about $200 billion. Cut another $100 billion from the budget leaving $400 billion. China, the next largest military spender spends $100 billion. At $400 billion for defense we have $1.1 trillion left. Plus bringing our troops home would allow them to be stationed along the southern border where they could stop the 2 million people crossing the border illegally.
Next, Social Security and Medicare. Combined they cost slightly over $1.1 trillion. In order to balance the budget, and fund any other government programs, Social Security and Medicare will have to be cut. This means the retirement age will have to increase, COLA’s ended, copays on Medicare raised, disability insurance dramatically reduced or eliminated. Plus cuts to benefits. A 20% cut in Social Security and Medicare spending will leave $200 billion to fund the rest of the federal government.
In an ideal world, entire departments will be eliminated and their functions assumed by state and local governments or ended. Candidates for elimination include the Departments of Education, Labor, Energy, Commerce, Agriculture, Health and Human Services, and HUD. Off budget agencies such as REA, TVA, Fannie Mae, Freddie Mac should be privatized. Amtrak, the Post Office, and General Motors should also be privatized.
Many government agencies could be funded through user fees in order to remove the burden from the taxpayer - FAA, Army Corps of Engineers, Customs Service, National Forest Service.
Other agencies should be dramatically downsized. For example budget for the Department of State in 2010 was $16.4 billion. In 2002 it was $8.2 billion. What is State doing that we need to double spending in 8 years? Do we need embassies in every country in the world? This budget should be slashed to 2002 levels or below.
If we don’t take draconian action to bring spending in line with revenues, we do face a crash that will bring down the nation and destroy what is left of our liberty.
A lot of elderly and welfare recipients will have to die in order for us to become financially solvent.
With our current debt plus unfunded liabilities we are looking a true debt of about $120 trillion dollars. No matter what we do we can’t grow our way out of that nor can we cut enough. We are beyond the point of return and this train will crash no matter how much we desire it not to do so. This crash will bring down every country in the world. Think of our financial system as a hollowed out deck of cards that has had its concrete foundation steadily replaced with a sand one. When the time is right the powers-that-be will bring it down and it won’t take much.
I don’t know anything about the JBS but from my own independent study we probably agree.
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