The solution to economic growth is a mystery to many voters because they don’t understand, or have been deliberately misled about the political environment that encourages prosperity for all. The relationship between risk and reward determines what a business will do, and not do. If the potential reward for starting or growing a business is limited, or not available, then the risk will not be taken by businesses and entrepreneurs. Opportunity, jobs, and economic prosperity are subject to government tax and regulatory policy. When a government overtaxes and over regulates, the economy will suffer recession, or mediocre economic performance…even in a supposedly free country. When a government consistently spends more than it’s income, the economic impact will be devastating. Without economic growth, America will never be able to create enough jobs, reduce the debt, fund welfare programs, fund Social Security and Medicare, finance roads, bridges and other infrastructure projects, and provide for the common defense.
Tax Reduction and Regulation Reform are the key incentive catalysts necessary to stimulate economic growth. Reform is also desperately needed to address fairness. Tax policy must ensure that all people pay their fair share of taxes. When everyone pays, the people will hold politicians accountable for wasteful spending. Socialist demagogues use deceptive tax policy to buy the votes of a large percentage of the population that don’t pay any income taxes. Under the Obama Administration, the federal government has adopted punitive tax and regulatory policies that retard economic growth, and limit opportunity for all Americans. Government has become the enemy of the free enterprise system. Current government policies make it more costly for businesses to hire employees, and make it unattractive for potential employees to take a low paying job because they can receive more money on welfare. These anti-growth policies are bankrupting the country. As a result, the federal debt has doubled over the last eight years. The federal debt is increasing by over two billion dollars every day! Because of anemic economic growth, almost fifty percent of American workers do not pay income taxes and this number is increasing every year. Job creation in inner cities, is almost nonexistent, due to increases in the minimum wage, unsafe streets, a failing education system, and lack of parental guidance. Higher paying jobs are becoming scarce due to government mandates like ObamaCare that add so much cost to businesses that they only hire part-time employees. Is it any wonder that businesses are relocating out of the country? The risk-reward incentives for economic growth have been turned upside down.
When I was a teenager, I was told that if I worked hard and stayed in school, I could achieve the American Dream. Back then, jobs were plentiful. Entry level pay was low, but a hard worker, willing to learn, could increase his pay and opportunity over time. Back then, government was business friendly. After all, government was a silent partner in a business’s success because of taxes on business profits.
That economic environment doesn’t exist today. It didn’t happen overnight, and the decline was caused by politicians of both parties over the last 50 years. But, Obama’s socialist policies have doubled, and redoubled the assault on business, and have almost destroyed the American Dream.
There are four immediate steps that must be taken to become an economic powerhouse:  Dramatically lower tax rates for all businesses and individuals, and enact a sliding scale of lower rates depending on income, but with the goal that everyone pays federal income taxes. The maximum rate should be 15%, and the bottom rate should be 1%. A reformed tax policy must include a requirement that any change in rates will affect all rates. i.e.- if the top rate is increased to 16%, then the bottom rate must be increased to 2%. This will prevent politicians from using the tax code to buy votes. The tax code needs to be simplified by eliminating all special interest deductions, exemptions, and the earned income tax credit [no more tax refunds for people who don’t pay taxes]. The tax code must be an incentive for investment in the US. This will eliminate the need for a US company to save taxes by moving to another country, and allow them to reinvest foreign earnings in the US without incurring double taxation.  Review and reform all laws and regulations from all federal agencies that add costs to American businesses.  Consolidate, and closely manage all federal welfare programs: so that waste and fraud is eliminated; to ensure that the combined social safety net is high enough to alleviate poverty; but not so high as to discourage going back to work.  Provide incentives to federal employees to cut federal spending by the amount needed to balance the budget each year. Federal spending is inherently wasteful because politicians are spending other people’s money. There is no oversight…no one is minding the store…there are no incentives to operate efficiently. The overwhelming majority of waste is due to programs that should not exist…the government has expanded into many areas that government has no business being in.
None of these steps are being proposed by the democratic candidates for President. Bernie Sanders and Hillary Clinton are proposing policies that will raise taxes and increase punitive regulations on businesses and entrepreneurs…proposing the opposite of what needs to be done.
There will be those who say that the numbers don’t add up. They are looking at the problem the wrong way. Tax revenues will dramatically increase when businesses are given the incentives to locate, and expand in America. Rather than adding numbers up, the naysayers need to look at subtracting numbers down. Out-of-control Federal spending must be cut. Subsidies and cost killing mandates must be eliminated. Congress needs to stop the practice of annual, across-the-board automatic increases due to inflation, and do the job of overseeing every expenditure, every year. Some agencies need to be eliminated entirely. The list of potential cost savings is endless.
There will be those that say this is “just a tax cut for the rich”. Those that say this are greedy politicians that are willing to suck the lifeblood out of freedom in order to gain political power. Other than the War on Terror, the corrupt Socialist “war on the rich” is possibly the greatest threat to America’s freedom and the freedom that drives the American Dream. America became great by allowing every American, the freedom, and the opportunity to become wealthy, even fabulously rich. The Declaration of Independence, and the Constitution of the United States form the foundation of freedom. The idea that anyone can become rich in America is the basis for America’s greatness…and it is this greatness that has lifted millions out of poverty into a standard of living that is the envy of the world.
President Reagan initiated a twenty year economic boom with a maximum tax rate of 28%. That won’t be enough to grow the economy today. The maximum rate has to be lower to attract investors from all over the world. The maximum rate of 15% should apply to both businesses and individuals. But a minimum rate is also necessary to be fair. No more voting for deceptive socialist politicians that try to buy votes with anti-freedom redistribution schemes. This is the one fair way to protect the American Dream.