Doing Homework

Since no one likes to do homework while they are on vacation, I thought I would do my patriotic duty and do Obama's homework for him. BTW, I don't care if Obama is on vacation. He should get a vaca like anyone else. From a political point of view his timing and location are a bit odd, but it's his vacation, I don't care where he goes. If I were in charge of his public persona though, I would have suggested a working staycation to show solidarity with those who are having a tough time in the current economy, but it is his vacation, he can do whatever he wants, I really don't care However, since he is on vacation, the least I can do is prepare a jobs plan for him to present after labor day. If he actually does this, he will be elected to a second term, without question. So it would be my suggestion that he take this plan, turn it into a speech and get ready for his second term.

A job creating plan does not have to cost a dime, so there is no stimulus, no presents for corporations, and no need for infusions of foreign cash. Here we go:

1) Overhaul the tax code - I am sick and tired of social engineering through the tax code and it doesn't work, it is a drag on the economy. Governments trying to pick winners and losers in the market and the economy through tax policy has been an abject failure and has left us a tax code that is far too complicated and ineffective.

Single individual tax rate of 17.5% (I have some flexibility on the optimal rate) for every dollar earned above the poverty rate. No deductions for anything, no loopholes for anyone. No real estate interest rate deduction, no earned income tax credit, no nothing, no deductions, no credit. Everyone can figure out their tax liability with a pencil and paper and 5 minutes of time.

Corporate tax rate of 15%. No loopholes, no deductions. Income on foreign operations and investments can be repatriated at 15%. A rush of cash will come back to the US for investment in the business.

1% national sales tax on everything except food and medicine. This will make sure that everyone is vested in and paying into funding government. The more you consume, the more you pay into the system. Any attempt to raise this rate will require a 3/4 majority of both houses of congress.

2) Repeal Obamacare. Face it, this is bad legislation adding to both the uncertainty and cost of doing business. It has been scored by the CBO as adding a trillion dollars to the national debt over the next ten years. The plan is a loser and an example of bad government. Admit it and set about fixing the problem. Stat over. Get non-partisan instustry experts to weigh in. Commit to a market-based system of competition across the national landscape. No protections for healthcare providers within state lines. Everyone providing healthcare must compete nationally.

3) Raise social security and medicare benefit eligibility to 70 years old for anyone under 50. People are living longer and pulling way more out of these programs than they paid in. That's wrong. Raise the age at which folks start to pull benefit out of the system, which will grab a few more years of contributions and maybe we can start getting these runaway programs under control. I would also start some level of means testing that would reduce benefits to wealthy retirees. The wealthy retirees would still receive a reduced level of benefits - they have to, they are owed. They paid into the system for years, they are entitled to at least the amount of their payments into the system plus interest compounded at the risk free rate over the course of their working careers. However, if I have done well and have a very good retirement income, I should not pull more out of these soon-to-be insolvent systems than I paid in. I could have several levels of testing to try to best align people's retirement incomes with the funds they paid into the system over their working careers.

4) Corporate welfare stops. Farm subsidies, ethanol subsidies, manipulating commodity prices, tax breaks for pet industries, etc. The government should not be in the business of picking winners and subsidizing industry it deems more worthy than others. Business will either succeed or fail on its own. That is what free markets are about. Let them do their jobs.

5) Foster domestic energy development. Drill off the coasts, in Alaska, and in the Gulf of Mexico. Harvest oil shale and coal. Authoize new nukes and refining plants. We can be energy independent in 10 years. Get it done by letting business go to work creating our own energy. If solar & wind energy is part of that equation, great, I hope it does well, but it has to compete with the next best alternative. No intervention by the government to provide an advantage of one energy source over another. Imagine the rush of investment and hiring in an energy sector that is unfettered by capricious and punitive government regulation.

There you go. A plan that will spur economic growth and make every ones April 15th a lot less stressful. It will drive up tax revenues and hiring by creating an environment in which capital and investment are rewarded which will result in massive investments in business which will result in very brisk hiring.

More jobs, more tax revenues, and far less debt. Seems like a no-brainer to me. I want Obama to enjoy his vacation, so I did his homework for him. I don't expect any thanks, but I am looking forward to participating in the coming economic boom.