A short list of US fiscal and monetary policies I've adopted under the general argument of "democratic capitalism" and in context of monetary sovereignty:
Taxes
1. Reduce or eliminate regressive consumption and payroll taxes, while retaining land and severance taxes.
2. Raise the federal standard deduction to $100k.
3. End corporate taxes by treating dividends as income.
Spending
4. Extend large, systemic federal grants to fund every state, county and city government in the nation for public infrastructure development and employment.
5. Extend citizen benefits to include health insurance, full pensions and free education.
Banking
6. Separate our banking system from the financial sector, by prohibiting the resale of mortgages and other controls, and lift the cap on FDIC to insure all deposits.
7. Set the FFR at 1/4%, carve it in stone and leave it there.
That's my list.
How does "treating dividends as income" end corporate taxes? Should it say "and" instead of "by"?
ReplyDeleteIt's mostly a shift in trade policy.
DeleteWhere are the numbers to balance this policy? Thanks
ReplyDeleteI've been analyzing them over the past couple years while forming the policies themselves. State and local government spending is about 1.4 trillion. The whole thing needs to be gone over front to back.
DeleteThis is just a policy outline. I'll build supporting data around this model going forward.
The idea is to balance the economy, not the federal budget. The only fear we would have is inflation, and I really don't see that as an actual problem-- but it needs addressed.
Delete"JUSTALUCKYFOOL"
ReplyDeleteTaxes
1.Please clarify:What is the reason for taxation ?
1. Reduce or eliminate regressive consumption and payroll taxes, while retaining land and severance taxes.
2. Why do you assume....consumption taxes are regressive ?
3. Why ............................payroll taxes are regressive? ......................
2. Raise the federal standard deduction to $100k.
4. single,? ...and joint, perhaps $200k ?
3. End corporate taxes by treating dividends as income.
5. This would be unfair-allowing a corp a total tax free structure while having "the people" only a $100K deduction is
an absolute NO. It's like saying, ok to gain all the money and we will only pay taxes on what you distribute.
How about we keep it simple. ALL corporate revenue is taxed at 6% . One line tax form. Pay the tax
and if you believe you should have a deduction: file a request.
All of this needs to be clarified, in detail. But to try and answer your question briefly:
DeleteReasons for taxation: you'll find writing on this from New Economic Perspectives or any MMT academic site, fully referenced. In short-- to give value to the national currency, and to reduce aggregate demand as a hedge against inflation.
Consumption taxes are regressive, by definition. They impede sales and really cause a pain in the ass for businesses. It would be nice to eliminate them.
Details of 100k-- raise the deduction, beyond that I don't care if the rate is flat, progressive or curly-Q
Treating dividends as income would solve the "offshore investor" nonsense and lift a huge burden from small and medium businesses. They don't account for much of federal revenues anyway. It would also incentivize reinvestment rather than short-term profit.
I agree, that was the hardest policy for me to rationalize, but it's actually a better plan-- as a foreign policy as well as domestic.