I often wonder why we are so quick to criticize without providing a solution. So here goes. I will dispense with discussing how we arrived at this point in the crisis and will provide the frame-work and recommendations for fixing what ails America.
- Eliminate lobbyist – they buy political power by influencing weak politicians, soon to become wealthy politicians. This becomes a contagion as others in power seek to cash in on the free-flowing benefits. It also attracts other wealth seeking individuals who are more interested in wealth and power than serving their country.
- Reform American Tort Law – too much power rests with the Lawyers and Law firms and the cost to the economy of enriching lawyers and their firms is crippling. Settlements must be capped and the American justice system reformed.
- Reform Wall Street – the center of Capitalism has been corrupted. Greed and Politics have distorted reality. Regulators and Wall Street must have barriers placed between them and they cannot be breached. Regulators have not done their job because of political interference and enticements from Wall Street.
- Regulators must stop settling with Wall Street when crimes are committed. All to often, when serious crimes are committed, the regulators settles for cash payments with no admission of wrong doing or guilt. This is the single most destructive crime on Wall Street and if it is not stopped, the crime will continue because no one is ever held accountable. Simply pay a fine and get on to fleecing America and the world.
- Term limits on the Presidency is 5 years – you get one term to fix what ails America and have every incentive to do what is in America’s best interests. If you succeed, you will be well rewarded after you leave office because your talent and knowledge will be in high demand. End political expediency and passing the buck onto a successor.
- Banks and Wall Street will be separated – Banks on a Global basis will adhere to tax reporting all transaction and must know the source and identity of their customers. They will share information and communicate amongst each other to identify suspicious transactions. Banks that do not adhere to the new requirements will not be allowed to exist.
- Derivatives – full regulation. Must understand who is the counter party and what are the true risks. This is one of the most important sectors which could and will bring down the entire global financial system.
- Restrict Hedge Funds and High Frequency Trading (HFT’s) – The Hedge funds gamble with other peoples money. They are over paid and take on excessive risk creating distortions. They must divulge their trades with complete transparency or face extinction. HFT’s and Hedge Funds create no value to the overall economy and profits should be taxed as income or implement a trading tax on transactions. Of course they can move offshore, but investors are still subject to report and pay the trading tax in their home countries.
Fixing the Economy
- The American tax code is a mess. The amount of special tax breaks and incentives is killing the economy and requires too much regulation and policing. Eliminate the deductions and implement a flat tax payable by all. If you earn over $250,000 you pay 40% tax. If you earn between $150,000 – $250,000 you pay 35% tax …..
- Implement a Value Added Tax ( VAT) – tax consumption with a simple VAT – Exempt food. Those who can afford to spend, will pay the most.
- Implement a Tax Free Savings Account with annual limits on contributions – encourage savings
- Institute a Gas tax – increase taxes on oil, create incentives to use other sustainable or cleaner burning fuels. End the Oil lobbying once and for all.
- Natural Gas – reduce the dependency on Oil and look for alternate solutions like a retrofit of America with Natural Gas infrastructure. Start with trucks, then move to cars. America has enormous supplies of untapped clean burning natural gas. This will replace a % of oil importation saving 100’s of billions of dollars that are otherwise being shipped offshore to the oil countries. This will replace a % of oil use and save the economy billions. Why? The energy out ratio of Gas : Oil is 6:1….. yet the cost of Gas to Oil is 35:1. There is more value released into the economy with a Gas infrastructure program.
- Incentivize Americans to work and create jobs – do not hand out free money so people can sit at home a do nothing. If you are unemployed and collecting, you will work for the Government in some capacity.
- Balance the budget – it will balance itself if the following recommendations are implemented. American citizens who do not report their entire income and assets face forfeiture and or a windfall tax at death. Heirs are second in line behind the Government if your benefactors is in violation of US laws with regards to tax reporting and evasion. There is a one time amnesty to all citizens and corporations after which the full force of the law will take over.
Failure to come to terms with reality will lead to a future of hardship and pain. It can be stopped if the World Awakens in time… all it takes is a few good people to step forward. A new party will emerge that will capture the hearts and dreams of many.
Welcome to the E-Party !