From Bob Livingston’s Personal Liberty newsletter:
Hi. I’m Wayne Allyn Root for Personal Liberty. And do I have a plan for the Republican Party — if the Republicans want to win elections by a landslide, if they want to save the economy and if they want to create 20 million middle-class jobs almost overnight.
Back in 1994, a Contract with America won Republicans control of Congress. In my latest book, “The Murder of the Middle Class,” I lay out the Middle-Class Contract with America that will help do it again in 2014 and 2016. If only the GOP would listen, we could turn around this terrible economy, save the middle class and return America to greatness.
Republicans need to do more than be against Barack Obama. They need to present their vision and a detailed plan for how to reinvigorate the economy and create millions of high-paying, middle-class jobs. Here is the 10-point plan that can stop this long-term decline and dysfunction and once again make America’s middle class the greatest in the world. A Middle-Class Contract with America created by a small-business owner (that’s me) can do it again.
This is a common-sense contract to protect, save and serve America’s middle class. This “contract” has only three goals: Support, stimulate and reward middle-class job creation.
Start with a national income tax vacation. Ronald Reagan already proved a radical plan that gives power (and money) back to the people will turn even the worst recession since the Great Depression into the biggest economic expansion in world history. Reagan saved America from economic ruin by cutting taxes from 70 percent to 28 percent. This idea is Reagan on steroids! Obama wasted more than $2 trillion dollars (the updated cost) on a “stimulus to nowhere.” He gambled on big government and lost. Six years later, there is still no recovery for small business or middle-class jobs.
Like Reagan, I’m betting on the private sector. Government cannot save us from this Obama Great Depression. Only the taxpayers, investors and small business owners can save us. So my version of “stimulus” goes to the group of citizens that pay the taxes and create the jobs.
My national income tax vacation lets taxpayers take a vacation from income taxes and keep 100 percent of their income for one year. Sit back and watch the greatest economic explosion in world history. What will they do with their windfall? Start businesses, build businesses, expand businesses. Buy stocks, homes, autos. And go on a consumer-spending binge. And, of course, an orgy of spending by the citizens creates real jobs (as opposed to spending by government).
This plan puts the money in the hands of the financial first responders, not government. The people who pay taxes and create jobs by starting businesses will save America — just as they did under Reagan. Millions of jobs will be created (and they won’t be part-time, low-wage jobs flipping burgers). Obama’s belief in government has failed the middle class. This plan puts the power in the hands of entrepreneurs and taxpayers.
Critics will ask, “How do we pay for it?” The total cost of my income tax vacation is $1.2 trillion (that’s all the personal income taxes in America for one year). That’s less than Obama’s 2009 stimulus. How come no one asked where Obama would find the money for his stimulus?
This economy is even worse than Jimmy Carter’s economy. So we need a radical game changer. We need Reagan squared. This is how you save America: by inspiring and rewarding all the people who actually pay taxes, instead of punishing them and stealing their money to reward the freeloaders with their hands out. Obama proved that idea is a disaster.
Next step: Return from the one-year national income tax vacation to the 0-15-0 tax plan. The country needs a game changer. My 0-15-0 tax plan is exactly that. It is modeled after Hong Kong, the greatest booming economy in the world (with 3.5 percent unemployment). We return from the one-year personal income tax vacation (the “0” in the 0-15-0) with a 15 percent flat tax.
It’s important to note that Hong Kong allows deductions for mortgage and charitable deductions. It works. Copy it. You hear me, GOP? Stop trying to eliminate mortgage and charitable deductions with a flat tax. That’s just plain stupid. The economy depends on real estate and home ownership. Churches and charities depend on deductibility of donations. Hong Kong’s booming economy proves a flat tax works with both of those deductions included.
Secondly, Hong Kong also has a zero capital gains tax. So does our No. 1 competitor in the world: China. We must match China or lose market share. A zero capital gains tax will motivate an explosion in investments and start-ups. That’s how you jump-start a middle-class jobs explosion.
The third plank of my plan: Jump-start job creation with an Angel Investors Tax Deduction. Two of every three new jobs are created by small business. A majority of these new jobs are created during the first three years of a new business start-up. We need to encourage more start-ups. I propose offering an Angel Investors Tax Deduction. Under my plan, investors receive a dollar-for-dollar tax credit for up to 50 percent of their income tax bill (up to $25,000) for investments in new business start-ups. This isn’t for millionaires. It’s tailor-made just for middle-class investors. Over a decade, any middle-class American can invest $25,000 per year; and after 10 years, they save $250,000 from the clutches of the IRS. If any of those businesses succeed, middle-class taxpayers can build a million-dollar nest egg for retirement. More importantly, millions of jobs will be created with all this money flowing into business start-ups. What do all new businesses need? Employees.
Plank No. 4: Create a reverse inversion. Inversion is when U.S. companies run away from America because we have the highest corporate taxes in the industrialized world. I want to cut the corporate tax rate to a flat 15 percent, so companies across the globe will want to practice reverse inversion by coming to America — not running away.
Secondly, encourage U.S. companies to bring all their offshore money back into the United States. Financial experts estimate American corporations have more than $2 trillion parked offshore because of high U.S. corporate tax rates. My plan allows companies to bring their foreign earnings back to America with only a small 10 percent tax/penalty. Companies will rush to take advantage, thereby instantly producing about $200 billion in new tax revenues to be applied to debt reduction. Better yet, the remaining $1.8 trillion dollars will be pumped into the U.S. economy.
Third, model the great (and booming) state of Texas and pass a national Loser Pays Law. You want corporations to bring back jobs from overseas? Reduce frivolous lawsuits and watch what happens. Anyone want to bet? Do these three things and every company in the world will want to move to America. Watch millions of jobs be on-shored, instead of offshored.
Plank No. 5: We need an Endangered Humans Protection Act. The average energy job in Texas pays about $150,000 per year. These are the kind of jobs that can save the American middle class. Because of technological advances, America is in the middle of an energy revolution. If only the Obama administration would take the shackles off, America could become the energy capital of the world.
How do we create millions of great jobs? Approve Keystone XL, increase energy production, encourage more fracking and clean coal, and ease regulations so we can export more of America’s No. 1 product to our allies in Europe. That’s how we defeat Russia, too. We become the energy supplier to the world.
Oh, and kill the EPA. Today. As in, this minute.
The energy industry has more of a direct impact on middle class Americans than any other issue. Creating high-paying energy jobs would lower unemployment, boost the tax base, lower the debt and dramatically lower everyone’s energy bills, leading to increased consumer spending. The middle class is saved by $150,000 energy jobs. It’s destroyed by job-killing green energy. The party that offers that vision sweeps to landslide victory.
Plank No. 6: Legalize, regulate and tax “sins” like marijuana and online gambling. This is what we do in Nevada, and the result is we are able to afford zero state income tax and zero business income tax. We should be replicating this model through the United States because it works. Are you listening, GOP? Get out of our bedrooms, as well as our boardrooms. Let people do what they want. Stop sticking your head in the sand, tax it and reap the benefits. By the way, this is how you create even more jobs.
Plank No. 7: America desperately needs a gold standard. The dollar has lost in the neighborhood of 98 percent of its buying power since 1913 (since the Fed was founded). We need a gold standard to back the dollar with something real and tangible. This prevents politicians from spending us into bankruptcy by making spending promises with money we don’t have. It also reduces the likelihood of a debt crisis, dollar collapse or the loss of world reserve currency status.
Plank No. 8: Repeal and replace Obamacare with a health freedom plan. The economy cannot improve without the repeal of Obamacare. Health insurance premiums are up more since Obamacare started than in the eight previous years combined. Heck, they are up 88 percent in liberal, Obama-loving California alone. This is bankrupting middle-class consumers and destroying our economy. Obamacare is also a middle-class, high-wage-job killer. There can be no good-paying middle-class jobs until the regulations and taxes of Obamacare are repealed. Period. Obamacare has to go or nothing else will work.
Plank No. 9: Seal the border and reform immigration policy. After the border is sealed with a virtual wall (protected by thousands of drones), create a path to permanent residency (with work permits) — but never citizenship for any illegal immigrant. They’ve lost the right to vote by breaking the law.
Our wide-open border is leading to disaster for the economy. Millions of poor, desperate immigrants arriving here to demand welfare and food stamps will bankrupt our economy and force massive tax increases. But a terrorist attack or Ebola pandemic on U.S. soil is even worse- and both can happen tomorrow because the border is wide-open. One terrorist attack and this already vulnerable economy will drop off a cliff. One Ebola pandemic and commerce will grind to a halt. People won’t leave their homes out of fear. The border is the key to all of this. Seal it to save America’s economy from destruction.
Plank No. 10: Follow the U.S. Constitution to limit the power of Congress and all branches of the federal government. This starts with term limits. I believe all politicians should be limited to two terms: one term in office and one term in prison.