Friday, November 30, 2012

My “fiscal cliff” deal

My “fiscal cliff” deal
Robert A. Hall

This may need some tweaking, of course. This will be fairly painful, of course (for me, too). But not nearly as painful as the coming fiscal, economic, social and political collapse. Republicans offer to vote for this if President Obama and 90% of House and Senate Democrats agree to support it:

  • Tax rates on those making over $250k go to Clinton era levels, indexed for inflation.
  • Tax rates on those making under $250k go to 50% of Clinton era levels, indexed for inflation. (They want the “Clinton Golden Years” back? This is a step towards it.)
  • Everyone with taxable income must pay at least 2% income tax regardless of how little their income is.
  • Eliminate deductions on mortgage interest for second homes, or any homes costing over $2 million. (Index this for the housing market in various areas. $2 million in NYC is different than Kansas City.)
  • Eliminate all business welfare subsidies, especially green corporate cronyism.
  • Eliminate ethanol subsidies, reduce all farm subsidies by 20% a year for next five years.
  • The “Death Tax” is not restored, to allow farms and businesses to be passed on intact.
  • Tax rates on Capital Gains stay the same to encourage job-creating investment.
  • The Social Security tax rate goes back to what it was, to postpone the SS collapse.
  • A “tax holiday” is declared for six months for any company that repatriates overseas income and invests it in expansion in the US, on that money only, of course.
  • Establish “territorial taxation” for countries invested overseas, as many countries, most recently Germany, have successfully done.
  • Put a two-year moratorium on new regulations on business
  • Social Security and Medicare age is raised by one year for those under 60, by two years for those under 55, by three years for those under 45 and by four years for those under 35.
  • Eliminate Social Security and Medicare for those with assets over $3 million.
  • Allow people to pay extra on the Medicare payment to doctors to get the care they want. Allow doctors to bill Medicare Patients with assets over $2 million their full fees.
  • Anyone convicted of Medicare Fraud, Social Security Fraud or SSDI fraud to serve at least two years in prison and be permanently barred from participation in the programs.
  • Establish a commission to review Social security Disability and Food Stamps with the power to tighten the programs. They are out of control.
  • Pass a national “right to work” law to encourage job expansion.
  • Federal pensions converted from now on to defined contribution plan equal to average contribution of private 401k/IRA contributions. This would be for new employees, but for current employees if the courts would allow.
  • Reduce federal non-defense workforce by 5% a year for next three years.
  • Raises for federal employees limited to average of private sector raises.
  • Defund Planned Parenthood, all Arts and public media, all non-medical or non-defense research.
  • Get government out of the student loan business.
  • Shut down Fanny Mae and Freddie Mac within one year, sell assets to the private sector.
  • Defund the UN 50%. Cut foreign aid 50%. Aid allies only.
  • Across the board 5% cut for the military, $10% for everything else that is non-entitlement or debt service, including federal salaries.
  • Elected officials to get no better benefits and retirement plan than other public employees.
  • Cut aid to higher education 20%. Restore 10% to universities that cut administrative staff and fluff in half within one year and lower tuition costs by at least 10%.
  • Any person with net assets of over a million dollars who publically says taxes are too low will be assessed a 5% personal tax on all assets. (Okay, I know that’s not constitutional, so can’t be done. Scratch it. But I still like the idea. A special tax on anyone who has married a rich widow sounds good too!)
Let me review the Federal Budget, and I’ll have more ideas….

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