Conservatives spend alot of time complaining and criticizing President Barack Obama and his economic policies. Liberals claim we don't offer a detailed alternative plan.
Well here's a plan for the Republican Party. If they 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 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.
AFP PHOTO/Jewel Samad
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.
National Income Tax Vacation
President 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 over $2 trillion (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 private sector jobs (as opposed to government jobs that cost taxpayers money).
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 President Reagan.
Aaron Lee holds a sign advertising income tax services for Liberty Tax Service on April 14, 2014 in San Francisco, California. Tax preparers are helping last minute tax filers ahead of the April 15th deadline to file state and federal income taxes. The Internal Revenue Service is expecting an estimated 35 million returns in the week leading up to the deadline. Justin Sullivan/Getty Images
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 half of Obama’s 2009 stimulus. The updated cost for Obama's stimulus plan is $2.5 trillion. How come no one asked where Obama would find the money for his stimulus?
This economy is even worse than President 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.
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 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 startups. That’s how you jumpstart a middle class jobs explosion.
Jumpstart Job Creation With an "Angel Investors Tax Credit"
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 startup. We need to encourage more startups.
Under this "Angel Investors Tax Credit" 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 startups.
Job seekers wait in line at Kennedy-King College to attend a job fair hosted by the city of Chicago on November 9, 2012 in Chicago, Illinois. Thousands of people started to line up at 3AM for the job fair which did not begin until 9AM. When the doors opened the line was about a half-mile long. (Photo by Scott Olson/Getty Images)
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 startups.
What do all new businesses need? Employees.
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 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 U.S. Financial experts estimate American corporations have over $2 trillion parked offshore because of high U.S. corporate tax rates.
An illuminated Burger King sign is seen on August 25, 2014 in Washington, DC. Fast-food chain Burger King bought Canadian chain Tim Hortons in an acquisition that will make it the world's third largest in the fast-food sector. As part of the deal, Burger King will move its headquarters to Canada where the company would benefit from Canada's more favorable tax code. AFP PHOTO/Mandel NGAN
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’s 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.
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 Enviornmental Protection Agency. 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.
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 U.S. 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 had in the sand, tax it and reap the benefits. By the way, this is how you create even more jobs.
Return to the Gold Standard
The dollar has lost about 98 percent of its buying power since 1913, when the Federal Reserve 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.”
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.
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.
A fence along the Otay Mesa border near San Diego, California. (AFP/Getty Images)
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. No one will leave their homes out of fear.
The border is the key to all of this. Seal it to save America’s economy from destruction.
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.
That’s a short outline of my plan to save this economy and country, direct from the pages of my book, “The Murder of The Middle Class.” We need HOPE, not just criticism. This plan is all about hope.
America is in decline, but it’s still savable. We can turn it around. There is still time, but the window is small. This plan will create 20 million new jobs quickly- just as Reagan’s tax cuts did in the 1980’s.
It restores economic freedom. It rewards entrepreneurship. It stimulates small business job creation. It limits the power of government - just as the Constitution demands. It puts the power back in the hands of the people. Most importantly, it will restore the American Dream for middle class Americans.
This answers all the liberal critics who claim all conservatives or Libertarians do is complain and criticize. They ask “What’s your plan?”
Well here it is. Now shut up and get out of the way. You’ve done enough damage. You caused enough chaos, crisis and pain. It’s time to let the responsible adults take over.
Wayne’s latest book is: “The Murder of the Middle Class.” Wayne Allyn Root is a former Libertarian Vice Presidential nominee, successful entrepreneur, small business defender, business speaker, Capital Evangelist, and media personality – appearing on over 5,000 interviews in the past five years. Wayne’s web site: ROOTforAmerica.com.
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