Republicans and Democrats still can't agree on how to fix the economy. As a result, nothing gets done so the Federal Reserve, caught in the middle, ends up doing the only thing they can do, print currency and then lend it to banks for free and use it to buy up the bad mortgage backed securities (MBS) the banks themselves created. The result is that unemployment is still high, the housing market is still lethargic, and home prices are finally going up, but slowly.
The problem I see is that the majority of the politicians are self-serving to their own party so that they can get re-elected verses focusing on the final objective. That objective being to support an economic environment that allows for companies to grow in both financial and employee numbers while protecting the common good of the employees by expecting companies to provide a safe work environment at fare wages. Government has no other duty to perform in this situation at this time.
To accomplish this there is no one simple answer, but there is a list of simple solutions that, when put together, will see results. You will see things that might have benefited you in the past taken away, but you will see others things that will benefit you in the future. Before going any further you must remove yourself from the equation and let all of it sink in.
First, put all the pre-Clinton financial regulations back in place. They were there for what should be, now, obvious reasons. To put it simply, protect the markets up-side bias. The principle of supply and demand will take care of the rest.
Second, simplify the income tax code. A single tax rate, no matter the number, is all that is needed to get those who earn more to pay more. For example, 10% of $100,000 ($10,000) is already 10 times more than 10% of $10,000 ($1,000). Let me put this simply. There is only one reason you shouldn't pay tax. You didn't earn any income to start with.
Third, all taxes should be collected by the state you live in. The states responsibility is to pay their tax to the union. That is the constitutional way according to the general interpretation of the line, "no taxation without representation." A copy of your taxes should go to both the state and federal IRS as a matter of accountability and auditing between your state and the union so that national expenses that serve and protect the public good can get paid, like defence, infrastructure, and routine medical services (antibiotics and band-aids to vaccinations and x-rays; emergency surgery for accidents that created a life-n-death situation is an exception that should also be included). The rest is up to the individual to pay for. Get your own insurance or suffer the consequences. Government medical care is something that should be, and will have to be, weaned off of.
Forth, only charge import tax on non-raw materials. Raw materials still require man hours to make into a final product. And because of that, jobs will have to be created here in the US. Also, the tax can then be collected from the new worker as income tax. As regards to exports, I currently have no solution but I am open to suggestions.
Fifth, and probably one of the most important for individuals and tax revenue, is to increase minimum wage. If lower income wage earners have more income they will be less inclined to need assistance and more inclined to spend more. They see what the "Jones'" have next door, and by default they will try to "keep up." They will be able to feed themselves and still have enough to buy more.
Sixth, and only as minimum wage gets increased, restrict entitlements slowly but drastically. This includes "Obamacare." Now that the "playing field" is leveled, there is incentive not to be sitting at home collecting a check. People will know that if they want something they will have to work for it. People will know that they will have to be responsible for themselves.
The answers to these problems are literally elementary. Essentially, everything is fair and balanced. Everyone pays a fair tax for every dollar they earn. Companies are allowed to hire knowing that their only burden is to pay a fair wage to their employees and all employees know they are to be responsible for themselves. If you think I say this as some self-entitled rich person with a silver spoon in my mouth, you'd be wrong. As of this writing I'm a lower middle-class wage earner that paid, in 2011, an effective tax rate of around 15.3%.
That is my opinion, you can take it or leave it.
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