Monday , 17 June 2024

2016 Presidential Candidates: Which (if any) Would Introduce These Initiatives (if any) to Revive Economic Growth & Prosperity In America?

The dismal news of 0.2% GDP growth for the first quarter only confirmed that the U.S. is in the midst of its slowest recovery in half a century from an economic crisis. Our view is that the primary factors behind the growth slowdown are an increasingly intrusive regulatory environment, a confusing and punitive tax scheme, and lack of certainty over healthcare costs. Here are some recommended solutions.

The above edited excerpts have been taken from a thought-provoking article* by John Mauldin & Stephen Moore as posted on under the title Cleaning Out The Attic. It can be read in its entirety HERE.

  1. Streamline the federal bureaucracy.
    • The President, with some flexibility, should require each agency to reduce the number of regulations under its purview by 20%, at the rate of 5% a year.
    • Then Congress should pass a sunset law for the remaining regulations, requiring them to be reviewed at some point in order to be maintained.
  2. Simplify and flatten the income tax.
    • Make the individual income rate 20% (at most) for all income over $50,000, with no deductions for anything.
    • Reduce the corporate tax to 15%, again eliminating all deductions other than what is allowed by standard accounting practice. No perks, no special benefits.
    • Further, tax foreign corporate income at 5%–10%, and let companies bring it back home to invest here.
  3. Replace the payroll tax with a business transfer tax of 15%.
    • Companies would pay tax on their gross receipts, minus allowable expenses in the conduct of producing goods and services.
    • The tax would be rebated at the border, so it would encourage domestic production and be popular with union workers since it would make US products more competitive internationally.
  4. Provide certainty by keeping tax rates low through a tax-limitation constitutional amendment that would require that:
    • Future tax increases to be passed by 60% of the Congress, in combination with a balanced-budget amendment and
    • phasing them in over four to five years
  5. Roll back the regulatory state.
    • Start with the Food and Drug Administration by streamlining the process so healthcare can keep up with research, thereby lowering healthcare costs and providing healthier outcomes for everyone.
    • Then start with the next regulatory agency until all have been updated.
  6. Drill for America’s domestic energy and use the royalties on federal lands to retire the debt and/or fund needed infrastructure repair instead of raising taxes.

The above proposed plan (for detailed explanations of each please go HERE and read the original article – it is well worth the time of every American!) presents just a few ideas but each would put U.S. competitiveness first and bring middle-class jobs back to America.

We are eager to see which 2016 presidential campaign candidates – in either party – embrace this prosperity agenda.

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