Over the last 100 years, the federal government has developed structural impediments to growth. Our tax code requires over 3 million man/years for compliance, or 2% of the current working population. If compliance could be reduced by 50%, national productivity should increase 1% annually. Payroll taxes to support entitlement programs are higher than income taxes for 80% of the working population. Healthcare mandates, minimum wage levels, and payroll taxes discourage the hiring of those just entering the workforce. For those on welfare, means-testing disincentivizes earning income. Does it make any sense at all that the highest marginal taxes [when benefit losses are included] are faced by those on welfare and disability? Regulations fall most heavily on new and small businesses that would otherwise be the primary engine of job growth. Growth in the federal debt continues at a faster pace than GNP growth, and may contribute to the slowing economy.
Both political parties agree that something needs to be done, as do economists and academics; but the various factions’ prescriptions are diametrically opposed.
It’s time for citizens to develop “A Plan of Our Own”. Implementation would even benefit previously “do-nothing” legislators. Having “fixed” the system, re-election would be assured.
The purpose of this blog is to find common ground through discussion of possible solutions. Comment and criticism is encouraged as long as it moves us forward. The author will regularly review comments and respond, however, if comments are inappropriate or not helpful to the discussion, they will be deleted.