Saturday, October 22, 2011

Occupy Personal Responsibility – the 50-50-86 Plan

Posted by CotoBlogzz

Since the American revolution, the US tax system has mostly been used for the 4Rs:  Revenue, Redistribution, Repricing and Representation.    Revenue is used to spend on armies, roads, schools and hospitals, and on more indirect government functions like market regulation or legal systems.  Then there is redistribution of wealth emphasized by the current administration and the Democrats.  Repricing is used to tinker with the macro-economic system and to discourage certain consumption, or as the President might say, used by the more fiscal conservatives to dirty the water and the air.

The tinkering of the US macro-economic system has a direct impact on the US Economic Freedom.  For over a decade, the Wall Street Journal and  the Heritage Foundation, Washington's preeminent think tank, have tracked economic freedom around the world with their influential Index of Economic Freedom.  The 2010 Index of Economic Freedom ranks the US as number nine, with Hong Kong as number one.  In 2009, the same index had the US in the number six slot.  What happened?  Mostly what we refer to as the US Economic Freedom’s Triple Constraint:  1)  ObamaCare 2)  Cap & Trade (EPA) and 3)  Card Check.

When parasites (EPA) are allowed to tinker with macro-economics

The American revolutionary slogan "no taxation without representation" implied a fairness doctrine:  since rulers tax citizens, citizens should demand accountability from their rulers as the other part of this bargain.  Current GOP presidential contenders and  Occupy Wall Street protesters alike agree on something.  Tax reform is desperately necessary.

Now, Herman Cain’s 9-9-9- Plan notwithstanding, studies have shown that direct taxation generates the greatest degree of accountability and better governance, while indirect taxation tends to have smaller effects, thus, we are proposing bold-colored tax reform using a modified principle:  No taxation without representation and no representation without taxation.   

Since 50% of US residents do not pay taxes, it is not fair for them decide on the level of wealth redistribution, for example.  This means that if you pay zero taxes, you can’t vote.

Further, since the nation is suffering from a pandemic – a symbiotic relationship between politicians, unions, lobbyists and parasitic bureaucracies and highly impacting the US Economic Freedom, organized public labor should be 86ed.

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