Ten American Solutions to get the American economy on the right track

Prosperity for All Americans. In the midst of financial crisis, corporate bailouts, and turmoil in the markets, there are millions of Americans trying to keep their jobs, pay their mortgages, and retire with a decent savings. To get America out of this financial crisis and propel economic growth in the future, serious and sensible action is needed. Here are ten proposed American Solutions to get the American economy on the right track.

Suspend the mark-to-market rule
The mark-to-market accounting rule is driving companies to unnecessary bankruptcy. The mark-to-market rule should be suspended for six months and then replaced with a three year rolling average mark-to-market.

Repeal Sarbanes-Oxley
The 2002 Sarbanes-Oxley Act added massive new reams of accounting red tape for businesses. Yet it failed with Fannie Mae, Freddie Mac, Bear Stearns, Lehman Brothers, and AIG. It is crippling our entrepreneurial environment, creating a regulatory environment that drives companies abroad for capital, and causing public companies to delist from the stock market, effectively driving businesses to be less accountable than they were before.

Abolish the capital gains tax to match China and Singapore
We should match our competitors in China and Singapore by going to a zero capital gains tax rate. Private capital will flood into Wall Street with zero capital gains. A zero capital gains tax would lead to a dramatic increase in federal revenue through a larger, more competitive, and more prosperous economy.

Lower the corporate tax rate to match Ireland
Congress compounds our long term weakness in economic competition by sustaining the world’s second highest corporate tax rate (three times higher than Ireland’s), all this while the world’s best competitors encourage savings and investment with low corporate tax rates and zero taxes on capital gains. Congress should lower the corporate tax rate to match Ireland’s.

Insist that the Federal Reserve focus on making the dollar stronger
The Federal Reserve should return to protecting the dollar against inflation. A sound dollar would bring down the cost of energy and provide a basis for real economic growth measured in a real currency. In its search for a pain free here and now, the Fed has flooded the world with dollars which has set the stage for a return to the 1970s model of stagflation in which the combination of high taxes and high inflation cripple economic growth and weaken our economic future.

End corporate bailouts and corporate welfare
We cannot have capitalism on the way up and socialism on the way down. We cannot have a welfare state for Wall Street. Recent corporate bailouts have burdened taxpayers. Now Congress is reviewing a bailout for bad banking debt that will cost another $700 billion dollars and give unlimited powers to the Treasury Secretary. This approach must be defeated.

End earmarks and wasteful pork-barrel spending
The Federal Government should return to a fiscal policy of controlled spending. Economic policies that enforce limited government and fiscal discipline enable the lowest possible interest rates so the private sector can grow. We should end unnecessary earmarks and pork-barrel spending immediately.

Create an optional single rate tax system
Create a tax system where all Americans can file their taxes with just a single page. Apply a single tax rate of 17% to all individuals, with a generous standard exemption. This plan would eliminate all income taxes for a family of four making under $46,000, while closing loopholes for higher-earning individuals. Taxpayers would be able to choose a single rate system or the current tax system.

Give young Americans the option to have a Personal Social Security Savings Account
Allow workers to pay into a Personal Savings Account. The minimum return of the current Social Security benefits would be guaranteed, though the taxpayer would have the potential to earn much more than that. Any money in the account of a taxpayer is personal property and can be passed on to surviving family members.

Eliminate the death tax
The death tax should be permanently eliminated so that hard-working Americans can pass their earned wealth onto their family without having to pay taxes on their wealth again.

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