We’ve been divided by too much partisanship. Americans want a national purpose for which we can work together. This proposal is a long-term pan-partisan solution to the most serious crisis that we all share, a fiscal crisis.
The crisis is not yet well recognized, but it will be soon. We now have 3.2 workers for every Social Security beneficiary. Because of demographics we’re starting a steady decline to one-third fewer workers per beneficiary 25 years from now. Two workers being taxed won’t be enough to support one beneficiary.
Even more serious is the fact that during the next quarter century, the costs of Medicare, Medicaid, and interest on the federal debt, in addition to Social Security, will each rise much faster than our economy, as measured by Gross Domestic Product (GDP). Experience with higher tax rates and tax systems over the past 50 years shows that federal revenues must always be less than one-fifth of GDP.
To pay off our present federal debt of almost $10 trillion, the federal government would have to spend every penny it takes in for more than four years. Demographics will cause this problem to be four to six times greater, unless we do something about it. Solving this fiscal crisis we all share is the common purpose for which we must work together.
Major reforms are needed in several areas to resolve the crisis. Our economy needs to be free to grow. All our youth need quality education to participate fully in the global economy, to marry, support a family, and have an opportunity to realize the American dream.
We have to reduce the influence of special interests in Washington by passing a constitutional amendment that only individual private citizens can contribute to national political candidates or campaigns. To make ours a true democracy, elected officials must represent and serve individual citizens rather than industries, companies, unions, associations or other special interests. To restore government “of the people, by the people, for the people”, only people should provide financial support for electing their representatives.
In education, state and local governments must give parents the right to choose the school their child will attend.
To help the poorest among us and to grow our economy, we need to tax consumption rather than work by enacting the Fair Tax. The Fair Tax will pay a monthly prebate to every family equal to at least 100% of the taxes the family will pay if it spends at the poverty level. The very poorest will get help they have never received. What you earn, you keep. You’ll be taxed not on what you create but only on what you spend for something new. You won’t be taxed on what you invest in education or job training.
We need to remove government subsidies so that domestic energy sources of all types can be harnessed to reduce dependence on foreign oil.
Please look below for a link to my short video, "Our Country is Broke - How You Can Fix It."