America can be economically strong again!

an op-ed by
Ruth McClung
March 2010

Haphazard spending is not the answer. With still close to one out of ten people out of work, not counting those who have given up or are underemployed, I believe getting the economy back on track is one of the most pressing matters for our government. Our federal government's solution appears to be spending our country's future earnings through such things as unfunded stimulus packages. This is not helping our present economic crisis and it is adding to an even larger crisis down the road.

Economic stability will only come from the private sector. This means we need business, large and small, to have success if we are to get our unemployment down. Spending needs to occur, but the spending needs to come from investments made by the people, not the government. This is the only way the spending adds any value to the economy.

The following six steps will greatly improve the economy and help get our unemployment rates down.

  • Get rid of road blocks for businesses. Road blocks for businesses come in all forms. We need to clean up the bureaucracy, such as extreme environmental hurdles for businesses. Many regulations have been in place for decades and are no longer applicable. We need to also create tax incentives for entrepreneurs to start companies and create jobs, instead of adding unnecessary financial burdens.
  • Lower or get rid of the capital gains tax. Capital gains tax is a tax on jobs and investment. If we reduce this tax, it will increase private investment in our economy. The past has shown that when capital gains taxes are lowered, the tax revenue actually goes up from the investment stimulus it causes. For many, the money taxed away by capital gains tax, was meant to be used for a college education, retirement, starting a business, buying a house or other monetary needs. It punishes those who save and invest for their future. It also can be extremely unfair. The money "gained" and taxed may actually be less than what was first invested if one includes inflation. See Capital Gains
  • Lower the corporate tax rate. The United States has one of the highest corporate tax rates in the world. This makes it hard for our businesses to compete with the global market and causes jobs to be contracted out overseas. We should work on bringing down our business tax to 12.5%. That rate significantly stimulated Ireland's economy.
  • A window for foreign investment. If a company earns money overseas and those earnings are brought to the United States, the money gets taxed at a rate of roughly 35%. This causes much of that money to be invested overseas instead of here in the United States. In 2004 a limited window was given where the foreign profits were only taxed at 5.25%. This window brought in more than $350 billion and generated roughly $18 billion in tax revenue. Another window would give a much needed jolt to our economy.
  • Predictability. It is difficult to invest or expand a business in uncertain times. The government needs to become more predictable and planned in its economic direction, as well as be fiscally responsible and transparent. This includes halting legislation like "Obamacare" and "Cap and Tax" which kills the economy.
  • Stop stealing the wealth. We need to stop unnecessary spending and balance the budget. Then we should start paying off our debt! At over 11 trillion dollars (or over $36,000 for every man women and child in the United States) our national debt is out of control. $11 trillion does not even count what the country owes to our Vets or to Social Security, Medicare and Medicaid. This pushes the amount owed per person to roughly $184,000. Through this unprecedented debt we are robbing from our children and grandchildren, and depriving our seniors of the resources they will need. This is unsustainable and has to stop!

Taking these steps would increase investment in the United States and in our future. They would create jobs and improve our economy without taxing our future generations.

 

 

Ruth McClung for US Congress Arizona CD 7

 

 

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Paid for by Ruth McClung for Congress

Ruth McClung for Congress

PO Box 40544

Tucson, AZ 85717

ruth@ruth4az.com

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