October 4, 2011

Fractals of Change: Where Did All the Tax Revenue Go?

Tom Evslin takes on the federal revenue/spending issue and concludes with these recommendations for how to get the economy chugging again. Some clear thinking here, but his energy recommendation will fall on mostly deaf ears because of the present Administration's infatuation with expensive alternative energy which is not the answer to creating jobs for America.

"We need a booming economy! More government spending won't get us there and government has nothing left to spend anyway. So how do we get there?
  1. Tap America's abundant energy resources now, especially abundant natural gas. The payoff will be a rebirth of manufacturing - and lots of middleclass jobs – based on low energy costs compared to our competitors.
  2. Reform permitting drastically so that corporations like Google and Amazon can spend the huge amounts of earnings they have in their coffers to boost their worldwide presence from their American base and so that the 20 year backlog of public and private infrastructure projects awaiting approval and fighting off nuisance lawsuits can be done in the next five years.
  3. Reform the tax code to eliminate loopholes and reduce the nominal rates dramatically. Actually this will increase the share of taxes paid by the rich (because they use loopholes more). It will also make America a competitive place to invest corporate cash (see #1 and #2 above).
  4. Don't bail out anymore banks.
  5. Reduce federal spending to less than 20% of GDP.
  6. Through all of the above, increase the relative wealth of the middle class so that our government revenues are not so much at risk in years when top earners are not earning top dollar."



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