pbrower2a
Atlas Star
Posts: 26,839
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« on: January 06, 2012, 10:31:18 AM » |
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To encourage thrift:
1. Abolish income taxes on interest income on bank deposits, certificates of deposit, insurance policies, corporate bonds, and domestic government bonds. (Not from consumer loans, though!)
2. Make interest a non-deductible item (that includes abolition of the mortgage interest deduction).
3. Push savings bonds as a long-term investment.
4. Go to a gold standard that makes the printing of fiat currency for expansionary purposes impossible.
I'm not saying that the fourth item would all be good for manufacturing.
For manufacturing --
Tariffs have been mentioned.
1. Have a national health care system, basically Medicare for all funded with a combination of income taxes and consumption taxes (federal sales tax), and maybe some 'sin taxes' (alcohol content, cancerweed products, and a federal tax upon fines for moving violations). As it is consumers get an effective subsidy from patronizing a business entity that does not have health insurance for its workers, so push the cost to the consumer. Add to that, the system that we have imposes costs on any exports and effectively subsidizes any import from companies that have less-costly systems.
2. Return to the graduated income tax so that small-scale manufacturing (and retailing and banking, different stories in themselves) no longer gets the disadvantage of facing the advantage of economies of scale that giant entities have in marketing, financing, employee benefits, information technology, vertical integration, buying politicians, and tax compliance. The nearly-flat tax code for large-scale investors and corporations effectively allows them to out-compete small business. Make payments to lobbyists, directly or otherwise, non-deductible.
Small business is where the innovations and good service come from.
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