Taxes and Spending - we've been asking the wrong question (Hope for America)

The key question that should be asked and answered is "How much money should be taken from the private sector and moved to the federal government annually?"  

Should we tax the rich more or add higher tariffs? Should we tax the middle class less? We spend a lot of time arguing how much each group should be taxed but avoid asking how much should taxes be overall. Currently there is no control on how much the government can tax. The Boston Tea Party was a protest on taxation and one of the key events of the revolution. Uncertainty in tax policy stifles the economy. How much to tax needs to be coupled with a limit on spending (how much debt is acceptable). Spending more than we take in is a tax on our children. We get benefit and send the bill to the next generation.  

It is time for this to change.  

The Next Movement solution: Pass a constitutional amendment that limits the amount of money the federal government can take in as a percentage of GDP and limit the national debt. 

There is and should be conversation on what the percentage should be and the limit on national debt. The average revenue from 2003-2022 according to the CBO is 16.6% with about 6% being Social Security and Medicare. I would start the conversation with proposing a 12% limit on federal revenue (excluding SS/Medicare which I will discuss in a separate post later).  I would recommend building in a federal emergency fund to cover unforeseen emergencies (natural disasters, viruses, etc.) with the ability to go into debt temporarily for extreme emergencies. There would need to be a grace period to get us out of our current debt.

Congress owns the purse strings and needs to be fiscally responsible with our money and or children's money. 

Once this is in place, the American people can elect the candidates that best represent how they want to spend that money and who they want to collect the money from. 

Results of tax revenue and national debt limits:

1) Predictability enabling economic stability because a shift in political power does not fundamentality change the overall tax situation.

2) Incentive of the federal government to grow overall economy because that is how they get to spend more.

3) Focus spending on the highest priorities of the American people.

4) Protect the next generation so that they can decide how to spend their money.

5) Pandering to one constituency based on tax policy requires a trade-off so on balance the tax code is incented to be more fair for the greatest number of citizens. 

6) Less reliance on foreign investment which provides an incentive to keep the American people at the center (and not a foreign entity).

Related references: (a) Congressional Budget Office: https://www.cbo.gov/publication/59730

To join the next movement communication list send an email to HopeForOurAmerica@gmail.com.

On Taxes and Spending (Candidate Positions)

You are impacted every paycheck and every day by taxes (federal income, business taxes, gas tax, etc.). There are taxes withheld from your paycheck and then in April you file annual taxes. The current tax code was put in place under President Donald Trump in 2017 called the Tax Cuts and Jobs Act (TCJA) with some modifications during the Biden-Harris presidency. Most of the provisions of the TCJA are set to expire at the end of 2025. Donald Trump's position is to extend this tax code and make some adjustments, Kamala Harris has not indicated if she will extend the tax code (which implies reverting to previous tax laws) and has made some items she would include in her tax plan.

This captures each candidates positions based on what they have said and what is included in their position statements on each of their respective sites. No attempt is made to represent what others have said about their plans or what they say about each others plans. 

Generally, Donald Trump favors reducing taxes overall and Kamala Harris favors raising taxes with some targeted areas of tax reductions in her plan.

Neither candidate has expressed a plan to reduce spending or the national debt. To be fair, Trump has stated that the national debt is a concern and he will reduce regulations. 

It is important to note that the president often proposes the budget and tax provisions but congress actually has the responsibility to approve spending and write the laws.

Summary of Proposed Income Tax Changes:

Summary of Proposed Business Tax Changes:

This is presented to reflect the candidates positions and proposed policies and not render a personal opinion on any of their policies. You, the American people, can look at the facts and think for yourself.

Look for an upcoming post that will provide an alternate way to look at taxes and spending (which also will not endorse or condemn either candidate). However, the purpose of the "Candidate Positions" posts are to provide facts and let you interpret and decide which policies you like best for Our America.

Related references: (a) Kamala Harris Issue Statements; (b)  Donald Trump Platform; (c) Tax rates pre/post TCJA (d) Tax Foundation Candidates Info

To join the next movement communication list send an email to HopeForOurAmerica@gmail.com.

Nothing more than an election

It is time for a fundamental change in how our governing works for the people and how we interact in the political sphere in the United States of America. The time is now. 

This election is important, but the republic that is the foundation of our country will survive either of the major candidates. Our obligation is to choose the candidate we think will best help the United States of America thrive now and well into the future - or at least which candidate will do the least damage in preventing the prosperity of this country.

I invite each of you to familiarize yourself with what the candidates promise. You may find their positions on their respective website (Kamala Harris Issues and Donald Trump Platform). Evaluate their total positions and look at their records and historic positions. I plan to provide some analysis of issues over the next couple of months.  

My simple requests of the candidates are the following:

1) Make clear to the American people what you will do as President of the United States. 

2) Answer the questions I will pose on this forum.

3) Agree to a 90 minute debate in Greensboro, NC that is hosted by me (not the media but just an ordinary everyday citizen) and broadcast by the media. No arguing terms or format. Once you both agree I will clearly layout the structure.  

I am realistic - my ability to reach a large audience is limited. The likelihood of getting any of the three of my requests is small. However, this is a movement which will build momentum over time and not a political stand.

Finally, I understand that this election is important. However, the questions I will be asking will be answered with a new movement over the next several election cycles. This movement transcends the Democrat or Republican party and is about moving America forward. This is an invitation to both of those entities to participate in this movement.  

This is only the beginning of the next revolution.  

 To join the next movement communication list send an email to HopeForOurAmerica@gmail.com.