Our government’s solution to a crumbling economy, staggering unemployment, and inflation is $1.5T in new taxes, primarily from the ‘rich’, and $580B in cuts to programs including Social Security. Career politicians continually threaten to gut education, medical research, layoff police and firefighters if they don’t get their way. Is this acceptable to you?
In 2009, the combined gross income of Americans earning at least $500,000 per year was ~$1T, accounting for $257B in federal income taxes. That same year, our national debt increased by $1.6T. Confiscating every penny of disposable income from president Obama’s new ‘rich’ (individuals earning at least $200,000 per year) would raise approximately ~$1.5T, still not enough to offset uncontrolled government spending (totaling ~$4T over the last 3 years) and our national debt of ~$14.7T. Taxing ‘the rich’ is not a way to balance our budget or revitalize our failing economy!
Some consider inflation a hidden, or indirect tax. Inflation occurs when the Federal Reserve prints money, not backed by gold and silver, and puts it into circulation. This slowly devalues money already circulating (savings, salaries, investments, and in your pocket). As inflation increases, purchasing power decreases, and every dollar spent buys less. Inflation is felt by you and me as cost of living increases.
The misery index (MI), established in the 1960's, is the official unemployment rate (9.1%, not the real rate of 16.2%) added to the inflation rate (3.77%). The average MI from 2001-08 was 8.11, and rose to a staggering 12.87 in August. High unemployment and inflation implies a deterioration in economic performance and an increase in misery, while creating economic and social costs for our country. Are you feeling the misery?
Create more taxpayers, not new taxes! Replace the complicated tax code with a flat tax with only three deductions: higher education, charitable donations, and mortgage interest. This strategy has proven successful for other countries. When Russia adopted a 13% flat tax in 2001, and saw tax revenues increased by 50% and overall economic growth of 10%. Lower the business tax rate to 24% or less, allowing the private sector (where taxpayers reside) to stabilize and grow. Eliminate burdensome regulations translating to ~$15,500 in savings per US household. Lastly, focus on domestic oil, natural gas, coal, and nuclear energy production which in turn create new jobs spurring economic growth, reduce our dependence on foreign oil, and strengthen our national security.
Dr. Gerry Dembrowski
2012 7th Congressional Candidate
21 Cummings Park Drive
Woburn, MA 01801