Income, Wealth and the Saving of a Nation
Wednesday, February 4th, 2009President Obama wants to cap the executive compensation for firms which receive “bailout money” to $500,000 per year.
Tell you what, Barack… I’ll go you one better.
It’s the Buck B. Bagawk Economic Realignment Plan. This is a two phase plan, which Eliminates the National Debt.
Phase 1: Until the National Debt is paid off:
- Rewrite the tax code to eliminate all current deductions, credits, loopholes. New tax code works like this:
- Persons earning less than the national poverty level will receive a tax credit to make up 90% of the difference
- Persons making between the national poverty level and $5 million will be taxed at a flat rate (around 30%)
- Any personal income over and above $5 million in any one year will be taxed at 90%
- Personal wealth (holdings) will be taxed. Tax personal net worth over and above $100 million at 90%
- Corporate profits will be taxed at 30%
- Federal spending is frozen, with annual adjustments for inflation.
- Any company with an average market capitalization of greater than $100 billion for any one calendar year must split, spin-off, right-size or otherwise become “not too big to fail”
“No one can live on ‘poverty-level’ income!” I hear you shouting… well, then, maybe it’s time to recalculate what poverty means. Set a minimum standard of living, below which no one should be allowed to fall. Period. Whatever that is, is the National Poverty Level. If you are an adult responsible for your own care, the Federal Government should guarantee you 90% of a poverty lifestyle. Virtually no one wants to live in impoverished squalor, but it’s reassuring to know that that’s as far down as you can go, and from there, you stand a chance of climbing back up to “working class”.
Once the National Debt is paid off, we move into Phase 2:
- The tax code remains unchanged, except that the tax rate (around 30%) is adjusted based on previous year’s spending and borrowing (if any)
- The Federal Government of The USA operates at a slight surplus, accumulating a “rainy day” savings (targeted to 50% of the previous year’s Federal Budget)
- The Federal Government of The USA carries no long-term debt (greater than 5 years), and borrows only in cases of extreme emergency
Taxing WEALTH?! HOLDINGS?! That’s UNAMERICAN!!!
No. Bleeding America dry is unamerican.
There is no way an individual (or even a single-income family of five) can spend a million dollars a year on things they need. Sure,new Escalades every 3 months for every member of the household… OK… but that’s wasteful. I’m talking about groceries, comfortable shelter, reasonable transportation, heat, electricity and so on. A million dollars a year is a lot of money. 5 million is 5 lots of money. If you can’t live within your means on $5 million, maybe living isn’t for you.
What about $100 million in net worth? The bottom line is that dudes like Bill Gates and Warren Buffet are sitting on flipping great wads of cash and doing nothing with it, or they’re playing with it, or they’re making petty values judgments as to who should receive charitable gifts. Screw that. Bill, Warren, the rest of you billionaires… Worry about your own well-being. We have a country to save. Here’s your hundred million a piece. The rest goes into frugally-managed public projects to restore and improve education, transportation, water, sewage treatment, communications, renewable energy and jobs in this country.
Oh, and as an extra little incentive to keep things on the straight and narrow, all contracts will require no less than 3 bids. Cost over-runs will be investigated by federal auditors, and any uncovered corruption will be federally prosecuted as a felony. Convictions will result in full restitution and federal prison time for all parties involved.