Sad thing is that Rick and Gingrich, Paul, etc had plans people would have understood...Romney didnt really explain anything except pain for folks with no upside. That is not the hope of a ronald reagan party.
My family put the following together that we would love to see if Rick could support. Most of it comes from his previous platform. We believe this will create 25Million jobs, 7 trillion of new investment, and 1 trillion of new revenue for the govt to balance the budget and pay down the debt with once we cut our spending.
We call this plan the Patriot Economic Plan(PEP)--We need some PEP in this country right now.
Blessings the Sims Family
The Patriot Economic Plan:
Establish Strategic public/private syndicate incentive plans with the following benefits:
a. Redirect the corporate rate to be the lowest in the world, from 35% to 12.5% for members that will use their tax savings towards their syndicate membership and participation in this program. Said membership will require investment of savings into syndicate startups, US facilities, tooling, and staff.
b. Eliminate the remaining corporate income tax for members of this program who invest in manufacturing – from 12.5% to 0% - for those who invest these savings of "a" and "b" in facilities and infrastructure in the US. This savings will offset regulation costs to build new facilities, and spur middle income job creation in the United States, creating a job multiplier effect for workers
c. Spur innovation in America by Increasing the Research & Development Tax Credit from 14% to 20% and make it permanent for these partnerships.
d. Eliminate the tax on repatriated taxable corporate income – from 35% to 0% - for said partners. Partners/Manufacturers invest in plant and equipment; and reduce the corporate tax rate from 35% to 5.25% on other repatriated income and allow for 100% expensing for new business equipment
e. Establish Technology/IP pools with the URIP plan to give these members exclusive ability to grab the rights of use for the companies they invest in dependent on the tier level of investment. STD rights of use for folks at lower tier levels of investment. Allow contribution of IP by companies as an equity contribution to help establish a strong position for these programs.
Create a separate plan from social security called URIP (universal retirement and investment plan), similar to Chile plan(without the high management fees), and enhancing the crowd sourcing bill, to stabilize the economy. This fund will allow US citizens to be jointly assembled and join in with the syndicate partnerships. For millions of American’s this will give them the ability to invest in our future and see a return similar to the oil returns for citizens in Alaska.
Increase the combined tariff + inspection fees to be 12.5% for all imports. This change will offset/pay for ALL on or off budget externally focused US agencies. This should move the US towards a focus on true national security (CIA, homeland security, state department, FDA, military policing, and other agencies) and making it so the US govt can DO their jobs successfully here and abroad. It WILL help balance the budget and create a much larger influx of investment and tax revenue when working in parallel with items 1 and 2. This 3 point plan will create a clear benefit and positive change that will incentivize folks to produce in the US with legitimate balanced reasoning as any business or country would drive for.
Reason’s for the Patriot Econimic Plan(PEP):
The current administration attempted to do a startup America plan. The effect to technology development was significant! But the economic impact was timid and muted from what one would hope for from such an investment and obvious level of invention and uniform efforts by our government to move forward.
Why was this economic result so timid?
I would argue from my experience in that sector the reason was the lacking of the involvement of strategics, which control the growth of the economy. The administration’s plan did not account for strategics, or strategic risk, in the form of high capex, high tax, and high regulation burdens for these like any other companies launch. Historically our greatest booms did not see the same WW competition that creates an anti-US investment and anti-US growth burden that holds back traction for the administrations planted efforts. If previous efforts in our nation would have seen the same climate and infrastructural opposition they never would have happened. This would have meant the greatest nation the world has ever seen would never have bloomed and the world would have been much worse off because of it.
It’s very sad to say but the result of the lacking of having strategics involved is the greatest moon shot like squandering of all time. The administration attempted to fill these defects in their plan with loans without syndicates, and without offsetting the strategic risk. In addition in the event of failure there was little to no chance of repayment, or restructuring, possible and the only result in the end was the loss of capital, IP, and rights from these investments. To be successful they needed to put into their plan incentives to draw in strategics and offset the cost structure at a minimum for the tax and regulatory. This was not done. The result I have witnessed from my firsthand experience in this sector is failure of company after company, transfer of technology, IP offshoring, and the laying off of thousands of workers. Like early failures in the space administration this effect is very damaging for our nation’s confidence, our very existence, and future. Success is mandatory to breed future success. Too many great inventions will be mothballed, sold overseas, or their IP will be bought up and used to sue people in the future that try to restart these efforts. For all the same reasons and gains our military and NASA gave us in terms of the computers, new materials, and other inventions that drove our nation to greatness…we need to retool this effort so that it actually looks like the Apollo mission its capable of delivering on. If we don’t do this immediately, rather than just subsidizing the research for other nations, we will also be handing off the future to other nations.
As one small example it is clearly known that the ability to be energy independent is within our grasp. The following are two examples of technologies that the patriot economic plan could ignite resulting in US energy independence:
a. Stalled 90% efficient clean coal plasma coal reactor for electricity, jet fuel, precious metals, and building materials production---http://www.plasma2energy.com/
b. 3D battery: stalled 2.5x improvement in battery performance, with instant 5C charging enabled, for hybrid cars, trucks, phones, and all portable devices-- http://prietobattery.com/
Current US operations that export can’t compete globally with the corporate taxes (we are the highest in the modern world—lowest are Ireland and china*—12.5% and 15% respectively) and "indirect taxes-VAT taxes" (17.5% in china) that are allowed by the WTO under VAT models. China and many nations have policies like the patriot economic plan that give tax breaks for companies. These plans in china vary between 30% down to 15% dependent on the incentive option the company goes after. A company therefore based in china shipping to the US can save up to 37.5% on taxes.
These tax and tariff structures are economic killers for the US economy and were the oriiginal first causes of job outsourcing losses in the 1990's and continue today. These advantages to these countries pull away our knowledge, our jobs, and our technology/industrial bases out of the US into their nations. This can be saw even with our nearest neighbors post NAFTA( in a supposed free trade environment ) we still had 7-8% taxes on imports by Canada (who has government paid healthcare—reducing costs for business and pension plan charges on corporations). In affect these free trade nations, other than the US, are allowed low cost structures and are incentivizing growth by low taxes, and low tariff’s, while our nation has almost no tariffs, or fees, in place and the highest corporate tax rate in the world. What then is the real killer is that we then borrow the money to pay for all of our outward focused services (that also maintain the worlds stable economic ecosystem) and then must pay interest on this borrowed money. The concern here is obvious that without two-way based trade and balanced advantages just lowering the tax rates would probably cause a shifting of the tax burden to the general public to pay for the very reason these other nations have these vat taxes on imports. These other free trade nations pay for the cost of trade with those VAT taxes. We borrow it and damage our nation and this must stop immediately!
China also has non-tarriff barriers for certain technologies and requires Chinese citizens to be half owners for these products to be allowed in china. Furthermore this is driven via production out of china and thus said tariffs to be waived from the export side instead. Such a strong armed tactic is very reminiscent of our own nations break away strategies with Britain that lead to our industrial revolution. The Chinese have had a chance to craft their economy based on the advantage of seeing what worked on launching our economy with Great Britain. Now obviously our systems are not updated to the 21st Century economy and they are using our playbook against us. We must change this immediately to avoid any further economic damage. Why has such an obvious need to update our trade treaties, enforcement and tax policies not been done to date?
Obviously historically high tariff battles begin trade wars that have had historic massive impacts to the US and world economies. But services require revenue and one should not borrow and pay interest on items that should be paid for up front with low tariffs, which many nations do successfully today.
For trade policy changes there are strong reasons in agriculture to believe that such efforts of no tariffs are helpful. But are they? Not every nation has the same food crops or food staples for their peoples to eat. Those nations with climate condition advantages to grow certain crops such as certain nuts and fruits that we have better conditions for is good for the US agriculture sectors that are in high demand to continue to grow. But those climate and soil advantages that come from northern hemisphere advantages are absolute advantages that don’t require a <3% tariff advantage to thrive. What they need are open markets. They will thrive as long as the tariffs between nations do not heavily burden the costs of purchase. This is the space as saw by nations current vat policies of sub 15%.
Also one has to be really careful to not consider sustainability and the combined ecosystem of the grower and the markets and nations they sell to. The most recent example is for the US potato market, which is a strong economy adder for the northwest and its rich soil and climate. But as the US job market weakened and the buyer’s no longer could afford eating out the demand needs to the fast food stores greatly reduced. In other nations the potato is not a staple crop. Instead foods such as rice cover their people’s needs and have a very long history of doing so. The lack of updating the policies for the ecosystem drained the resources so much that potato factories in the northwest had to close losing jobs for local economies that were already hurting. It also therefore affected the costs and ability to get to market for the remaining potato market.
Lastly for trade there are also many influential US and, non US focused camps, and representatives of such groups, that do believe strongly in the CONCEPT of all nations must someday have completely open borders with no tariffs. But even their strongest libertarian branches of the republican side, such as Dr. Ron Paul, will state not zero tariffs but at least low tariffs. Obviously tariff’s will never be zero since services rendered must be paid for so like anything in life there is nothing truly free. A price must always be paid. So reasonable revenue must be acquired to pay for the service and make it sustainable without deficit borrowing and spending. Looking at free trade partners this low tariffs appears to be around (<15%). This target zone for low tariffs should not incentivize tariff trade wars, embargos, and or nation vs nation wars. This same argument was once coined by Democratic President Woodrow Wilson, who was the father of free trade. He pushed for moving away from high tariffs to the lowering of income taxes and the creation of income and corporate taxes to offset this difference. This became that administrations major economic change for the nation. It was an is a very controversial set of changes in american history. But outside of this known split in economic theology that occurred in this time period much has changed with or without that change since that era. So much so that the global ecosystem now cries out of dysfunction and the need for change that must be moved forward.
For tax policy change the problem has been for years argued in congress that if we reduce corporate taxes there is no reason for those dollars not to flee the US and go elsewhere. The recent discussions have focused on corporate loopholes to offshore workers vs. territorial tax systems. Obviously this discussion has to happen. But it’s not the the most strategic and beneficial target to go after. One side argues we need more revenue and the other we need lower taxes. Thus with so many non-ending opposing arguments the quagmire has stopped the massive change that is essential for our nation’s very survival. So the congress hasn’t been willing to go along with any plan, until recent discussions of a meager 10% reduction of the corporate tax rate. I say meager since historically economic recovery has required 40-50% shifts tax/tariff policy to restart our economy. This can be seen in the 1920’s, WWII period and post recovery given the huge infrastructure investment, and the Reagan years.
So what can be done not under the premise of a compromise but under the need of one unified patriotic action to maintain our goodness and impact in the world?
My suggestion is the patriot economic plan!
The patriot economic plan incentivizes the offset of vat taxes and corporate taxes by a two-step process to go to an affective 0% tax rate for those that invest in our nation.
I want to repeat this message that a two way incentive is created with the patriot economic plan where those who’s patriotic focus is to invest in the US see 0% taxes for their business if they go all in.
In such a model the incentives within a stable economy are too large not to take advantage of for any corporation. Any multinational company would invest in this model given the trillions in savings. As initial starters the savings are apparent in the areas of accounting, R&D investment, manufacturing, and supply chain costs.
If that were not enough on its own there is a very strong incentive for corporations to have a huge derisked value add and upside in the form of a future revenue streams, or reduced cost by access to new technology, without bearing the full cost of researching and developing it on their own. In addition the danger of lawsuits would be done away with in this model. The economy and these companies’ efforts could then be focused on the future, and growth, rather than reallocation of these dollars to large defense funds or lawsuit winnings. In addition the plan suggests making the R&D credit permanent, and increasing the benefit to offset and improve the cost model for innovation. It also plans for 100% expensing of all equipment investment by these strategics, companies and individuals in the US.
The Patriot Economic Plan creates an opportunity for the people to get involved similar to the initial goals of social security, the Chilean investment plan (without the huge management fees), and the recent crowd source funding bill. This sub plan called the URIP plan—universal retirement and investment plan offers a strategy to grow the economy and get ahead of inflation for our nation. It allows for this tax free investment to be used to be part of the syndicate partnership efforts with a return similar to what is done in Alaska with the oil companies. Besides investing in our nation the URIP plan allows for citizens to pay for investing in their major life events (1st house, catastrophic/chronic medical care, education, etc…) with savings administered similar to Social Security within dept of housing, health, dept of education and similar life impacting groups. These departments need to be shifted away from being tax and spend focused and towards invest and return focused to give the power back to the people and not washington. The URIP plan as part of the patriot plan offers a way to move from a tax model to an investment and growth model for our nation.
Lastly the Patriot Economic Plan takes a serious look at modernizing the operations and costs of doing business in the new business world of the 21st Century. This focus is on government costs and the US citizens constitutionally expected services of govt. Currently as stated other nations carry fees, tax and tariff burden advantages of a minimum of 37.5% that have been tested and approved by the ruling body the WTO. We in turn borrow this money to pay for all of the multi 100’s of billions we pay out annually to keep this world wide economy safe, stable and functional. There is obviously a point in time when and where this model of generosity was possible to maintain. But now we are foolishly borrowing the money, paying the interest on this effort, and damaging our economy in the process. Now that we have large deficits we must not borrow the money to pay for these services for us and the world.
An important attachment to this is the fact that supply chains and access for many Govt departments that previously did the majority of their historic work in the US border’s need to now have operations in foreign countries, as well as in the US, or if they had smaller foreign operations and these operations must be vastly expanded. This is a HUGE unspoken cost increase for these functions that have not been acted on by the congress. In affect these functions must either be hidden costs, or the departments are no longer fulfilling their missions/duties, and or all of the above. In a post 9/11 society this slowness of our govt to modernize is inexcusable. The Patriot Economic Plan looks at the new worldwide business models and how the US govt must play in terms of national security, safety, regulations, etc. To pay for this huge increase in costs for the US govt to fulfill its constitutional duties effectively the only answer is to have those groups that cross our border, or affect our markets, via all types of trade see a new combined low tariff (10-15%) and fees (2-3%) cost increase to pay for FDA, CIA, homeland security, state department, military, and numerous other outward focused agencies. This will in affect reduce the deficit, fulfill the constitutional duties of govt, and offset the cost advantages other nations have given their countries through similar strategies.