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The path forward:

The key to economic strength is to utilize the skills of all the citizen of a country. Growth can no longer be driven by increased population. We must drive the economy by new technology.

The objective needs to be Full Employment and a Living Wage for all citizens of each country in the world.

In order to accomplish this goal, we need to implement a new way to fight inflation without reducing employment.

The US Federal budget puts insurance programs and government operation into a single accounting system. This covers up poor practices and policies.

1. The US Federal Budget should be broken out into:
   • Federal government operations
   • Retirement insurance system
   • Health care insurance system
   • Full employment insurance system
2. The Federal Government Operations Budget should be required to carry a debt which pays out five percent of budget annually at current interest rates. This will generate a need to raise taxes as inflation heats up.
3. Find a mechanism to ensure full employment
4. Stop funding tax breaks for special interests
5. Fully fund Social Security, Medicare and Medicaid each year *
6. Balance the Federal budget each year (allowing for up to five percentage of budget to pay interest on national debt).

* Each area of the Federal budget needs to be in actuarial balance each year.

The Rational

Can we find a way to move forward without all the political bickering?

We need to find common ground, a basis of agreement that allows consensus rather than contention.

A rational system for making decisions:

My fellow citizens, we need to make some basic decisions:

1. We either support the Free Enterprise System or we don't
2. We either support Democracy or we don't
3. We either support that everyone should have an equal opportunity to succeed or we don't.

Our personal code of conduct should include the following principles:

1. No lying
2. No cheating
3. No stealing
4. No touching without permission.

Once we accept that we support these principles all else falls into place.

We have a rational system for making decisions.

The Test:

Do you believe in the free enterprise system for economics?

Do you believe that everyone should have an equal opportunity to succeed?

If you answered yes to both of these questions then we are on the path to a Just Society:

The ideal world:

Can we describe the ideal world?

What would we like to achieve?

• A world without war.
• A world without bullies.
• A world without unnecessary pain.
• A world where each person can achieve their potential.
• A world where there is productive employment for all who care to work.
• A world where each person is happy.

Problems to tackle:

The US Federal budget deficit is a large national problem which needs solving now.

In 2011, the American people are struggling with a huge political issue and financial problem - the federal budget deficit.

We got into this problem over a number of years while control was held by each party. Playing the blame game is not useful. We just need to solve the problem with policy changes.

America is a Capitalist society. We believe the free enterprise system provides the most efficient control over use of capital, resources and labor. We need to rely on this system to work and not try to use government to micro manage to the advantage of one group over another.

We need to both reduce government spending and increase government income.

We have a second problem, high unemployment due too jobs going outside of our economy due too unfair costs to American based companies relative to non-American based companies.

We allow American manufactures to pay high taxes and high health care costs while not forcing foreign companies to pay a similar cost. This puts American companies at a competitive disadvantage.

We can solve these two problems by taking the following actions:

1. Provide a uniform business tax code which treats all companies the same - no favoritism.
2. Reduce the business tax to a low level, say a fixed ten percent of profit with no deductions for health care expenses or salaries over five times the median salary within that business.
3. Replace any lost federal income from the change in the business tax with a national sales tax.
4. If we choose to subsidize the health care for retired workers, we fund it from the national sales tax.
5. Provide for a standing Federal debt which must result in paying no more than five percent of Federal revenue as interest on the debt.
6. Number five to be phased in over a period of not more than twenty years.
7. Retain a simplified progressive personal income tax system which eliminates all non-standard deductions and provides the bulk of income for the Federal government.
8. Exclude basic retirement savings from income taxation.
9. Treat all personal income from what ever source as income taxed at the same progressive rate.
10. Remove the cap on Social Security withholding.
11. Means test Medicare payments to provide a deductible.

Action Plan:

• Doing your part
• Fixing the economy
• Fixing the government
• A new social contract

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