Back in 1994, a "Contract with America" won Republicans control of Congress. In "The Murder of the Middle Class," I lay out the "Middle Class Contract with America" that will help do it again in 2014.
America needs more jobs, not more partisan politics. This is a common-sense contract to protect, save and serve America's middle class. This contract is bipartisan and has only three goals: support, stimulate and reward middle class job creation.
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- Start with the NITV—a National Income Tax Vacation. Ronald Reagan already proved that a radical plan that gives power (and money) back to the people can turn the worst recession since the Great Depression into the biggest economic expansion in world history. Reagan saved America from economic ruin by cutting taxes from 70 to 28 percent. And this economy is even worse than Jimmy Carter's.The NITV is Reagan on steroids! And it would cost less than the over $2 trillion dollars President Obama wasted on a "stimulus to nowhere." He gambled on big government and lost. Six years later there is still no recovery for small business or middle class jobs.Like Reagan, I'm betting on the private sector. Government can't save us from this Obama Great Depression. Only the taxpayers, investors and small-business owners can save us. Let the taxpayers keep 100 percent of their income for one year and watch the greatest economic explosion in world history. Watch them start, build and expand businesses, buy stocks, homes, cars and go on a consumer buying binge. This puts the money in the hands of the financial first responders, not government. The people will save America.
- The 0-15-0 Tax Plan. Once we jump-start the economy, we need a plan for keeping it going. My 0-15-0 tax plan is exactly that. It is modeled after Hong Kong, the greatest economy in the world. After the one-year personal income tax vacation, we go to a 15 percent flat tax for incomes – both personal and corporate – over $40,000 (allowing mortgage, charitable and health-care deductions) and a zero capital gains tax. Did you know that our No. 1 competitor in the world – China – has a zero capital gains tax rate? We must match China or lose market share. A zero capital gains tax will motivate an explosion in investments and start-ups, creating millions of jobs.
- The "Angel Investors Tax Deduction." This plan gives investors a dollar-for-dollar tax credit for up to 50 percent of their income tax bill (up to $50,000) for investments in new business start-ups. That includes IPO and secondary offerings for small companies. This isn't for millionaires. It's tailor-made just for middle class investors. Over the course of a decade, any middle class American can invest $250,000 to $500,000 in multiple businesses and build a million dollar nest-egg for retirement.
- Motivate "Reverse Inversion." If we cut the corporate tax rate to that flat 15 percent, job-creating companies across the globe will want to practice "reverse inversion" by coming to America, not running away! We can then encourage U.S. companies to bring all their offshore money back into the USA. Financial experts estimate that American corporations have over $2 trillion dollars parked offshore because of high U.S. corporate tax rates. My plan allows companies to bring their foreign earnings back to America with only a small 10 percent tax/penalty. Companies will rush to take advantage – instantly producing about $200 billion in new tax revenues to be applied to debt reduction. Better yet, $1.8 trillion dollars will be pumped into the U.S. economy. And that's just the beginning.
- The EHPA (Endangered Humans Protection Act). The average energy job in Texas pays about $150,000 per year. These are the kind of jobs that can save the American middle class. Let's take the shackles off the U.S. energy industry. We should be encouraging drilling, fracking, shale, natural gas, clean coal and nuclear energy. This is the opportunity of a lifetime. Because of technological advances, America is in the middle of an energy revolution. If only the Obama administration would take the shackles off, America could become the energy capital of the world. The energy industry has more of a direct impact on middle class Americans than any other issue. Creating good jobs would lower unemployment, boost the tax base, lower the debt and lower energy and electricity bills – leading to increased consumer spending.
- Legalize, regulate and tax "sins" like marijuana and online gambling. This is what we do in Nevada, and the result is we are able to afford zero state income tax and zero business income tax. We should be replicating this model through the USA.
- America desperately needs a GOLD STANDARD. The dollar has lost in the neighborhood of 98 percent of its buying power since 1913 (since the Fed was founded). We need a Gold Standard to back the dollar with something real and tangible. This prevents politicians from spending us into bankruptcy by making spending promises with money we don't have. It also reduces the likelihood of a debt crisis, dollar collapse, or the loss of "world reserve status."
- Repeal and replace Obamacare with a health freedom plan. The economy cannot improve without the repeal of Obamacare. Health insurance premiums are up more since Obamacare started than in the eight previous years combined. First, this is bankrupting middle class consumers. Second, it's a full-time jobs killer and a crummy part-time jobs creator. There can be no good-paying middle class jobs until the regulations and taxes of Obamacare are repealed.
- Seal the Border and Reform Immigration Policy. After the border is sealed with a virtual wall (protected by thousands of drones) allow a path to permanent residency (with work permits), but NEVER citizenship for any illegal immigrant.
- Limit the power of Congress and all branches of the federal government. This starts with term limits and constitutional restrictions on government power and overreach.
That's a brief summary of my "Middle Class Contract with America." I go into much more detail in my book, "The Murder of The Middle Class." This "Middle Class Contract with America" will put the U.S. economy back in high gear, while it puts the American middle class back to work. It will create millions of jobs – just as Reagan's tax cuts did in the 1980s. It restores economic freedom. Most important, it will stop the murder of the middle class and restore the American Dream.