Fiscal policy originates in, and is the responsibility of, the Congress of the United States. Sound fiscal policy has been in short supply for most of the last 80 years or so. If elected to the United States Senate, I promise to champion policy that will reduce uncertainty for businesses and citizens alike.
If elected, I will seek from my colleagues a moratorium on increased spending by freezing spending levels at the current fiscal year level. This eliminates baseline budgeting, which allows spending to increase based more on formula than demand or need. The national government, with a frozen spending level, would then have to deal with the effects of inflation, quantitative easing and all the other negative actions that every business and citizen must deal with every day. Government managers would actually be required to manage their budgets instead of knowing that every year they would enjoy increases. Spending levels should be frozen until such time as revenues exceed spending. Yes, a balanced budget would be the incentive for all members of government to allow government spending to increase.
Tax reform is another important element of gaining control of the current fiscal mess. If elected, I would propose and advocate for a transition from the current personal income tax system to a Fair Tax. The Fair Tax is a national sales tax that taxes consumption, not production. I have examined the numbers and am satisfied that this system would provide a robust revenue stream that would incent Members of Congress to ensure that the economy stayed on sound footing. The stronger the economy, the more revenue comes into the federal coffers.
Additional tax reform should be done on the corporate side. If elected, I will champion reducing corporate tax rates to 10% from the current 35%. The United States taxes its businesses at the highest level in the industrialized world. Such a tax system pushes businesses to take their work off shore. Thus, we lose out on those jobs and the taxes that would be produced at home. This simple change in tax code would super-charge the economy.
One additional tax reform would be to allow companies to repatriate their overseas income back to the United States at the same 10% rate suggested above. With that revenue coming back to America, the economy will be on a stronger footing and Americans will have less uncertainty in their lives and more money in their pockets.