The Default of the American Political System

When Politicians Fail the People and Believe Their Own Rhetoric - We Need to Offer Tax Models



It is a dark time for all political systems in the world and that is a good thing. Technology has now come to the aid of the people. It is much more difficult for political systems to keep the people in the dark and in the case of America, much more difficult to be an elected Republican or Democrat and do little too nothing in office. Technology has changed the game. The people of most countries can now communicate, organize, express, challenge, and change their political systems with the click of a button. This is fair warning to our elected Republicans and Democrats… the people are on to you. It is important for us to elect politicians that understand our needs and that can be creative problem solvers and not rhetoric barriers. We need to offer them models of change so they can learn how to do their job. Sad… but needed.

Keep in mind American politicians are elected by the people for the people and their duty is to represent the people. Both parties have lost sight of our needs. What are our needs? It isn’t difficult to figure it out. Our needs are pretty much the same for all people, all over the world. Here is a quick list to help our lost politicians.
  • Affordable Housing
  • Affordable Food and Energy
  • Safe Neighborhoods
  • Quality Education K-12
  • Employment and Fair Wages
  • Opportunities to Pursue Happiness
    • Happiness of Family
    • Happiness of Children
    • Happiness of a Better Life Quality
Our politicians actually truly believe they are addressing those things for us. The believe their rhetoric. They also believe we are idiots with the capacity to be fooled as if our needs are like an on/off light switch. Seriously, aren’t you tired of watching different actors in the same roles say the same 5 things to us? Aren’t you tired of them blaming each other while little changes to address our needs as defined above? What are those five things politicians seem to have bit onto like stubborn dog that can’t let go?
  • More taxes (on) No New Taxes (off)
  • More Government (on) Less Government (off)
  • Bigger Military (on) Smaller Military (off)
  • More Entitlements (on) Less Entitlements (off)
  • More Haves (on) Less for the Have-Nots (off) or vise-versa
These are the main themes that all politicians spew not to us but at us. As if we are stupid. What happens when you get grown adults in a room that either want the light switch on or off? You get a bunch of kids fighting and flicking the lights on and off while the other kids are yelling what they think the American people want. Nothing gets done. Our politicians, Republicans and Democrats, have defaulted on America. They have lost touch with the needs of the people they were elected to serve. The can’t let go of the light switch. They can’t let go of their party. They can’t let go of the rhetoric. They can’t help the people of America. It is sad to watch them struggle and even more sad to watch and feel how we suffer while they act like children. It really isn’t that hard to work for the people when you want to work for the people. Our politicians would rather work for themselves and their party.
What is needed to fix this political bickering is for the politicians to have some infrastructure built in the House of Representatives and Senate. Heck all the buildings they roam around in need some remolding. I think the solution to the problem is found in replacing the light switches. They need to remove the standard on/off switches and replace them with dimmer switches. You know the kind you turn up or down until you find the right amount of light. Sort of like a compromise that doesn’t leave the people of America in the dark.
I would have recommend motion switches because the are a bit more energy efficient but I fear the politicians would get confused and not understand if they stood for on or off an issue. If three politicians walked into the House and the motion switch turned on would that mean they all stood for more taxes? The motion switches would lead to politicians diving past switches to add some flamboyance to turning the light on. You would also have some politicians walking past the motion switches at a snails pace to make sure they don’t trigger the switch. I figured we don’t need the embarrassment. Much of the world is already laughing at us because of them. So… dimmer switches.
I used the word infrastructure. Have you noticed politicians ideas for jobs is to say… “let them build roads.” Is that all you and I are good for? Ditch digging and road building? Hmm? Don’t we have a handful of more creative thinkers in America somewhere? A group of men and women that can not only connect the dots but add dots that provide solutions to problems.  I mean somewhere besides looking in the House and Senate. We know the creative thinkers aren’t there. When they can’t think of a solution or compromise, they hold their breath and filibuster or just point and finger and blame. That isn’t so creative. I watched my kids do they until about the age of six. They are able to talk out problems now. Don’t get me wrong, I have to intervene at times and they still argue. But in the end they work it out.
So lets look at this logically. Americans pay taxes. The government collects taxes. Taxes are spent to address the needs of America and the people of America. Please don’t laugh. I’m just saying in theory. I want to keep it simple. Because the other thing the politicians do is over complicate everything to the point we can’t figure it out. Every hear of derivatives. You know where you get a mortgage, then a package of mortgages are put together to be sold, and the parts of those mortgage packs are sold here, and other parts are sold over there. So soon people are investing is some diluted shredded mortgage bundles that no one understands. Yet they are stamped Triple A. I will say that was creative. But in the wrong direction. Maybe the complication is best understood by a 1 volume tax code that has grown into an 8 volume tax code. Volumes to say what? It is hysterical. Search it on line and find some of the most ridiculous deductions and loop holes. Creative again but in the wrong way.
I want to simplify the tax code for all of America quickly. Not because I am right but because sensible alternatives based on what is known are not difficult to create and my alternative is just an example. And mostly because we aren’t idiots and really understand that when we go to war, have an aging population, have a population of poor, not so poor, doing pretty good, rich, and super rich… we need to both tax and spend. Yes compromise. That is the dimmer switch.  And because we are not idiots we know that taxing comes in 100 different forms and from 50 different angles. We also know you can’t spend what you don’t have. We understand that corporations need to make money and be competitive. We know the poor need entitlements. We know that we need entitlements and standards of living. We know the super rich have way to much money that really doesn’t trickle down to the public.
We also know that America is only as strong as the people and if we feel neglected, abused, and get pressed to fight for the needs of our families and our rights… chaos will grip America. Nobody wants that but all nations fall, in this way, when the people are unhappy. That is where the politicians are taking us and they are blind. The more they become disconnected from the people the louder the people will yell. And unfortunately in this day and age, all people won’t organize using technology to protest peacefully. Some will be violent. I hope our politicians snap out of their own rhetoric fantasy worlds.
Simplifying the American tax code is easy. You pay. You don’t deduct. Why? Because we are smarter then that. The 8 volumes of tax codes benefit the wealthy and corporations. They pay… then they deduct. And the general confusion sets it as to what do they pay? What did they pay? What did I pay? Did I pay the same? Is this fair? Are we all paying a fair share? Soon we get a headache and move on to taking care of our family because that is what is most urgent and important to us.
We should all pay the same tax rates. Here is the caveat. In order to meet the needs of the people as I generally defined above, you need to have an income. In America or any nation,  X amount of income is needed to live at a minimum accepted level of decency. That minimum you need to live decently, you have to spend. The yearly minimum to live in America decently is $20,000. Yes, I set a number. All Americans can earn up to $20,000 and pay no federal income tax on it. If you make 22,000 a year, $50,0000 a year, or $2,000,000 a year you get the first $20,000 without a federal tax. It is going to be spent to live.
  • No Federal Taxes on the First $20,000 of Earned Income
State taxes would follow the same rule using the first $15,000.  The reason being that the State you live in provides local benefits to you that you will more easily benefit from them in some way such as local roads, education, transportation or the like.
  • No State Taxes on the First $15,000 of Earned Income
This tax change allow individuals and family to have more of their money to spend as they need to address their basic needs. Why tax all income and then give it back in forms of entitlements? Why take it and then let the bureaucracies deduct chunks of it before it is sent back to the people? Use some logic on our tax codes. For every dollar the government takes, a large portion of that dollar is lost to administration. Let the people keep every dollar of the first $20,000 they earn. Every person in America has this right. Very simple. Very powerful. Or we could just continue to tax as is and then spend a $100,000,000 in administrative costs to issue refunds to people. Oh wait we did that. That was a fine way to waste the money to only give the money back.
I am going to address federal tax changes from this point forward. This is based on portions. All people pay the same amount. You would pay a 13% federal tax on the first $250,000 earned after the initial $20,000. You would then pay a 16% federal tax on the next $500,000 after $250,000. You would pay an 18% tax rate on all income earned after the next $500,000. It is best looked at like this
All Americans would calculate their federal taxes like this:
A person earning a $93,000 salary
0 – $20.0000            Tax Rate 0%  on $20,000       They get $20,000          Federal Tax 0
$20,001-$93,000     Tax Rate 13% on $73,000      They get $63,510          Federal Tax  $9,490 (up to 1st $250,000)
                                Total $93,000 Salary               You Keep $83,510        Federal Government Gets  $9,490
A person earning a $810,0000 salary
0 – $20.0000            Tax Rate 0%  on $20,000       They get $20,000          Federal Tax 0
$20,001-$270,000   Tax Rate 13% on $250,000    They get $217,500        Federal Tax $32,500 (1st $250,000)
$270,001-$770,000 Tax Rate 16% on $500,000    They get $420,000        Federal Tax $80,000 (next $500,000)
$771,000-$810,000 Tax Rate 18% on $40,000      They get  $32,800         Federal Tax $7,200 (all income there-after)
                                Total $810,000 Salary             You Keep $690,300     Federal Government Gets $119,700
This tax model doesn’t allow for deductions. You don’t need deductions and wasted calculations when you set a respectable flat rate. Why tax someone at a 25-30% rate or higher and then allow a mess of messy deductions that ends up reducing the amount of taxable income but ultimately ends up the same, as if you would have just picked a lower flat rate to begin with and just taxed earned income with no deductions? I don’t know. Keep it simple. Of course arguments will break out over what earned income is but at least this simplifies it.
Now comes the question of raising or lowering income tax rates. Since all Americans are now paying the exact rate we are all treated equally. Raising or lowering portions of this model requires equal changes across all the ranges. If you lower the 18% rate by 1% to 17% then the 16% rate becomes 15% and the 13% rate becomes 12%. Any adjustment is equally distributed across all fields.
All American don’t pay income taxes but all Americans spend money. This is a fundamental flaw in our current tax system. You can see my model significantly reduces the income tax rates to give Americans an equal tax rate and it allows them to keep more of their money to spend. With this model, all Americans get more money to spend and use as they see fit. A flat federal sales tax is needed. A flat federal yearly adjustable sales tax is needed. A flat yearly adjustable sales tax that affects every single American that spends $1 is needed. A flat yearly adjustable sales tax that affects every single American that spend $1 and is tied to our deficit is needed. Why? If the government does a great job the flat tax can be lowered and the whole population benefits. If the government does poorly, engages in wars, fails to manage trade deficits, can’t make America enticing to job creators, the whole populations pays for their failures. We pay in real time for real problems our government can’t solve. There is no borrowing today and putting it off until re-election time.
We are responsible for electing politicians. We are responsible for holding them accountable. They are responsible for stepping up and remember they represent the basic needs of the people and are not elected to support the Republican or Democratic parties. They are not elected to keep a job for themselves. We are too smart, well educated, and have technology to communicate as masses of angry or happy citizens. The American politicians have defaulted on America because they can not see or hear us. We need to make ourselves heard. We need to bring them ideas. We need to tell them what to do and get them out of the game if they don’t know how to play. I look forward to watching the people take back the America we all deserve. The same technology that changed Egypt’s political system will be used to change ours. We are now in a new era of politics where what a politician does is more important then what they say they will do. We see them all now and we know how to tell all our friends about what we see, what we want, and what we should do to get it.