Readers of this blog are familiar with my nagging asserting repeatedly that Communism doesn’t work. John Mauldin and Stephen Moore have come up with A Six-Point Plan To Restore Economic Growth And Prosperity. In brief, the 6 are:
- Streamline the federal bureaucracy.
- Simplify and flatten the income tax.
- Replace the payroll tax with a business transfer tax of 15%, which will give lower-income workers a big raise.
- Provide certainty by keeping tax rates low through a tax-limitation constitutional amendment that would require future tax increases to be passed by 60% of the Congress, in combination with a balanced-budget amendment.
- Roll back the regulatory state.
- Drill for America’s domestic energy and use the royalties on federal lands to retire the debt and/or fund needed infrastructure repair instead of raising taxes.
While these are specific to America, countries in our hemisphere would benefit from similar incentive structure measures, if their institutions would also ensure a framework of rule of law and true commitment to ending corruption.
Mauldin and Moore address the real source of economic progress: the incentive structure. Read their full article here.