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GURNEE, IL, October 29, 2011 /24-7PressRelease/ -- Wall Street protests will not reverse the disturbing trends that have transitioned the American Dream into the American Nightmare.
Job creation can rapidly be achieved with significant monetary easing and long term economic growth would be assured.
What is needed is a comprehensive plan to create an avalanche of new jobs by restoring the manufacturing sector of the U.S. economy. The first step is to institute an ongoing program of monetary easing and utilizing this cash to secure Education, Social Security and Medicare.
The second step is to attack the problem of crumbling infrastructure by a systematic program of creating a twenty-first century infrastructure to secure the future of our children and grandchildren.
Reduction of the debt will not bring our economy back to life but will in fact strangle it.
The Wall Street protestors do not have a plan and will therefore fail.
I offer the following changes to Tax Laws as a third step to level the playing field.
1. The Ben and Jerry executive compensation plan. Compensation for top paid corporate executives will be taxed based on the salaries of the bottom 50% (can be 70, 80 or 90) of employees.
This could easily create a 45% minimum alternative tax on all income that is more than 2000% of that average employee wage in the company. Reinstate an 81% minimum alternative tax on income of executives that is more that 10,000% of average wage of corporate employees and an 88% rate when it is over 20,000%.
To encourage preservation of American Jobs this will hold true for both U.S. employees and employees in countries like China. In essence selling out the American worker will cost top executives financially.
Compensation for executives that is over 2000% of average wage should be considered as corporate income. Shareholders can decide whether they want to finance "Lifestyles of the Rich and Famous". It would be taxed as excessive pay.
This should include all income including options and stock grants, profit sharing, and executive perks.
2. Corporate taxes should increase for companies that export jobs and decrease for companies either import jobs or create new jobs. This should be applied 10 years retroactively and spread over a period of ten years.
3. Corporate cash that is sits idle should be taxed at 10% per year. This would encourage companies to utilize cash reserves for growth and research.
4. Long term investments in company infrastructure and research should be treated more favorably. Tax free status for dividends and income would reward the shareholders who actually own the company. Short sighted corporate executives have sold out the country and the American workers in exchange for excessive compensation.
5. Tax law should limit accounting, consulting and legal fees that are tax deductible. Currently spending 20 million dollar to save 5 million in net taxes makes financial sense to some companies. By limiting the maximum amount of company's ability to expense these cost with tax savings to 20% of total tax there will be more incentive to be productive.
6. Income is income. Personal income should be taxed at the same rate whether it comes from salary, capital gains, interest, etc. Taxes must be progressive. The Warren Buffet rule that President Obama is pushing would help achieve that goal. Base tax rates and minimal alternative tax rates should increase at 1 million annual income, 5 million annual income, 10 million, and 25 million and above should be subjected to maximum tax rates.
7. The tax rate ceilings must be indexed to inflation.
8. Inheritance tax laws should protect family farms, small and privately held business and personal items including both primary and up to two secondary residences. Inheritance taxes on estates of less than 10 million dollars should be eliminated. Estate taxes, after 10 million deduction should be set at 12% for estates from 10 million dollars to 50 million dollar, 22% for estates from 50 to 100 million dollars with higher rates reserved for only the largest estates.
9. Congress and congressional employees should receive an immediate 100% increase in salaries indexed to inflation and new ethic laws with strict penalties for unethical behavior should be instituted. The judicial branch of government not Congress should administer criminal and financial penalties against congressional cheats.
10. All government employees who move on to corporate positions must expose their taxes and personal finances to said judicial panels to assure against unfair use of connections. The same rule will hold true for government employees who later work in fields related to their government jobs.
Banking and financial institutions that utilize government fund for operations, reducing rates etc must have an open book policy. Companies that do not use federal float will be exempt.
Monetary easing will create a cash spigot, which should be used to reduce the national debt. The loss of manufacturing has been due to currencies in China, Japan and other countries being kept artificially low relative to the U.S. Dollar. A weaker dollar will massively increase exports but will significantly increase the costs of imports encouraging the return of manufacturing to our shores. Jeffery Immelt, Chairman of GE and Obama Job Czar has defined a weaker dollar as key to producing American Jobs in a Sixty Minutes interview with Lesley Stahl.
Wall Street moguls fear that their gains of the last decade will be severely reduced by monetary easing. The answer will be to spend those dollars before they lose value.
Oil imports will increase rapidly, especially in the short term. Reduction or elimination of taxes on oil and petroleum products will offset these changes. Higher oil prices will lead to increases in both oil and gas exploration and utilization. The EPA must work with industry to make it both profitable and safe for the environment.
Alternative energy will become financially sound as petroleum prices drastically increase.
Inflation will increase but with explosive economic and job growth tax revenue will begin an exponential growth. This can then be used to control inflation after avoiding a double dip recession leading to depression.
Dr Ira L Shapira is an author and section editor of Sleep and Health Journal, President of I HATE CPAP LLC, President Dato-TECH, and has a Dental Practice with his partner Dr Mark Amidei. He has recently formed Chicagoland Dental Sleep Medicine Associates. He is a Regent of ICCMO and its representative to the TMD Alliance, He was a founding and certified member of the Sleep Disorder Dental Society which became the American Academy of Dental Sleep Medicine, A founding member of DOSA the Dental Organization for Sleep Apnea. He is a Diplomate of the American Board of Dental Sleep Medicine, A Diplomat of the American Academy of Pain Management, a graduate of LVI. He is a former assistant professor at Rush Medical School's Sleep Service where he worked with Dr Rosalind Cartwright who is a founder of Sleep Medicine and Dental Sleep Medicine. Dr Shapira is a consultant to numerous sleep centers and teaches courses in Dental Sleep Medicine in his office to doctors from around the U.S. He is the Founder of I HATE CPAP LLC and http://www.ihatecpap.com Dr Shapira also holds several patents on methods and devices for the prophylactic minimally invasive early removal of wisdom teeth and collection of bone marrow and stem cells. Dr Shapira is a licensed general dentist in Illinois and Wisconsin.
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