To: President Donald Trump, Governor Gavin Newsom, The United States House of Representatives, and The United States Senate
JUBILEE PROGRAM for Economic Recovery
I propose a bold, 6-step approach to solving the economic and employment problems we’re facing now:
1) Declare a 1-year moratorium on collection of FICA (federal payroll) taxes for all employers and employees. This will, in effect, give every employer a tax break equal to 7.65% of their payroll, and every employee a 7.65% “raise.”
2) After the first year, start phasing the tax back in, as follows: Increase the tax by 2% each year (each, for employer and employee) for 4 years, while also raising the social security limit (the amount of gross annual income against which the tax is levied) by $50,000 each year.
3) After four years, abolish the social security limit, so FICA taxes are collected on all earned income (remember, it’s only 15.10% of annual income up to $110,100 now; under my proposal, after 4 years, it’ll be 16% of all earned income).
4) Somehow give strong incentive for people to invest additional funds on their own toward their retirement.
5) For five years, give a tax deduction for 100% of the interest paid on purchases of big-ticket items manufactured in the U.S.
6) Beginning in year 6 of the interest deduction, reduce this deduction by 1% per year until it disappears, leaving only the home mortgage-interest deduction.
A possible seventh step might be to somehow penalize companies which outsource jobs to other countries, and reward those which insource them.
1) Declare a 1-year moratorium on collection of FICA (federal payroll) taxes for all employers and employees. This will, in effect, give every employer a tax break equal to 7.65% of their payroll, and every employee a 7.65% “raise.”
2) After the first year, start phasing the tax back in, as follows: Increase the tax by 2% each year (each, for employer and employee) for 4 years, while also raising the social security limit (the amount of gross annual income against which the tax is levied) by $50,000 each year.
3) After four years, abolish the social security limit, so FICA taxes are collected on all earned income (remember, it’s only 15.10% of annual income up to $110,100 now; under my proposal, after 4 years, it’ll be 16% of all earned income).
4) Somehow give strong incentive for people to invest additional funds on their own toward their retirement.
5) For five years, give a tax deduction for 100% of the interest paid on purchases of big-ticket items manufactured in the U.S.
6) Beginning in year 6 of the interest deduction, reduce this deduction by 1% per year until it disappears, leaving only the home mortgage-interest deduction.
A possible seventh step might be to somehow penalize companies which outsource jobs to other countries, and reward those which insource them.
Why is this important?
I want to see our American economic make a turnaround