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- Ten Point Elder Plan
- by
Larry Elder
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1)
Abolish the IRS
Pass a National Sales
Tax--Also known as the "Let's Make Tax Lawyers
and Lobbyists an Endangered Species Act."
A simplified tax code gives lobbyists little
to lobby about. A low tax rate spurs people
to work harder without resorting to schemes
to "shelter" income. At the turn of the century,
government took 10 percent of the national
income. Now it takes nearly 40 percent. Low
taxes means higher productivity and greater
job creation. Let's welcome any move to reduce
our tax burden, whatever form it takes.
2) Reduce Government by 80 percent
Less than 2 percent
of Americans are farmers, yet the Department
of Agriculture adds still more bureaucrats.
And what exactly does the Department of Commerce
do? Do we need the Small Business Administration?
Amtrak? The Tennessee Valley Authority? Department
of Education? Before 1950, the government
largely stayed out of the housing business.
Now we have housing projects in all of our
major cities. They have become sewers of crime
and drugs. The government, an absentee landlord,
couldn't care less. The private sector can
build housing more cheaply, with an incentive
to maintain the property and screen tenants.
3) End Welfare, Entitlements and Special Privileges
Welfare for the poor
works out to a national average of $12,000
to $13,000 a year (cash and non-cash) per
recipient. Why work at minimum wage? Why worry
about impregnating someone when the government
shields you from financial responsibility?
But welfare for the non-poor, or entitlements,
are five times as bad. This includes Social
Security (the average recipient has put in
fifteen cents for every dollar he or she takes
out), Medicare, tuition tax credits, farm
and dairy subsidies, tobacco subsidies, as
well as government ownership or control of
airports and utilities.
4) Abolish the Minimum Wage
A low-paying job remains
the entry point for those with few marketable
skills. The minimum wage hurts the so-called
hard-core unemployable by forcing an employer
to pay more than the fair value of labor.
Every time the government raises the minimum
wage, thousands of entry-level jobs get destroyed.
5) Legalize Drugs
Legalization does not
mean approval. America spends at least $20
billion a year to fight a losing battle against
drugs. (Research by William F. Buckley places
America's direct and indirect costs of this
"war" at more than $200 billion a year.) Experts
say that worldwide, the annual drug trade
may be as high as $500 billion! "Just say
no" ain't gonna stop that. The drug trade
provides an economic incentive for children
and teens to drop out of school and earn fast
money. It accounts for 50 percent of all street
crimes and perhaps 30 percent of the prison
population. Tax drugs, and use the money for
drug treatment and additional police protection.
Drug legalization would free up prison spaces,
vacancies that could be used to lock up violent
criminals. What about the harm to society?
Drug abuse would have to increase well over
fivefold to match the deaths caused by cigarette
smoking (allegedly 400,000 a year).
6) Take Government Out of Education
Before the mid 1800s,
elementary and secondary education (except
for slaves) was largely parent financed. Today,
taxpayers spend more than $6,000 a year per
student, more than virtually any other country,
including Japan. With what result? Poor test
scores, high dropout rate, kids incapable
of filling out employment applications. Why
can't the private sector assume this responsibility?
Let's cheer anything, including vouchers,
that takes us in this direction.
7) Drop the Davis-Bacon Act
This little-known act
compels contractors bidding on government
jobs to pay union wages. This cuts out competent,
non-union workers willing to work for less.
This hurts minorities, many of whom were for
years discriminated against by unions.
8) Eliminate Corporate Taxes
The government taxes
corporate profits and re-taxes the dividends,
taking money otherwise used to reduce prices,
pay higher dividends, pay higher salaries,
or invest in research and development. More
corporate investment means more jobs.
9) Charity from People Not Government
During the 1980s, the
"decade of greed," charitable contributions
by corporations and private citizens increased
by at least 30 percent! Why? People had more
disposable income, paid fewer taxes, and therefore
gave more away. Americans are among the most
generous people on Earth. But people want
their money to go to people and organizations
that they choose and trust.
10) End Protectionism
How many people know
that Japanese trucks and minivans cost $2,000
more due to import tariffs? Government-mandated
"price supports" force consumers to pay more
for milk. Government goodies for the tobacco
and sugar industries stiff consumers. Congress
imposes a mind-boggling array of rules and
regulations to protect declining, inefficient
businesses, while taking money away from new
ones.
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