Help Make a Political Revolution? - OK, Here It Is!
3/27/2015: Elizabeth Warren and West Virginia's Joe Manchin proposed expanding Social Security benefits around midnight -- and it was voted on by the full Senate around 3am! The number of senators on the record for this big idea jumped from 7 to 42 -- literally overnight. (Maybe Elizabeth Warren and Joe Manchin ought to run together as President and Vice-president candidates? Whoever runs on whatever side, the National Employment recovery Act (NERA) and Bring Jobs Home Act (BJHA) idea could form a popular campaign basis!)
LET'S FIX THIS ONCE AND FOR ALL!
We must take care of our own affairs first. We can be of no help to others if our own house is in disorder, especially in this era of global economic uncertainty.
The key to keeping Social Security and Medicare solvent is to remove the "short circuit" in FICA revenue caused by jobs being off-shored. As well off-shoring our jobs is hurting younger Americans and hinders our ability to pay off the deficit. We can not help others if we are unstable ourselves.
This four-pronged idea brings in the revenue to fix Social Security and Medicare by removing the "short circuit" in FICA revenue, pays down the deficit and helps educate the next generation. It is a game plan that uses new revenue sources and seeks to minimally disrupt existing revenue flows.
Signature Needed: Enact the National Employment Recovery Act and revive the Bring Jobs Home Act.
- http://www.facebook.com/NationalEmploymentRecoveryAct (can post comments here)
Additional revenue from the four pronged approach (and others) I mention below. Considering this additional revenue as a single pool here are my suggested ways to divvy it up, based on liquidating shortfalls and restoring solvency being taken care of first. Note that this excludes existing revenue sources and is "event" rather than "time" driven.
PHASE I (INITIAL)
- 1/2 to pay down the deficit to get it under control
- 1/4 to pay off Social Security IOUs
- 1/4 to provide educational needs for the next generation
PHASE II (assumes deficit paid off at least 75%)
- 1/3 to pay off deficit remainder
- 1/3 to pay off Social Security (and Medicare) IOUs
- 1/3 to provide educational needs for the next generation
PHASE III (assumes deficit liquidated, assumes Social Security IOUs paid off and more jobs increase FICA revenue)
- 1/4 to insure Social Security (and Medicare) stay solvent; surplus funneled into individual tax reduction
- 1/2 to provide education needs for next generation
- 1/4 for individual tax reduction
PHASE IV (Ultimate objective; assumes Social Security and Medicare now solvent and financed through FICA revenue, assumes no deficit and hopefully a surplus)
- 1/3 to provide educational needs for next generation
- 1/3 for individual tax reduction (low income citizens should now see ZERO tax, high income citizens smaller amounts)
- 1/3 to build up a surplus, for buffering the treasury for emergencies, for to-be-approved other spending, for corporate tax reduction.
HOW TO PAY?
First see my comment to "Saying No to Social Security - You can opt out, but should you?" at http://rncox.newsvine.com/_news/2015/01/25/28875445-think-carefully-before-choosing-to-opt-out-of-social-security-a-four-fold-solution
THE SIX ECONOMIC PROBLEMS TO BE ADDRESSED:
- Uncertainty in the long-term solvency of Social Security and
- Uncertainty in the long-term solvency of Medicare due to the "short-circuit" in FICA revenue;
- The increasing national deficit and
- The reduction in well-paying living wage middle class jobs;
- Stagnant or declining educational standards insufficient to properly equip the next generation with the skill sets required to meet future economic requirements, all of which are resulting in:
- The "watering down" of the American Standard of Living to a global substandard as opposed to the elevation of the global standard to an American benchmark.
The National Employment Recovery Act (NERA) works by giving the Federal Reserve another tool to impartially set actively monitored "free trade brackets" for overseas goods and services (including oil and gas development) to keep them near a fair cost of what they would cost to produce here. This stifles foreign currency manipulation and unfavorable foreign subsidies. (See petition for details.)
The Bring Jobs Home Act (BJHA -www.bringjobshomeact.com) would prevent U.S. companies relocating to another county from deducting their moving expenses and provide a 20% tax credit for a company to eliminate its foreign operation and expand its U.S. operations. From WV Senator Manichin on the Bring Jobs Home Act: "As Senate bill S2.569 this failed on a 54-42 vote January 14, 2013, needing 50 votes to pass." So BJHA and NERA are two separate tools for achieving the same goal, the economic recovery of our country.
Supporting the need for NERA and BJHA is a highly relevant article, NYT explores “The Vanishing Male Worker”: (http://www.nytimes.com/2014/12/12/upshot/unemployment-the-vanishing-male-worker-how-america-fell-behind.html) "There are about 10 million prime-age men who are not working, but there are only 4.9 million job openings for men and women of all ages, according to the most recent federal data. It has become hard for men to find higher-paying jobs. They're not working because (the jobs left are) not paying them enough to work." Much of what is left are low-paying service jobs originally meant for such types as high school or college students looking for off hours or summer part time supplemental work and not primary income. Hence the battle of minimal wage, which while it may help those in these jobs it will reduce the availability for new people seeking job experience.
Then this important third component to the solution (which works with NERA and BJHA by the way):
Establish a national severance tax for all petroleum products exported overseas. It is projected the USA will have more oil and gas than the Arabs with the new technology being used and so this could mount into the $BILLIONS. Use the revenue FIRST to pay down the national deficit, THEN along with NERA revenue to pay off all Social Security IOUs. Then to lower the nationwide individual tax burden and to properly equip the next generation with the skill sets required to meet future economic requirements (e.g., restoring the "High" in public high school education to bring it up to a two year non-specialized college/technical level). This severance tax also has the desirous effect of encouraging keeping our oil and gas products here to use in the USA rather than shipping them overseas.
Plus, add a transport/conveyance tax to projects like the Keystone XL pipeline based on units of medium moved and use it the same way to lower our deficit and to soften objections.
Concerning President Obama's free community college idea:
President Obama's suggestion of providing free two year community collage is a very good starting point, but ultimately we need to integrate that into our high schools (making it what some refer to as "prep" school). Drop the subject matter of grades 10, 11, 12 back to grades 7, 8, 9; then teach the two year junior college curriculum over grades 10, 11, 12, stressing students discovering where their aptitudes are along with private-public partnership work-study programs during summer months. Thus when a student graduates he/she has broad exposure to career possibilities and a firmer idea of what they want to do next in their life, be it full college or vocational, with the time and cost of remedial education largely eliminated.
Feel free to network this around. I am an Independent by the way, which lets me talk to both sides :-)!
http://www.linkedin.com/pub/11/75/829 <= my professional profile
Independent member, WV Senator Manchin's Project Weirton task group (http://www.cityofweirton.com/projectweirton.htm )