Friday, September 12, 2014

How to balance the deficit

We should have a 0% (ok I hear you and will settle for 10%) corporate tax and a 3% VAT and extra 2% for luxury goods.

Advantages:
- All the corporate golden geese will flock back.
- Our dividends will not be taxed twice.
- Corporations will plow back the money for investment and hence ignite employment.
- VAT discourages unnecessary consumption and spending. The 2% surcharge for the rich is fair and simple.

The above numbers are arbitrary. We need to set up a budget and require the government to enforce it.

You may say we do not have money to run the government. It is simpler than expected.

- A small and efficient government. 
If you're one of the lazy government employees surfing the net and waiting for the 4 pm stampede (after the two-hours lunch followed by your nice afternoon lap), you know exactly what I'm talking.

- Why the government employees can retire at almost full pension at the early age (comparing to corporate employees) is just beyond my comprehension.

- Stop being the world police. We've more problems to solve at home.

- Cut down the generous welfare and ask the able to get off the couch. Watching TV all day long for the rest of your life is boring and not good for your health. Remember when we run out of money to give you, the host and the parasite will die together.

- Prosecute the welfare and disability cheaters.

- Prevent illegals to come in by prosecuting employers. If there are no jobs, they will not come. We do not need all those fences and patrols.

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If we have enough income, we may abolish the income tax. Bad for Turbo Tax but good for us (at least wasting one day in preparing the tax).

No income tax encourages working.
VAT encourages less spending.

A win-win situation.

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