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  • Mr. Speaker and Mr. President: The Way to Save the American Dream

    The day after the election, Speaker of the House John Boehner (R-OH) called on President Obama to join in a bipartisan effort to cut federal spending, including by fixing entitlement programs, and to move to a better tax system that allows the economy to grow and create jobs. The Speaker’s call took up the President’s offer on election night to work with leaders of both parties to reduce the deficit and reform the tax code.

    The Heritage Foundation has a ready-to-go, detailed plan to achieve the goals that Speaker Boehner and President Obama stated. Our plan—Saving the American Dream: The Heritage Plan to Fix the Debt, Cut Spending, and Restore Prosperity—drives down federal spending toward a balanced budget while fixing entitlement programs and maintaining a strong national defense, with tax reform but without a tax hike.

    The New Flat Tax is the key tax reform element of the Heritage plan. The New Flat Tax abolishes the individual income tax, payroll tax, capital gains tax, dividends tax, estate tax, and corporate income tax and instead imposes a simplified, single-rate tax on expenditures of individuals and a single tax on the domestic net cash flow of businesses. The New Flat Tax would tax the amount an individual spends from income, but not any amount the individual saves.

    The universal principle of tax-free individual savings would create a strong incentive for pro-growth, job-creating savings and investment. Similarly, the reduction in business tax rates would spur investment, job creation, and competition. A growing, job-creating economy would generate more income and profits, which in turn would yield greater revenue in taxes paid to the government, enabling the government to reduce the amount it borrows.

    The Heritage plan for Saving the American Dream reflects the key conservative principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense. The Heritage plan contains the detailed actions necessary to implement what Speaker Boehner and President Obama said they wanted to accomplish: cut federal spending, fix entitlements, move to a reformed tax code, support economic growth and job creation, and reduce deficits.

    Americans need a growing economy and more jobs, so Congress and the President should not hike taxes and thereby cut economic growth and kill jobs. Also, Americans cherish their political and economic liberties, so Congress and the President should not expand the size, scope, and cost of the federal government. Further, Americans do not want to burden their children and grandchildren with yet more debt, so Congress and the President should not continue to borrow more and more from the future to spend today. Congress and the President should work to cut spending, taxing, and borrowing.

    To put America on the right path to prosperity and liberty, Congress and the President should turn the Heritage plan for Saving the American Dream, and especially its New Flat Tax, into law.

    Posted in Economics [slideshow_deploy]

    8 Responses to Mr. Speaker and Mr. President: The Way to Save the American Dream

    1. TimAZ says:

      I can't believe after four years of observing Obama's actions as president demonstrating daily his disdain for the American dream that we are stilling seeing articles that suggest that Obama would abandon the ideology that his whole life was created upon. It appears no one has learned anything about Obama. Maybe the truth is just too gruesome for most to bear so they remain with their eye's tightly shut conjuring up rainbows and unicorns all the while blisters are forming all over their skin as the flames now lick at their flesh. Sad. Very sad. This is how the American dream will wither away.

    2. allen says:

      Pass a FLAT TAX NOW,

    3. Robert says:

      If Obama wouldve cut the national debt or even halted it at 10 trillion I'd voted for him even with failing economy but not only did he almost double the national debt, he devalued the dollAr, no new jobs if they use the job rate , with people who are actually out of work, then we're at 14 perc unemployemnet, now he wants to raise taxes and the thing that pisses me off is he keeps saying rich pay a little morE and and can't cut ourway to a better economy, well if he'd paid attention in his Harvard economics class you'd know if you give the rich more money they invest, save it so banks can loan for small businessn and yes a flat tax no taxing for capital gains and businesses don't get pentalized for actually making a little profit, oh no profit iS bad,

    4. Jeff Douglas says:

      Let's say the Flat Tax is the answer to replace the disgustingly tangled web that is our current tax code. Now all we need to do is sell it to a nation of people who were outmaneuvered by the parasites among them in two consecutive elections whereas said parasites reject the personal responsibility that comes with liberty, preferring instead a life of serfdom.

    5. kmyers says:

      Obama has said the exact same things before and has NEVER worked with the Republicans. I do NOT see him doing it now.

    6. Why can't we have reasonableness in government? Give this plan a go and reap the rewards! History is the best judge and will prove this is the best course, fair and just.

    7. sisilia says:

      Flat tax is not going to happen when you have a liberal democratic administration, they are problem starters not solvers. What makes you think free thinkers are disciplined with their spendings, there is a need for moral ethics and that is what our government lacks. This is what happens when governments take control free market, where is the liberty in that.

    8. rebariz says:

      Passage of a flat tax system is a must for the preservation of the U.S.A. as a democratic republic. Cutting Federal and state spending is the next must do. Entitlement reform will be necessary if we are to remain a viable first power nation. The Heritage plan does make sense. The result would be a class war-fare free nation.

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