| The
10-Point Elder Plan
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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Laurence A. Elder & Associates,
Suite 803, 10061 Riverside Drive,
Toluca Lake, CA 91602
©2001 Larry Elder & Associates
The views
expressed in this article are the opinion of the writer and this website
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