Reduce Federal Government Spending

The economic policy of the federal government should focus on economic growth and prosperity, which can best be fostered by reducing the size of government. Government spending, not taxes, is the real burden of government to the economy. I want to significantly reduce federal government spending, not just reduce its rate of growth. I support the cuts to discretionary federal government spending as listed on the Cato Institute’s website. This website lists over $1.175 trillion in annual savings, including elimination of the Departments of Education, Housing & Urban Development, and major expenditure reductions in other departments.

Fundamental Tax Reform

I endorse the Hall-Rabushka Flat Tax, which will reduce Federal tax rates, greatly simplify our tax code and foster great entrepreneurship in the US..

If, after Federal spending has been cut, the 19% tax rate proposed by Hall & Rabushka produces a Federal surplus, the tax rate should be cut to what the Congressional Budget Office thinks the tax rate that would balance the Federal budget would be.

Health Care

Health care is not a right, because it requires the talents and resources of other people. The federal government is not empowered by the U.S. Constitution to provide health care. Health care for the poor should be treated as a welfare issue and handled by the states.

I would repeal the Affordable Care Act. I agree with John Goodman of the National Center for Policy Analysis, who proposes that, instead of our current system of numerous subsidies and tax breaks affecting health insurance, there should be refundable tax credits to individuals that are available only if health insurance is purchased. A tax credit for $2,500 for every adult and $8,000 for every family of four would replace the subsidies in the Obamacare exchanges and substitute for the regressive way employer-provided coverage is subsidized.

We must move away from our system of employer-based health insurance, which would happen with the Hall-Rabushka Flat Tax, as employee fringe benefits would not be deductible for businesses. We need deregulation in the delivery of medical services and a more consumer-driven health care system, which will not happen until Third Party Payers become less dominant in US health care. Third parties financed 86% of health care in 2001, up from 56% in 1965. We should allow interstate purchases of health insurance and move the public away from first dollar or small co-pay coverage to purchases of catastrophic health insurance.

The plan to replace Obamacare should have choice for consumers, fairness, universality, portability, transparency and real insurance.

Social Security

The entire concept of Social Security as “social insurance” is ridiculous. Aging is not an insurable risk. We all get older, and it is “better than the alternative,” as the saying goes. And, people qualify for Social Security regardless of their current income level. But, probably the most important problem with Social Security is that people have no property rights in future Social Security payments. Congress can change Social Security payments at any time. What defenders of the Social Security system are really saying is that they would rather forcibly extract Social Security taxes from workers, including teens and parents raising families, instead of having older people (who tend to be wealthier) provide for themselves after a lifetime of work.

I support “Cato’s 6.2% Plan for Social Security.”