Rebuilding Our Economy

When businesses go back to work, they will not need all former employees depending on the industry. Possibly 1 in 5 people will be out of work.

Before the pandemic the middle class was already suffering. 44% of workers are low wage with median incomes of $10.22/hour ($18,000/year) and 3 of 5 are the only earner in their families. They are scrapping by or working multiple jobs to support their families.

The way to grow the US economy is focusing on helping the middle and lower classes. Big businesses cannot employ everyone out of work. State and Local governments are low on funds. Most new jobs will be created by small and one person entrepreneurial businesses. Incentives, aid and opportunities must be aimed here to grow wealth and consumer spending.

Remove Red Tape

Simplify creating, registering and licensing businesses. Takes significant time just to get started. That time is needed to find customers and do work.

Collect Income Taxes and Social Security Weekly

Self employed income varies wildly when and how much you earn. Currently payments are made quarterly. When self employed had to guess withholding high every quarter to avoid penalties. Difficult for people with little savings. Collect weekly and calculate how much. 90%+ of people file standard deduction taxes. Modern computer networks can calculate this easily.

Give Incentives to Work

If you work part time on unemployment, you lose 100% of your benefits for every dollar earned. Social Security only cuts 50% above $1,470 per month. The more often someone work, the more motivation and skills to earn more.

Incentives for Hiring Full Time

Businesses prefer part time because they don’t have to pay benefits. Find a way to fix that.

Health Care for Self Employed

Very expensive middle and older workers. Typical is $500-$1,000 per month. Find a public-private partnership to insure blocks of workers. Medical illness causes ~2 of 3 bankruptcies. Everyone needs to be covered.

How to Pay

Income taxes will have to increase. Capital gains should increase and the definition should go back to investments over 3 years.  Neither of those is enough. A consumption (VAT) tax will be necessary like most other countries do. BTW ‘Tax the Rich’ is a fantasy, however they should get less deductions under current tax rates.

Rebuilding the economy is complex task. Too much spending or debt may break the system or value of the dollar. Compromise and stepping up to challenges is what is needed. Write your congressmen and senators.