The first of these issues is the faltering economy. Since 2009, there has been no long-term national recovery as full-time jobs are being replaced by part-time positions. While now would not be the time to get into specifics, the Republican National Committee needs to educate the public on what issues the party is willing to address to stimulate the economy and put more Americans in full-time, better paying positions. Within the discussion of the state of the economy, the party could address repealing of the Affordable Care Act, tax reform that would include personal and corporate taxes, incentives to bring back heavy manufacturing to the nation, addressing trade imbalance issues with China and other nations, and reducing the national debt. All these parts of the central issue – getting the American economy growing in the right direction – could easily be handled through an aggressive marketing campaign. Yes, the Democratic Operatives will try to destroy or mutilate the message, but that is part of the political process in America. Use their criticism as a means to address their issues and objections with a strong resolution to educate the public on what real solutions look like. Capitalize on the left attack machine.
During conversations with people in the local tri-state area, the conversation always turns to the situation faced within the tri-state that includes the issues of reforming the nation’s tax code. I am often asked how the flat tax or even lowering the tax rate would benefit anyone else than the wealthy and big business. I am also confronted with the charge that the wealthy are not doing their share or spending enough money to stimulate the economy. At the heart of the issue is a fundamental misunderstanding of how a free-market economy works and another misconception about how the use of credit by the middle and lower classes does not stimulate the economy to the extent many claim. The first of these that must be addressed is the federal corporate tax rate, as many Americans simply do not realize its importance. Right now, the federal tax burden for corporate America is at an average high of 39.0%. To place that in its proper prospective, Canada has a national corporate tax rate of roughly 15%, France has a national corporate tax of 33.33%, and Mexico has a national corporate tax rate of 28% (source: Wikipedia).
Making the federal corporate tax rate competitive with Mexico and Canada would reduce the tax footprint within the gross revenues of America’s corporations. As it currently stands, large-scale manufacturing has been steadily moving overseas to take advantage of nations with lower tax rates, lower or no minimum wage requirements, and other benefits offered to entice the American entrepreneur into moving operations into their nations. Although these overseas nations have lower corporate tax rates and very low minimum wages (if any wage requirements), it is still a win for the local community. The earned wages stimulate the local economies through spending and the wages add to the national economy through income taxes. While I am not advocating the abolishment of minimum wage requirements, corporations continue to move overseas to reduce operating expenses to be more competitive on the world stage. Corporate tax reform could allow these corporations to remain American, hiring American employees, and the difference in tax revenues would be replaced by the taxed earnings of the workers. The bottom line is that an American who is employed pays income and sales taxes whereas an out of work American pays nothing. Therefore, the political party that has any hopes of winning the minds, the hearts, and the votes of the American citizen must be prepared to reform corporate taxes as a means to encourage industrial and corporate growth.