My Proposals and How They Affect You
A neighbor sent an email saying he agreed with most of my positions on Gibson4congress2012.com. But he wanted to see how my proposals affected him: "Although I think I make a good living, we all can’t be CEOs and COOs." Fair enough. Keeping in mind that many people living here make a living working either directly or indirectly for the government, here's how I think my proposals will affect the average voter and family in the 11th Congressional District.
CHANGES
- The goal of a smaller federal government won't be achieved overnight but starts at the top with fewer political appointees and fewer Congressional committees resulting in reduced overhead and more efficient services.
- Fewer federal employees as a result of retirement and attrition means current federal employees will find a more dynamic work environment that focuses on change management and implementation. It also means that salaries can increase as overhead costs fall – the opposite of most proposals freezing federal employee pay.
- For local federal contractors, smaller government means – eventually – fewer business opportunities. But all good business owners and investors know that diversification is important to the health of the local economy; downsizing government adds impetus to the effort.
SOLUTIONS
- National sales tax of 5 percent replaces current employment taxes that are regressive and total more than 15 percent.
- Sales tax on all goods and services ensures that everyone contributes.
- Employee Social Security tax of 4.2 percent and Medicare tax of 1.49 percent are eliminated.
- Employer Social Security tax of 6.2 percent and Medicare tax of 1.49 percent are eliminated.
- Employers can pay its current employees more and are more apt to hire new employees.
- Sales taxes can be minimized by consuming less and saving more.
- Income taxes don't kick in until the individual taxpayer makes $25,000 in any year and are levied at a single rate income tax rate. According to the Congressional Budget Office (CBO), the overall average federal tax rate was 20.4 percent in 2007. I'll work with CBO and Treasury's Office of Tax Analysis to find the single rate that's fair and helps pay down our $16 trillion national debt.
- Savings of up to $25,000 a year for each individual taxpayer is not taxed until it is withdrawn.
- Examples
- Two-income households that save nothing could earn up to $50,000 pay no income tax and just $2,500 a year in sales tax.
- Two-income households that save aggressively up to $25,000 each could have combined income of up to $100,000 a year and pay just $2,500 a year in sales tax.
BALANCE
- Current federal employees will keep their current jobs though tasks may change as government consolidates and transforms.
- Federal salaries rise as responsibilities increase and the number of federal jobs falls through retirement and attrition.
- Taxes are predictable and transparent allowing household to plan more effectively.
- Current Medicare and Social Security beneficiaries maintain their current benefits while future beneficiaries are encouraged to save more as the age of eligibility for each program rises to 70 years old.
