A limited government, tasked with securing the equal rights of all individuals, must have a means of generating the revenue necessary to effectively and continuously meet this demand. With that being said, the tax system that we currently have serves not merely as a means of necessary revenue generation, but as a mechanism of an over-reaching government, intent on controlling the distribution of income, and promoting certain behaviors.
To replace the corrupt, inefficient and immoral tax structure that currently burdens us, we propose an alternative, referred to as a Flat Tax. A Flat Tax treats each and every taxpayer with equality, taking the exact same proportion from every dollar earned, regardless of income level. There exists, ideally, no exemptions. Some have proposed Flat Tax plans, which do exempt lower income earners from contributing, and though we oppose their abandonment of the principle that the government should not discriminate between individuals, we still, generally, prefer these proposals to the current system. Too, as the proportional rate remains unchanged, it does not discourage the individual from increasing his or her productivity. Another benefit of the Flat Tax, is that it harmonizes the interests of the classes, as the tax rate cannot be lowered or raised without effecting all citizens. A notable proponent of such a form of taxation is Friedrich August von Hayek, nobel prize winning economist.
Currently, the regulatory burden in the United States has grown to an unsustainable level, discouraging the creation of wealth, products and services, which grow our economy and improve the living standard of all within our society. For this reason, we seek to drastically reduce the 'yellow tape,' which obstructs entrepreneurs from being able to best serve their consumers, by being forced to waste excessive amounts of resources on compliance.
This, too, includes removing the obligatory occupational licenses for many career options, such as hair braiding, which serves as a barrier to entry into the marketplace. Such barriers disproportionately effect the poorest.
Economists, occupying all sides of the political spectrum, generally, agree that streamlined immigration has a net benefit for native earners, including expenditure on benefits. Too, studies have demonstrated that immigrants and native earners very infrequently compete for job opportunities, with non-high school graduates being effected the most and still very minimally. It is conservatively speculated that with truly streamlined labor immigration, the GDP of the entire world would double.
Our current welfare system is inefficient and has grown to an extent to which it has become an unsustainable burden upon the government's budget. Originally intended to be a limited safety net, to create a floor below which no citizen could fall, it has since been used as a means of acquiring votes for politicians and a lifestyle for some. The system must be reformed now, however, the first part of the welfare system to be placed on 'the chopping block' should, irrefutably, be those transfers given to corporations. As the current welfare system is discriminatory in nature, some classically liberal economists, such a F.A. Hayek, have proposed that we replace the current structure with a universal basic income. However, our position on the matter remains, as of now, that corporate welfare should end immediately and all other welfare programs should be reformed, to return them to their original purpose, as a matter of political pragmatism.
The corporate tax burden in the United States is unconscionably high, both in terms of real and effective figures. It directly contributes to resources being exhausted in order to avoid taxation, and to businesses being forced to relocate. This harms growth, as those resources could be better spent on expansion, interest earning investment, or product development, all of which help the entirety of society. However, its harm is not limited to the aforementioned. As even John Maynard Keynes noted, taxation can reach a level in which it is so high, that it defeats its purpose, and that accurately characterizes our country's current corporate tax rate.
Currently, our military expenditure is, by far, the greatest of all the countries of the world. Though defending the country is a legitimate function of proper government, we have expanded the scope of our expenditure beyond this legitimately justifiable extent. An example of this is our protection of wealthy, independent nations. These prosperous nations are free to direct their resources away from their own defense, while American taxpayers are struggling. Too, foreign aid unjustifiably burdens U.S. taxpayers. Our position asserts that other sovereign nations should be responsible for their own defense, as we are responsible for ours, and that foreign aid should be phased out, starting with the elimination of it for nations which are hostile to the United States.
The war on drugs has significantly harmed economic growth in the United States. It has done so by leading an egregious amount of non-violent individuals to become convicted felons, thus negatively effecting their productivity potential. Too, while incarcerated, these individuals cannot earn taxable income, and instead become an economic burden upon society. Resources exhausted on illegal substances cannot be taxed, and this money has now entered the underground, black market, which pulls it out of the economy. As our focus is economic, this does not even speak to the quality of the product, as a result of being pushed into the black market. We exhaust absurd amounts of money on a daily basis on the war on drugs, which has not even effectively discouraged use of these currently illegal substances.
The Minimum Wage
The minimum wage secures a higher wage for some, whilst it secures unemployment for others. A minimum wage, particularly one which exceeds the natural price for low-skill work, prices those whom are least capable of earning an income, out of the marketplace, artificially. Cost increases, resulting from a minimum wage increase, are passed onto consumers, directly having a negative impact upon the living standard of the masses. The minimum wage violates the individual's freedom of association, as they are no longer able to determine for themselves the lowest amount which they are willing to sell their labor, and are thus barred from voluntarily entering into contractual agreements with whom they choose. Sadly, another consequence of the minimum wage is automation of low-skilled work, robbing individuals of the potential to earn income. Data shows such positions are most often filled by young adults, or seniors supplementing their retirements.