11/10/2015
By Charles Payne

On November 10, Fox Business Network is hosting the GOP Presidential Debate live from Milwaukee, and most people are hoping to get answers.  This week, I will shares key concerns for voters, beginning with the economy.  Presidential elections are always important; this is critical, as the nation must decide whether to stay on this European path, or get back to the basics of what made America great.

Economy

The tax plans outlined in detail thus far, all have the same theme of lower brackets, and simpler approaches, but even the supply-side have to draw the line on taxes being too low.

According to the Tax Foundation, only Rand Paul’s plan could positively impact U.S. debt levels while generating more than four million jobs.  I find it interesting that most candidates say their plans are revenue neutral, but that’s not the case.  Rand Paul says revenue neutral isn’t important; I like that angle and I would like to see him flesh that out more.

Tax Foundation

On the subject of jobs, it’s one thing to talk about creating them or bringing them back from China and other places.  However, do we want a million call center jobs or sweatshops sewing together sneakers?

America will have an $18 trillion economy if there was a way to tax it across the board at 30%, it would generate $5.4 trillion in revenue and no deficits.  But that would mean a value-added tax (VAT) to capture that 2/3 of economy that is consumer spending.  On that note, why is no one focused on that approach?  I know Democrats talk up the VAT, in addition to current taxes.  If there was a flat rate across the board, we could junk the rest of the tax code.

What tax loopholes are going to be closed, and what’s going to be done to curb ticking disasters-that’s Social Security and Medicare?

Government doesn’t create jobs, government creates the backdrop for jobs creation.  The candidates haven’t made the link to the mass departure, from the labor market and illegal immigration issues, to the fact that Americans are paid not to work.

When it is added up, too many programs pay more than the minimum wage.  This has always been a challenge.  The working poor kick themselves, wondering why they’re working when their neighbors are chilling; yet their neighbor’s children are wearing the same clothes.

This issue becomes social when one considers the rapid decline of men in the workforce.  Considering the record low birth rates and the historically low household formation, the role of men in the workforce is an issue no one will discuss, and yet the ramifications are essential to the overall economy.

Tax policy is just the beginning.  Of course, we want people to spend their money in the economy and to invest- this is an area that I think the next president could have a major impact.

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Charles Payne
Wall Street Strategies

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