In dealing with our economy and the need to create jobs, we must first realize and acknowledge the fact that this great country and its economy were not built via socialism, government regulations and high taxes. It was capitalism, free enterprise, individual ingenuity, focus and individual work ethic that built an economy the envy of the world. Likewise, with regard to the economy and job creation, it is the private sector, not government, which is the prime creator of both. Government may set a climate for job creation, which may spur the economy. However, it is free enterprise and capitalism, which has built the greatest economy the world has ever known. It is the ingenuity and work ethic of the American people that has led to this economic juggernaut, not government regulations and taxes, as advocated by some. The American Center Party recognizes that business cannot be allowed to go unrestrained and unfettered at will, but truly believes that the free market is best left to regulate itself, with few exceptions. In that regard, the American Center Party recognizes the value provided by unions at their inception, which have served the working men and women of America well in terms of wages, benefits and working conditions. Being for capitalism and free enterprise does not make The American Center Party anti-union or fail to recognize the rightful place of unions in our economy.

In that regard, as we face a difficult economy and the need to set a climate to create jobs, the American Center Party first recognizes that approximately 70% of all jobs are created by small business, not Wal-Mart, Ford, GE or Apple. Accordingly, we must ask what are the governmental policies that are most likely to create an atmosphere of confidence to encourage employers to take those steps necessary to create jobs and put America back to work. What are the economic conditions which will encourage Americans to invest in their future and the future of our country. The first considerations which come to mind are regulations and taxes.

SUGGESTED POLICIES AND PROGRAMS

1. The first step in energizing our economy is to repeal the Internal Revenue Code effective December 31, 2020. Along with that is the necessary reduction in the size of the Internal Revenue Service and the number of its employees.
2. With that in mind, the American Center Party believes the Congress should accept the fundamental philosophy and suggestions of a majority of the Simpson-Bowles Commission appointed by President Obama and immediately close all tax loop holes and reduce the top current corporate rate to 15%. It is intended that the increased profits generated by the lower taxes will allow business to increase wages, hire more workers and otherwise expand their business. It should also be remembered the United States had no income tax until the 1920’s and our economy, as well as our nation, fared quite well.
3. At the same time, since an active and vibrant economy is also buoyed by and dependent upon consumers, who both spend and save, the individual tax rate should be reduced to approximately 10% for those earning between $50,000 and $250,000. Those earning $250,000 and above shall pay 15%. The same fundamental rates will apply to corporations, with those earning up to $500,000 paying 10% and those earning $500,000 and above paying at the rate of 15%. Going further to reform the tax code and help reduce our national debt, all loopholes, including but not limited to  tax credits and exemptions will be eliminated for both individual taxpayers and corporate taxpayers.  These rates shall apply to income of any kind whatsoever, without exception.
4. As for the estimated $2.5 trillion of corporate profits allegedly sitting overseas due to our current high tax rate,we would propose temporarily, that in order to encourage those profits to come home, they should be taxed at the rate of 10%, The revenue generated by this tax would again be applied only to pay off the national debt, specifically the US debt to the Social Security Trust Fund. This $250 billion will begin to restore what is rightfully the people’s money. However, these profits would not be subject to the 5% surtax referred to in the following paragraph.
5. Finally, recognizing our national debt of over $20 trillion, along with the daily interest of over $1.5 billion, is a significant burden on this country and its citizens, a surtax of 5% shall be applied to all income and earnings of any kind whatsoever, for all individuals with an annual income of $500,000 or more and all corporations with an annual income of $1 million or more. Such surtax shall be for five years and shall be applied to and used for the sole purpose of reducing the country’s national debt. The first recipient of this surtax shall be the debt of the federal government to the Social Security Trust Fund. Under no circumstances shall any of the surtax be utilized to fund government programs or applied to any other federal debt, until such time as the Social Security trust fund is fully restored to the value it should have and the debt owed by the US Government to such fund is paid in full.
6. In addition, the American Center Party believes the Alternative Minimum Tax, which was intended to increase taxes for the wealthy, but in reality has become a burden on the middle class, should be repealed, if that has not already happened. In addition, The ultimate purpose of these changes is to assure the tax system in this country is fair and equitable for all.
7. As previously stated, the American Center Party believes the Internal Revenue Code as it currently exists should be repealed effective December 31, 2020 and an entirely new tax code written, which is realistic and will raise the funds necessary to operate our government, but is devoid of exemptions and loop holes, so everyone pays their fair share of federal taxes. When Congress adds 400 amendments to the tax code in one year, as they did a few short years ago, it takes little imagination to realize someone is pulling strings to add loopholes and gain benefits. The time for loopholes and exemptions is passed. Furthermore, all income from whatever source and in whatever form shall be subject to the new tax. Thus, we will no longer have a situation where Warren Buffett pays tax at a lower rate than his assistant. Last year 90 of the 500 corporations making up the S&P 500 paid no federal income tax. This graduated flat tax will prevent that ,and assure that everyone, individual and corporation, pays their fair share.
8. As previously stated and recognizing small business creates most of the jobs in this country the American Center Party recommends placing a five year moratorium on all new regulations to allow those small businesses to breath and get back on their feet. The American Center Party realizes this also benefits big business, which will also help to create jobs, but big business is capable of fending for itself and survive these difficult times. Small business can’t since their market place is local and not national or international. In that regard, it is estimated business pays approximately $10,000 per employee to meet the requirements of regulations. Accordingly, all regulations should be reviewed and where appropriate repealed.
9. The repeal of the healthcare law, known as the Patient Protection And Affordable Health Care Act, will help business and the states by curtailing the new regulations and costs for business and the insurance exchange bureaucracy and costs for the states. Simultaneously therewith, a new healthcare law will be passed, which includes, among other items, portability and coverage for preexisting conditions. This is discussed further in a later section on Health Care.
10. The American Center Party recognizes the infrastructure of this country is in need of immediate repairs to protect our citizens and our commerce. Accordingly, the Party would provide a minimum of $2 billion to each state solely for the purpose of repairing and improving their infrastructure. To be eligible a state must provide a schedule of infrastructure repairs and a plan for said repairs. As long as the schedule is adhered to, the states who do so will continue to receive the annual $2 billion for a minimum of five (5) years. Such appropriation will assist the states of this great country, which states are having their own budget issues.
11. Recognizing a need to continue to reduce our reliance on foreign oil, and extend the life of the oil resources we have, which will serve to protect the future for our children, the American Center Party would make available to each of the states a minimum of $2 billion per year for the next five years to be used solely for renewable energy such as wind and solar power development. This should have been accomplished over thirty years ago at the time of the mid-east oil embargo, but once again the Democrats and Republicans failed to provide the leadership necessary to make this happen. Had we started this program or a similar one thirty years ago, it is possible wind and solar energy, truly renewable energy resources, might be providing as much as 20% per cent of our energy needs today. It is time we began looking forward to 5 or 10 years from now in evaluating our energy needs and how we address them. We owe that to our children and grandchildren. Just as important, this funding will assist the United States in addressing the problem of climate change and its impact on our planet.
12. In addition, as a further effort to attack the climate change problem, the federal government will give to each state the sum of $1 billion for a period of at least 5 years for the sole purpose of planting trees that will absorb CO2 from the air. Just one more way in which we can attack the climate change problem and save this planet for our children, grandchildren and future generations.

This last proposal regarding infrastructure repairs and renewable energy would generate a significant construction business for all fifty states for at least five years, which will give some comfort to businesses to increase their employment, as well as give confidence to their suppliers, their manufacturers and those who provide raw materials. The American Center Party won’t attempt to calculate the number of jobs to be created by these construction expenditures, but knows jobs will be created and those extend beyond the construction industry.

With regard to our tax structure, the American Center Party understands that several years ago General Electric had earnings of $52 billion but failed to pay one penny in federal income taxes. However, that was the existing law at the time. Just last year it was Amazon who received all the attention for not paying any federal income tax. Unfortunately, Amazon is just the tip of the iceberg. Of the 500 companies who make up the S&P 500, 90 of them paid no taxes last year. That has to stop if everyone is to pay their fair share.The fact is their managers were doing nothing more than fulfilling their responsibility to their shareholders and maximizing their profits. However, when a company makes that kind of money, or any money for that matter, they should pay their fair share of the cost of running our government. Likewise, while the American Center Party believes it is unfair, it was the law that allowed Warren Buffett to pay taxes at a lower rate then his assistant because that was the current state of our tax laws. However, people with the wealth of Warren Buffett should be paying their fair share and when an assistant pays a higher percent of her income tax than her supervisor, something is wrong with our tax system. On another note, we are greatly disappointed that some of the wealthy choose to place their money in foreign countries, rather than the United States. Besides, to their credit, many of America’s wealthy have openly acknowledged that they should pay more taxes.

As previously stated, from an economic philosophy perspective, the American Center Party believes in capitalism and free enterprise, which built this Republic into the economic juggernaut of the world. It not only saw the rise of billionaires, but the steady growth of a strong, productive and competitive middle class like none which has existed before and which stands as the backbone of our economy. It is imperative we restore that dynamic middle class so they will once again be the heart of our vibrant economy.  The American Center Party believes the changes in our tax code and the programs suggested herein will establish the atmosphere and energy for a more productive economy in the future and restore our middle class to that level to which they are accustomed and which they deserve.