I have a plan for job creation that will actually work:

(1)  Elimination of the  Tax on Capital Gains. 

Currently, across the nation there are trillions of dollars sitting on the sidelines locked up in appreciated assets.  In order to free this capital to be put to work in new investment, entrepreneurs must be liberated from the onerous tax burden imposed on the realization of capital gains.  We must encourage new investment by removing the tax barrier put in the way of risk takers and free up the flow of money into new enterprise.

This one measure, alone, will have a profound effect on capital markets and jump start new job formation in the form of privately funded business activity.  Until risk capital is given the incentive of full profit  realization, it will not come off the sideline and reengage productively in the economy  All the government rhetoric promoting new job formation will be futile without concrete action to restore incentive.  Government needs to release investment from its heavy tax grip.  Once set free, new and reinvigorated profit driven activity will push private sector employment to levels unseen since the days of the Reagan era.  

(2)   Permanent Repeal of the Estate Tax     

A very small portion of total federal tax revenue, (less than 1% ) is generated by taxes levied against families when their successful patriarch dies.  But the negative consequences on the larger economy are huge.  One of the best ways to break up a thriving small business is the forced sale of assets to pay confiscatory death taxes.  Of course, not only are hard earned family assets stolen by government, but all the jobs that were dependent on that family business continuing are lost.  Apart from the inherent unfairness of a family forced to liquidate just to pay the tax man, the estate tax is a job killer and must be repealed permanently to give some certainty to the heirs that they can continue building on the success of their fathers and mothers.

(3)   Replace Payroll Deductions with Personal Savings Accounts

Today we have a system of entitlements that include social security and medicare that are paid for by deductions from payroll checks that amount to 15.3% of total annual wages.  These payments are made directly to the federal government and then paid out, less some 10% in overhead costs, to retirees in what amounts to a giant Ponzi scheme.  Although the goal is certainly worthy, that is assuring a secure retirement for our seniors, we have adopted a scheme to pay for it that is unsustainable and unproductive. 

Over time, so that we do not deny any promised benefits to seniors currently on Social Security and Medicare, we must move to a system where individuals take charge of their own money by investing in their own retirement future.  Instead of the government taking one sixth of our money and redistributing it, we need a tax deductible mechanism whereby each individual has her or his own personal savings account.  Prudently invested, this retirement account would be much larger than current lifetime benefits available from Social Security and Medicare.  This mechanism has the added advantage of individuals investing in the future of their own country and economy building more opportunity for jobs and innovation, rather than a simple, unsustainable transfer payment that does nothing to build the economy. 

Now, I certainly understand that the adoption of these measures and others, like a significant reduction in marginal income tax rates, will be difficult to achieve politically.  But I am committed to making these changes and others to stimulate job growth and restore prosperity.  We can no longer let the left define our economic future.  Big government spending, big government bureaucracy and big tax burdens will continue to limit our liberty and yoke our children and grandchildren to higher and higher debt.  

WHERE THERE IS LIBERTY THERE IS PROSPERITY