Economic Renewal

“The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little.”

– Franklin D. Roosevelt

The Problems:
  • Income Inequality: Higher-income individuals contribute a smaller proportion of their income to taxes compared to lower-income groups.
  • Lack of Funding for Public Services: Insufficient revenue from current tax systems limits investment in essential public services.
  • Wealth Concentration: Wealth is increasingly concentrated among a small percentage of individuals, exacerbating inequality.

Our Solutions:
  • Progressive Taxation and Wealth Tax[1]: Implement a progressive tax system where higher-income individuals pay a larger percentage of their income in taxes. Introduce a wealth tax on substantial net worth to ensure fair contribution and fund essential public services.
  • Corporate Tax Reform: Close loopholes and ensure corporations pay their fair share of taxes. Empower the IRS to strengthen tax enforcement and auditing processes, redirecting funds towards social welfare programs and economic stability.
  • Direct Banking Option: Introduce a public banking system option that allows people to bank with the Federal Reserve directly[2] and cease all private bank bailouts[3], to enhance regulatory oversight and financial sector efficiency, ensuring a stable environment for economic growth.
  • Regulating Globalization and Sustainable Growth: Adjust globalization policies to promote fair competition, protect domestic industries, and direct public investment towards sustainable practices and job preservation, fostering equitable and stable economic growth.

Our Reasoning:
  • Fairness and Equity: Progressive taxation, wealth tax, and corporate tax reforms promote a fairer distribution of the tax burden, ensuring those who benefit most from society contribute proportionally.
  • Revenue Generation: By closing corporate tax loopholes and enforcing fair taxation, we can generate additional revenue essential for funding public services and reducing budget deficits.
  • Financial Stability: Democratizing banks enhances regulatory oversight and financial sector efficiency, ensuring a stable economic environment conducive to growth.
  • Sustainable Economic Practices: Adjusting globalization policies promotes sustainable growth, protects local industries, and preserves jobs, contributing to long-term economic stability and environmental sustainability.

How we will accomplish the task:
  • Legislative Action: Advocate for and pass legislation that establishes progressive tax rates, implements a wealth tax threshold, closes corporate tax loopholes, and transitions towards a community led direct banking system.
  • IRS Empowerment: Allocate resources to empower the IRS with enhanced enforcement capabilities and auditing processes to ensure compliance with tax reforms.
  • Policy Implementation: Work with regulatory bodies to implement adjusted globalization policies that promote fair competition and sustainable practices.

Funding:

Economic Renewal | Net increase of $465 billion annually to the federal budget.

[1] To promote equal opportunity, we propose a modest wealth tax on inherited assets, excluding primary residences and family heirlooms. This policy respects family legacies while ensuring that large inheritances contribute to essential public services like childcare, education, and healthcare. By reinvesting a portion of inherited wealth, we can empower all young citizens to pursue their own paths to success, supporting a fairer and more equitable society.

[2] This policy aims to create fairer financial conditions by supporting higher interest rates on savings accounts and lower rates on credit loans, while enabling instant transaction processing. Private banks would continue to operate but would need to meet Federal Reserve standards and be democratically controlled like credit unions—owned by their communities. Tax incentives would encourage credit unions over corporate banks, promoting financial institutions that prioritize community interests and provide equitable financial services.

[3] In cases where a bank’s failure would cause significant economic disruption, bailouts may be permitted. However, these bailouts would come with the condition that the government gains partial or full ownership of the institution, ensuring greater oversight and accountability. This approach protects economic stability while safeguarding public interests, ensuring that taxpayer support leads to responsible and community-focused banking practices moving forward.

[4] We propose eliminating tax expenditures like capital gains, Controlled Foreign Corporations (CFCs), and Foreign-Derived Intangible Income (FDII) that incentivize corporations to shelter profits overseas. The remaining tax benefits would then be redirected to cooperatives, union-led companies, and other businesses that share ownership and rewards among all employees. This shift would save approximately $170 billion, encourage businesses to reinvest locally, and foster a more equitable distribution of wealth. By focusing on worker-owned models, we can ensure that the financial benefits are shared more broadly, strengthening the economy and supporting sustainable growth.

[5] By increasing the IRS budget by $80 billion, we could generate approximately $20 billion annually through more effective enforcement of the existing tax code. With the added resources, the IRS would be able to close loopholes and ensure that all taxes are paid as required, ultimately bringing in an estimated $100 billion each year. This investment in tax enforcement not only improves fairness in the system but also creates a surplus that can be reinvested into essential public services. According to the Congressional Budget Office, this approach could yield significant returns over time, improving the overall financial health of the nation.