Russia Today: Kristine Frazao- 'Presidential hopeful Gary Johnson: Eliminate the IRS'

Source:Russia Today- Governor Gary Johnson (Republican, New Mexico) 2012 presidential candidate, talking to President Vladimir Putin's Russia Today.

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From Wikipedia 

"Lately the GOP presidential hopefuls have put on a media circus. And the US' economic issues have been a hot topic for debate. Many of the candidates have expressed their solutions on how to get America out of the economic rut and Gary Johnson, former governor of New Mexico, shares with Kristine Frazao what he'll do as president of the US." 

From Russia Today

I love Gary Johnson's idea of cutting the Federal Government by 43% not because I'm a (pardon the term) a cheap bastard (not that I'm denying that) who wants to throw poor people on the street and senior citizens out of senior citizen homes, but to reform our Federal Government in a way to make it as effective as possible, which by itself would bring the costs of the Federal Government down, because they wouldn't be doing as much. And the safety net is a great place to start when it comes to government reform. 

But we also need to cut back our defense Budget not to make us weaker but so we have less responsibility and demand that these developed nations play the lead role in their own national security. As well as agriculture welfare and corporate welfare: we shouldn't be subsidizing at taxpayer expense company's and individuals for doing well. But tax them at a rate that encourages them to do well in the future, big difference. 

What I would like to do is reform our Federal Government in a way that it's doing much less in the future without hurting anyone who depends on these public services in the future. But do it in a way that makes these public services more cost-effective as well as more efficient in the future. But having others play a bigger role in providing these public services and bring down the costs of them in the future. Which keeps taxes down on everyone in the future and makes these public services more beneficial for everyone who depends on them now and into the future. 

And then reforming our tax code in the short-term and long-term. In the short-term to help bring down our debt and deficit and in the long-term after the Federal Government is reformed, to provide the necessary tax revenue to fund the new and improved (pardon the expression) Federal Government. A tax system that based on consumption and paying for the public services that people consume, rather than taxing people by what they make which discourages making and investing money. 

When it comes to government reform, to start with defense cut the defense budget by 200B$ a year which might sound real high, but in a defense budget of 700B$, is very doable, do this by ending the wars in Afghanistan and Iraq and have NATO and the Arab League play a bigger role in developing these nations. I was for the no fly zone in Libya from the beginning, but with President Obama's latest position on the War Powers Act, where he essentially believes he doesn't need approval from anyone to commit American troops, it's time for us to bring those folks home. (Assuming Congress doesn't get off their cans and do their jobs)

And with out other troops oversees, bring them home and demand that these developed nations play a bigger role in their own nationals security:  Europe, Saudi Arabia, Japan and Korea, and transform NATO into the European Defense Alliance (or something) that would work with us, Canada, Scandinavia, the Slavic republics, Turkey in partnership, but that where Europe defends Europe not America And everyone else defends themselves. 

And then get the safety net off of the Federal and state Budgets all together and convert them into semi- private, non-profit community services for the less-fortunate. They would all be self-financed and run independently and regulated to the extent that they would have to serve anyone eligible who applies. 

As far as tax reform, I would eliminate all tax loopholes including corporate welfare in the short-term and then lower tax rates, to help bring down the debt and deficit but in the long term. 

I would throw out the tax code and replace it with a combination of payroll taxes and consumption taxes. A payroll tax to fund the new Defense Department and then force the Defense Department to live within the National Security Tax and not be able to collect from other revenue. Thats one example. 

Tax reform really should be another post, but another example would be a border fee to enter or exit America to fund the Border Patrol. And then consumption taxes that would cover everything with low- income people still being able to receive the Earned Income Tax Credit. And make it progressive as well, more expensive goods would be taxed higher the cheaper goods. Luxury Cars taxed higher than grocery's. (To use as an example)

The idea of tax reform is great if its done correctly and doesn't result in a net tax increase especially in this bad economy. But tax reform doesn't make much sense without government reform to make the Federal Government as cost-effective and as efficient as possible. And then you can figure out how much revenue you need to fund the new government.