I am a proud Reagan Libertarian. Ronald Reagan turned the worst economic slump since the Great Depression into the greatest economic turnaround and expansion in world history with one simple stroke of genius — the largest tax cut in U.S. history.
It is time for a Reagan Libertarian Contract with America, a daring plan aimed squarely at motivating entrepreneurs, small business owners, and taxpayers.
Here is the 20-point Reagan Libertarian Contract with America:
1. Award every taxpayer in this country a one-year income tax vacation. This plan costs about the same $1 trillion that Obama spent on his failed stimulus-to-nowhere.
2. Welcome taxpayers back from the income tax vacation with a permanent and simple 15 to 20 percent flat income tax, combined with zero capital gains tax. This combination will stimulate and reward risk-takers and small business innovators, thereby creating millions of new jobs.
3. Offer “angel investors” a new investment tax credit. Investors would receive dollar-for-dollar tax credits up to $100,000 for investments in IPOs, secondary offerings, startups, and new real estate developments.
4. Suspend the employer payroll tax for two years. Small business needs a break. Give them two years without having to pay for the payroll taxes of their employees.
5. Cut the corporate income tax rate from 35 percent to a flat 15 percent. Pay for it by eliminating all corporate welfare.
6. Turn illegal immigration from a cost to a benefit. First, secure the borders with a combination of virtual technology and greatly enhanced border security. Then offer instant citizenship for any immigrant in the world that brings $250,000 or more to invest in a U.S. home or business within six months of arrival.
7. Social Security can be secured and the debt reigned in with an immediate rise in the age of retirement to age 68 for anyone younger than 55 and within five years raise the age of retirement again to age 70. Institute a partial privatization of Social Security for younger workers. Convert Medicare and Medicaid into block grants and hand the entire budgets to the states.
8. Legalize, regulate and tax online gaming and medical marijuana which would raise almost $300 billion over the next decade, directed to deficit reduction.
9. Cut the size of government with an immediate freeze of all government hiring; freeze all salaries; and immediately cancel all cost of living raises and step-up raises.
10. Implement government employee pension reform by changing from defined benefit to defined contribution plans just like a private sector 401(k). Ban unionization of government employees, thereby eliminating collective bargaining.
11. Pass a balanced budget amendment to the Constitution to take effect after the end of the income tax vacation.
12. Phase in dramatic cuts in government spending over three years, across the board cuts for all departments, no exceptions. After that, limit any increase in spending to population growth plus inflation. Give the president the line item veto to carve additional waste out of each and every bill passed by Congress.
13. Audit all federal agencies and programs to determine if they or their spending are constitutional. This would automatically result in the banning of TARP, stimulus and bailouts FOREVER.
14. End the Iraq and Afghanistan wars. Demand Congress issue a formal declaration of war before fighting any future wars (unless responding in self-defense). This would reduce the likelihood of future wars, thereby saving taxpayers billions in potential deficit spending. Phase out ALL foreign aid by cutting out 10 percent per year for 10 years, thereby giving all our allies time to prepare. Cut the number of military bases across the globe.
15. Repeal universal healthcare, institute tort reform, expand freedom of consumer choice (allowing consumers to buy across state lines), and expand HSAs (health savings accounts). Make all health costs, including insurance, 100 percent tax deductible.
16. Eliminate the Department of Education, redirecting the funds to the state and local level. Ban unionization of teachers. End tenure — job security and compensation must be based on performance.
17. Encourage unlimited offshore drilling to dramatically lessen our dependence on foreign oil.
18. Limit all members of Congress to two terms. Limit the amount of time Congress can meet to only four months per year. The less time they have to create more laws, the less damage they can do. Limit Congress to passing only bills that are PROVEN constitutional. Place a three-year moratorium on passing any new rules, regulations or mandates on the American people or American business.
Ban Congress from hiring staff with outstanding tax debts or liens. Require that all bills be read out loud in front of a fully assembled Congress before voting on them. Post all bills online before voting on them.
Mandate that all bills passed by Congress also apply to members of Congress. Allow the legislatures of two-thirds of all states to overturn any federal law or regulation.
19. Forever ban the word “czar” from our government’s vocabulary. No president should ever be able to hire cabinet level executives without vetting and approval by Congress.
20. Audit the Fed, then aim to eliminate this unaccountable organization that has done such damage to the U.S. economy.
This 20-point Reagan Libertarian Contract with America will put the U.S. economy back on solid ground. It will create millions of jobs — just as Reagan’s tax cut did in the 1980s.
Wayne's new book will be released next month, “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gold & Tax Cuts.” His website: ROOTforAmerica.com.
© 2014 Newsmax. All rights reserved.