Ronald Reagan said during his First Inaugural Address: “We are a nation that has a government, not the other way around. Our government has no power except that granted by the people, and this makes us special among the nations of the Earth.”

I’m not saying that this will happen, but if it did, the US would change for the better and the world around us would quake with trepidation.
1. Establish a flat Federal Income Tax (between 11% and 15%) with no exemptions, no excuses, no social engineering.

The Bill of Rights means churches can’t be taxed but no exemptions means no mortgage interest deductions, no earned income credit, no charitable giving deduction. Nothing. Tax is tax. The unemployed IRS people can get an honest job working in the business expansion boom (#2 below)

 No subsidies for anything. Farmers won’t get paid not to grow crops. They can find success or failure but it won’d be a function of the Federal Government.

2. No Federal Corporate Income Tax. Allow the states to tax businesses as they are moved to do. Let those states who want companies to locate within their borders vie for it. 

As businesses crank into high gear, you’d see 0% unemployment and many businesses that oursource work would return to the US. More people paying taxes would compensate for no business tax. The $2 trillion sitting on the sidelines would immediately be invested in business development.

3. Drill Baby! Drill! The US has the largest proven oil reserves in the world. Eliminating business taxes will encourage oil companies to develop those resources and to make the US oil independent and an oil exporter.

Middle East foreign policy would no longer be based on oil. In fact all of the Islamic World would cease to be politically relevant to us. Unless they chose to attack or molest us or our allies (see #7 below).

4. Establish a mirror policy on trade with the object being completely free trade. However if a nation decided to establish trade barriers, we’d mirror what they chose to do.
5. Embrace the 9th and 10th Amendments. Personal liberty (9th) and allow the States (10th) to do everything not enumerated for the Federal Government in the Constitution. If you don’t like your State’s rules, you can move to another one or try to make the changes locally. Basic personal freedoms would be guaranteed by the Bill of Rights (as they really aren’t now).

Role of the Federal Government

  • Defense, war prosecution, peace, foreign relations, foreign commerce, and interstate commerce;
  • To the extent that it applies to the common defense, centers for disease control and institutes of health would remain a priority.
  • Nuclear energy regulation would be managed by the Department of the Interior. 
  • The protection of citizens’ constitutional rights (e.g the right to vote) and ensuring that slavery remains illegal;
  • Establishing federal courts inferior to the SCOTUS;
  • Copyright protection;
  • Coining money;
  • Establishing post offices and post roads;
  • Establishing a national set of universal weights and measures;
  • Taxation needed to raise revenue to perform these essential functions. (See #1 and #2)
No more federal departments of Health, Education and Welfare; Department of Labor; Department of Housing and Urban Development, Department of Transportation (folded into the Department of the Interior to regulate interstate commerce), Department of Commerce (folded into the Department of the Interior to regulate interstate commerce), Environmental Protection Agency (Folded into the Department of the Interior), Department of Veteran’s affairs (folded into Defense), Department of Homeland Security (folded into Defense to the extent appropriate).

6. No more foreign aid. No more foreign intervention unless the circumstances (below) come into play.
7. The Big Stick Policy. If you mess with the US, you get the brunt of our anger. Otherwise, we’ll leave you alone and you leave us alone. Expand the US Navy to 300 ships and increase the size of the Marine Corps to deal with nations that decide to persecute US Citizens or interests overseas. Expand research into areas that advance mankind and improve the human condition.

Example: Somali pirates – any US flag ship that is attacked and taken to a foreign port – we will level the land around that port for twenty (or thirty or fifty) miles in all directions and come and take the ship back. Overkill, sure. But people would not mess with us. We used to be like that. Remember Reagan?

 Example: Iran makes a nuclear device and lights it off. Turn the entire nation into a sea of radioactive glass – one big parking lot. Devastate all population centers from orbit. Never send in a US serviceman. Let what’s left decide to do with what they have. The result would be Pax Americana with nobody stepping on our toes.

Commentary: America would take in more tax revenue than they ever have with everyone paying taxes (no deductions or exemptions). America would realize full employment almost immediately and economic growth on a geometric scale. With employees being in demand, you would see businesses competing with each other to hire people. Wages and benefits would inevitably rise. The rich would get richer and the poor would get richer.

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4 COMMENTS

  1. I have never understood why we give money to people that hate us. But we do, and have done so for some time. Let the Russians go broke by giving away money, or the Chinese.

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