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Capitalism as we know it here in America dying given all the bailouts more government involvement of private business greater regulation.
Even a scathing new movie by filmmaker Michael Moore it is a question that many are now asking.
Former reform party vice presidential candidate Pat Choate says capitalism might be wounded -- but it can be saved you just published a new book called you guessed it saving capitalism.
Keeping America strong he offers up six proposals.
Help resuscitate our economic system.
We welcome pat -- to the program once again pat good to see you thanks for coming back on Brian.
They threw him a good -- and you're sure thing okay well be announced live TV got time to get through all six of your proposals we're gonna shown to our viewers but I wanna focus and if we can on three the first one being tax reform.
We are headed toward in seemingly everything.
Much higher taxes in America across the board corporate individual with the exception of -- puny 400 dollar per worker tax cut per year what do we need to do with regard to taxes.
-- I don't think we're headed towards higher taxes I think.
That no tax movement of personal and corporate taxes is so effective.
The -- hold it down I think what we're headed to.
Is ever increasing debt which at some point is going to -- capacity -- be the reserve currency.
Is going to lower standard of living I think bankruptcy.
Is were really -- what I propose.
Is that we just scrap.
The corporate income tax and which -- the personal income tax and we adopted value added taxes 100 and to Q and other countries have done.
In many advantages in that.
First of all little lower taxes for every 12.
We can structured in such a manner where is progressive.
So we don't text food medicine and certain basics the third thing that we do on this.
Is all the loopholes are closed on those.
Four thing we will dramatically drop the compliance costs in the United States which is now about.
One and a quarter percent the GDP there would be -- April 15 tax forms.
To file out.
And it would all be collected through the production and sales pages which means there'd be no audits of individuals it also means.
That if you save money you keep the money.
Only consumption is -- But -- -- again it also capture you also capture parts of the economy that are not tax illegal immigrants to regular people -- who are gonna file a tax return.
But they're gonna buy stuff.
Then they're gonna -- contributing.
Through their purchases.
Will pick a quarter returning to 300.
Billion a year just off of that sort of stuff the other big advantage that we get it re really help recommend that companies on export.
Under the global trade agreements other countries get to rebate -- back taxes into the US since we don't have a -- Some 50000 dollar Mercedes-Benz coming in from Germany.
The German government will give a 19% rebate about 101000 dollars to Mercedes-Benz.
So that -- -- and our market at 40000.
You take a 50000 dollar Cadillac Escalade going in Germany the Germans did to -- 19% -- so that sells for 60000.
At 220000 differential.
This alone -- there economy 350000000001.
Of the things -- I did.
A law -- Stewart -- one of the best trade law firms in the country.
To calculate for a 151.
Countries for the year 2007.
Just how much that -- discrimination costs we would totally eliminate that.
If we -- to adopt.
That's -- they -- going the other direction you know that the topic I was gonna go from 35 to 396 state taxes have gone up and -- you know because it's easier movement that people that that -- those types income tax rates.
You know are doing quote their fair share but let's move on.
-- -- well either this is gonna hurt the economy -- of course this -- you're taking your number.
And moving it like -- -- -- government programs that for the most part do not contribute to GDP.
Imagine running the tax rate down to -- and effective tax rate 2223 point four percent.
You would cut the real -- -- for the average American three or 4% that's a big savings for America.
Yeah well you put a politically right now that's for the most part going to be a non starter let let's -- was -- afford to live your proposals in the related.
Help America's workers and reinvest and infrastructure.
Completely agree -- be here.
They're both related -- we got to bring back manufacturing jobs we need to bring real not not not fill -- potholes but building out things like high speed rail which employ thousands of people and more importantly.
Add to the productivity and strong infrastructure of this country.
We've got a view this as Eisenhower did in the mid sixties we got to take on a project similar.
Two the interstate highway identify fourteen basic types.
That we need to rebuild American society of civil engineers provided me the -- -- basically we've got about a 2.2.
Trillion dollar backlog imagine that -- but that happened to five years.
And say we're gonna take it we're gonna make this country to look and be in the tank and you were we're really productive.
-- their infrastructure.
We would create seven million new jobs now.
About two thirds of those would be in the construction but a third of those would be and things like steel and concrete and proper materials and all the things are going to.
Can you imagine seven million new jobs what that would do for the economy and what it's the room.
We have the infrastructure.
Yeah and you give people well paying jobs with a dignified retirement.
You know that just like the president has talked about but we can't do it by short term plans we've got to make long term.
Think big type projects right like -- -- highway system that address of productivity.
Against -- -- where they're going fast.
Yes yes and another thing I talk about in the book.
Is we have unemployment rate among our teenagers sixteen to nineteen.
-- -- -- dropped out need to jump of 25% that's depression era.
Unemployment most of these kids are in large urban areas most of them are drifting -- sloth or crime or games.
Lester on FDR did send me five years ago create something like the kinds of civil conservation corps.
Our parks are far it's really need rebuilding.
We have a system.
That actually works we put -- government employment it's the only way government employment is the only way these kids are going to be say let's put him out.
Save the -- save the kids we've got one point five -- Teenagers.
That are unemployed when -- take that -- directly to lose these kids.
Native bring it up in your book but Colin Powell's new education organization estimates that every high school drop out cost taxpayers more than 300000.
Each Princeton did a study that at the one point two million on average drop -- every year stayed employed we would have -- over 300.
Per year to the US economy but nobody's talking about that that nobody's talking about.
The cost side it's just like health care how do we pay -- not -- are also high wire taxes needing to go off.
You know how to pay for.
This this I can -- -- Public spirited person our foundation or politician.
Taken on this youth unemployment.
It wonderful project they would do the country such good.
Yeah I agree pat children really blew it for Colin Braun and yet we got Leo -- -- they were trying to get on the show pat -- leave it there are the book is called saving capitalism patent suit against junior thank you so much.
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