Homes and Jobs For All

(For Official Use. Aug. 2023, Lighthouse Press)

By Robert Jackson, PhD Candidate School of Behavioral Sciences, Public Policy Walden University

Abstract

By simplifying the U.S. Tax Code to better define what is taxable we can reduce fraud, increase transparency, ease administration that ultimately will save lives and raise billions for reinvestments. The modest tax reform proposed that eliminate tax loopholes will permit labor and government to partner in providing Homes and Jobs for all.  Increased tax revenues that mandate all states participate with uniform codes will generate billions currently not being collected.

With practical solutions that balance and stabilize the West’s volatile economy, together we can usher in a new economic period of thriving instead of the dominant scarcity and conflict we may otherwise face. The Homes and Jobs for All program is predicted to directly impact quality of life items - namely reducing crime, improving education, lowering unemployment and provides greater security funded thru reasonable and much needed tax reforms. These reforms are predicted to also move the needle forward on the fronts of equity, liberty and justice for all with minimal sacrifice from those that have profited the most.

Background

The Homes and Jobs For All program could be the largest public works program in the U.S.’s history, if embraced.  It could become a major driving solution that addresses and helps to curb homelessness and crime as increased wealth is predicted to help interrupt poverty and therefore reduce some correlated forms of crimes (Fleming, L. 2011).

The present structures of capitalism are not sustainable. For instance, classist societies don’t exhibit fair competition environments when built and enforced by brute force and unfair discriminations. This unfairness is increasingly not being tolerated globally as evidenced by uprisings. Even when the military advantages are more clearly established to show dominance of one group versus the other, people revolt against oppression (i.e. see Indigenous Zapatista Uprising). As peace grows and the depletion of many major natural resources takes hold globally, the dependency on war industries and oil will increasingly cease. The legacy of abuse humanity will reflect on concerning colonial enterprises will be kept in the halls depicting the worst governance humanity has suffered.

By implementing Homes and Job For all made possible by tax reforms, freedoms thirst is quenched by the abundance of time made available by technological advances and by eliminating rent/mortgages which are all necessary steps in the abolition of slavery and the maximization of human potential.  

Problem of A Weakening US Dollar

In the article by Harsha (2022) citing Jay Rosenguard, Harvard Adjunct Lecturer in Public Policy, it’s stated an estimated $450 billion could be expected to be coming from the new tax signed into law by President Biden, 2023, called Inflation Reduction Act over the next decade.  What percent is $450 billion of average tax collected now?  To answer that consider the US’s $5.3 Trillion budget for 2024. In contrast to annual spending and growing deficits, the 15% minimum ceiling on corporate tax is a very small ask compared with the tax generated from the rest of us each year which still leaves us collecting in taxes just half what we are spending each year. Divided over the decade, $450 billion becomes less than half of 1% a year of the taxes collected overall (3.41 Trillion) according to Department of Treasury 2023 if the figures were to remain proportionally similar to recent annual collections (see https://fiscaldata.treasury.gov).  In this light, rather than seeing Biden’s new tax deal as a victory against corporate tax dodgers, it should be celebrated for what it really is – a very small step in addressing a very large problem of learning to live within our means here in the U.S.

Biden’s championed tax hike is in fact so small it is hardly anything future generations will enjoy as a significant balancing of the budget.  If anything, debt trends will be evidence of more blatant theft as politicians selling war barely asked anything more from the most wealthy earners in the U.S. to address worsening domestic issues including rising poverty, rising violent crime, and health crisis, while simultaneously seeing record profit periods in many industries.  It is important to note many of the top earners are corporations with headquarters in other nations that now may opt to invest in BRICS economy versus the various economic systems of the West which also could further weaken the U.S dollar and dramatically impact foreign policy and our quality of life.  Given the variables of tax collected (variations +-11%, inflation 2-5%, and national debt rising limits 50 to 100% that push interests on outstanding loans) this estimate is purely to give a relative validity to the perspective of the weakening U.S. dollar.  An earlier fiscal analogy was of every dollar printed, 25 cents was owed to debtors, primarily Japan and China. Today that figure is likely higher, but precise analysis and genuine debates concerning Gross Domestic Product, tax collections, national spending, waste and debt are part important of getting our house in order.

Societies of the West face an age old test of maturity. How will the West re-define success so that it does not threaten the harmony of life on earth and so it’s neighbors can have a renewed trust in the credit worthiness an evolving empire needs.

Recommended Flat Tax Solutions

We could and should be getting rid of the gimmick tax breaks and subjecting a flat tax at higher percentages based on the wealth brackets as the wealth rises to achieve fairness rather than allowing tax evasions to be maintained as the norm.  For example, those earning less than $50K a year could pay a cap of 15% tax on wages instead of the near average of 25%  wage taxes (oecd.org, 2023 ) if tax reforms are made.  Net estimated annual savings to earning below 50K is $5000 plus all sales tax which would be eliminated nationally.  Net gains expanding tax definitions for flat 20 % tax on the upper brackets for taxes collected (50K+) are estimated to be in the billions annually.  Thus, shifting the greater tax share to top earners is a logical advancement for the quality of life for bottom majority 90% population with only modest increase in tax rates for top 10% earners, but with clear and profound benefits to quality of life issues for all in the fairer exchange.

Also tax income or tax purchases, but not both. Currently 9 U.S. states don’t tax income (Probasco,J. 2023) and 5 states have no sales tax (Houston, R., 2023). This 20% flat tax reform would give all states one income/earning wealth flat tax.  Responsible changes to tax codes and homes for all with no mortgages and no rent could spark major spending and investment.  Assets, holdings, and wealth or any kind in addition to wages, earnings, or profits alone should be taxed fairly at a flat 20% with no exemptions and no exceptions except the elimination of all property taxes. While it is understood churches will not like this change, the argument of fairness is that not only the rich will give more, but all previously exempted will begin to contribute.  Religious organizations however could be permitted to designate 100% of taxes paid go towards social programs and not for any war enterprises as a compromise.

The 20% flat tax on the high earners over $50K and asset holders, if paid, would create enough wealth for everyone to have a free home build on subsidized labor and eliminate rent (a remnant of slavery) once and for all in all States.Eliminating rent would further allow for investments, spending, and improved education.Those industries using property for employment could be retrained and compensated generously for the easements on the properties as the U.S. makes this much needed shift. The argument that no rent is an impossible reality can look to Europe and other nations for tips on how well it works.Eliminating all land taxes and sales taxes, business and innovation has room to advance. The closing of loopholes including all exemptions coupled with greater participation in tax programs, a fair flat tax will more than make up for lost sales and land taxes.

According to analysis by Swiss Bankers, the top 10% of the population hold the most wealth or estimated 85% and bottom 90% of the population hold roughly 15% of the worlds wealth (Davies, J., Lluberas,R.,  Shorrocks, A. 2013). A more balanced tax formula could allow a break for the working and middle classes while simultaneously bringing in much larger collections in taxes than historically has ever been previously achieved if cooperation on reforms is achieved. 

This change will not come because some sponsored suit with a fancy title says it should or that hacker in his basement wishing for revolution.  It will only come if the public demands a fair and honest re-write of the tax code.  While we’re at it, it is suggested to gain broader buy in on the tax programs we make, that the payers of the tax be permitted to cap what goes to war or opt out altogether by selecting an option to curtail that runaway train and send their individual taxes assessed instead to general and social services. Nothing more American than honoring religious freedom to support the commandment thou shall not kill … or throwing tea in the harbor and suggesting the tax man should go back to England?   

Furthermore, to regain the worlds trust we need to eliminate the tax spending on war buried in other bills and used like bargaining chips that pawn our debt to future generations and give more power to our debtors that are largely actors in economic wars and other forms or war against us.  Sure they are loaning us money and acting like friends, but do friends really put each other in never ending debts and cycles of exploitation? Funny how the tables have turned and the politicians selling us out in contracts with proven bad actors…even known war based adversaries….are permitted to allegedly represent us.  As my uncle Abe use to say, you can fool some of the people some of the time, but not all of the people all of the time.

Facts to test and further investigations recommended:

War resisters league publishes an estimated figure suggesting 43% of all taxes collected go to covering military costs (WRL, 2023). Based on the hidden bills that also have military costs under different names the percentage is actually higher. This accounts for nearly all of the deficit. Maybe we just simply can’t afford war and the Department of Peace that got buried in the ruble of the house floor literally on the days of 911 should be dug up again?

Even the best tax models are not sufficient to give us accurate accounts of where the tax money is actually going which is and often cited reason why both individuals and corporations don’t like paying taxes.  Many tax evaders would likely return if they see greater management and accountability of the tax funds.    

People that are antiwar or even just conservative about how much war they want to fund don't currently have an option to send their taxes to other areas besides military spending. Yet the average person is unaware how many wars are being waged using this money right now or why those wars are happening in the first place. With reforms to tax codes all that can change.

References

Fleming, L. (2011). The Relationship Between Poverty and Crime: A Cross Section Analysis. Bryant University. Retrieved 8/5/23.

https://digitalcommons.bryant.edu/cgi/viewcontent.cgi?article=1052&context=eeb#:~:text=Poverty%20and%20population%20density%20were,correlation%20between%20unemployment%20and%20crime  

War Resisters League (2023). Where your Money Really Goes 2024.

https://www.warresisters.org/resources/pie-chart-flyers-where-your-income-tax-money-really-goes

Probasco, J.  (2023). 9 States With No Income Tax. retrieved 8/5/23 from

https://www.investopedia.com/financial-edge/0210/7-states-with-no-income-tax.aspx#:~:text=As%20of%202022%2C%20Alaska%2C%20Florida,tax%20on%20certain%20high%20earners.

Davies, J., Lluberas,R.,  Shorrocks, A. (2013). Global Wealth Report 2013,  Global Wealth Pyramid. Credit Suisse Global Wealth

https://publications.credit-suisse.com/tasks/render/file/?fileID=BCDB1364-A105-0560-1332EC9100FF5C83

Harsha, D (2020). A tax expert drills down on the new minimum corporate tax, an injection of funds into the IRS, and the loopholes that stay open. Retrieved from https://www.hks.harvard.edu/faculty-research/policy-topics/business-regulation/closing-loopholes-and-raising-revenue-new-tax?

Houston, R., (2023). 5 States With No Sales Tax. Retrieved 8/5/23 from

https://smartasset.com/financial-advisor/states-with-no-sales-tax

US Department of Treasury. https://fiscaldata.treasury.gov retrieved 5/18/23

Dendor , Pick, Cedano (2023). Taxing Wages - the United States . Center for Tax Policy and Administration  https://www.oecd.org/tax/tax-policy/taxing-wages-united-states.pdf . Retrieved 8/3/23