The Plan, In Its Glorious Simplicity

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There is a lot of talk in Washington right now about passing an economic "stimulus" plan that will utilize trillions of dollars of deficit spending to fund all sorts of government initiatives over the coming years, many of which are thinly veiled handouts to special interests. Deficit spending in the short term may very well be necessary, but it shouldn't be used to create new fiscal obligations and tie our own hands going forward, and it certainly shouldn't be used to do favors for friends of those in power.

The expenditure of at least a trillion dollars (without so much as the inconvenience of actually even printing it) is an invitation for unimaginable waste, corruption, and abuse. If the government is going to subtract that kind of money from its balance sheet, the best way to ensure complete transparency, complete accountability, and--most importantly--results, is to keep that money from ever coming under the control of anyone who has the power to abuse it.

Economic stimulus in 4 simple steps:

1) Suspend 100% of federal taxes for 4 months (payroll, income, capital gains, corporate, all of it). This will allow the people to keep extra money in their pockets to avoid foreclosure, pay the bills, save, and spend as they see fit. It will weaken the impetus for layoffs and encourage reinvestment. It will completely circumnavigate the smoke-filled rooms of Washington D.C., ensuring 100% transparency and accountability, and it will stimulate the economy immediately. (Total cost: in the neighborhood of $900B, give or take, minus stimulus-generated new revenues after suspension is lifted.)

2) Issue an emergency stimulus payment of $1500 to any worker who paid federal payroll taxes at anytime since January 1, 2008. This will provide an infusion of cash for even those who have been laid off or who have low incomes. (Total cost: in the neighboorhood of $200B, minus new revenues caused by the stimulus effect.)

3) Offer payments in fiscal year 2010 for each additional employee that companies hire in fiscal year 2009 (using January 1st, 2009 as a baseline), with the stipulation that these higher employment levels must be maintained for a period of no less than 1 year. This is indirectly funding the creation of new jobs, by directly alleviating some of the costs for companies who bravely expand and hire new workers in the current economic environment. (Total cost: this isn't a calculable cost... its an investment. It's effect is dependent on its usage.)

Additionally, the United States tax code must undergo dramatic reform to encourage ongoing investment in our economy, and to ensure that the United States remains the most attractive environment in the world for honest entrepreneurs. This is admittedly the most controversial of the steps, because it is the most "permanent" of the four. However, tax simplification would do for the economy what losing 50 pounds would do for a 250 pound man, and it would make the US a much more attractive place to do business for foreign companies. Businesses want stability, predictability, and agility, all of which are hampered by unnecessary complexity.

4) Replace the entirety of the current US tax code with a simple, flat 15% income tax (or another simple system). No more loopholes, no more credits, no more deductions, no more government handout to the financial services industry during tax season... no more tax season.

(Support this plan by signing the petition, please, and Digg It.)