The Solution

There are lots of ideas to solve problems.  Here are just a few.

1) Implement consistent standards on how to enforce laws from state to state

While many states have different tax rates, the real issue is how states interpret the execution of their laws.  The patchwork of state laws causes havoc on interstate commerce and becomes a vital source of revenue for states wanting badly needed revenue.  The governors of this country need to initiate a “best practice” rule and highlight states that don’t follow it.

2) Modifications to our Legal System

What we do know is the US has the highest concentration of legal professionals in the world.  There are approximately 1.15 million lawyers in the United States.  There lobby is very strong, most politicians are lawyers and no one wants to reduce their long term ability to provide for their family. The United States should charge a scaled tax based on the size of a tort action.  The states could use the money. Increase the ceiling on small claims actions.  Most states have a $5,000 limit on claims.  This needs to increase to $20,000.  Small claims court is fast and efficient. Many countries have a “loser pays” philosophy.  Others offer an exemption for those that can claim poverty.

3) Healthcare Costs

Unfortunately I have yet to dive deep enough into this to solve the problem.  It is complicated and systemic.  The cause of runaway health care is malpractice, but not the medical kind. Rather, we’re guilty of business model malpractice on a huge scale. Most caregivers in our system bring excellent talent and commitment to their patients. But the systems in which they operate compromise quality and push up costs.

4) Immigration

If someone can afford to be educated in an advanced degree within our borders we should be more accepting of providing a green card. If they are an engineer, scientist, mathematician we can make it even easier.  Immigration has proven to be a benefit for any country that is the recipient of the additional labor resources.

5) Simplify our tax code

The more complicated the more burdens to businesses who have to weed through them.  The fees that companies have to pay for payroll, accounting, and Sarbanes Oxley are a huge burden on our international competitiveness.

6) Modify the Charity Deduction

The slow modification and elimination of tax free status on charities, foundations, universities, and religious institutions.  The sad fact is more and more businesses are operating under the pretense of becoming a non-profit organization.

7) Social Security Disability

Too many people are abusing SSD with illnesses that are impossible to validate.  I would eliminate categories of disabilities that are widely fraught with fraud.  We may want to evaluate making SSD payments to individuals public as a way to shame marginal candidates that game the system.

8) Abortion Rights / Gay Marriage / Gun Control / Flag Burning

These are emotional issues that have a minute effect on the economics of the country and should be avoided in any context to solving Americas financial problems.

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