THE BALANCE FOR FREEDOM FOUNDATION
Our purpose is to seek and promote a balance among contending economic and political forces so as to support a free, stable and prosperous society in the USA.
There is tension between two objectives:
- To assure economic freedom and individual liberty and the maintenance of proper incentives to achieve optimal economic growth.
- To provide for people unable to do so at an adequate level while also preserving their incentive to do productive work at the same time.
We propose that the government pay each registered, adult* citizen $500 taxable income every week. Tax all income at 10% under $50,000 and at 45% over $50,000. Eliminate all tax deductions, preferences, loop holes and the corporate tax. Eliminate all welfare and other government transfer payments.
*$200 for children under 9 and $300 from 9 to 18.
What are our reasons for the proposal?
- The current welfare system reduces or eliminates benefits as people start earning an income and accordingly, they are better off staying on welfare than working. Under the proposal they would keep 90% of any additional income.
- The current welfare system and other transfer payments are extremely complicated, expensive to administer and open to abuse. Recipients have no interest in eliminating waste. Under the proposal people would manage their own money that they would receive weekly.
- The US tax code has grown beyond anyone’s ability to learn or comprehend. People with average earnings are required to spend tens or hundreds of hours or hire experts to comply. Corporations and the wealthy employ high powered experts to minimize their taxes. The IRS must engage a large and expensive work force and tie up the courts. The tax code incentivizes activities that are often misdirected and can’t be justified. Millions of hours and billions of dollars are spent to no productive end.
- Registering US citizens for purposes of the social net would have additional benefits in reducing illegal immigration, voting fraud, census, etc.
- Channeling cash to all on a regular basis will spark demand for goods and services. Freeing up productive manpower currently engaged with the administration of government services and private tax matters will create robust economic growth.
- We are sponsoring the building of econometric models to evaluate the impact of this proposal and similar alternatives.