Answers to Answers

I thought I had better explain some of my sketched material in previous Posts. The first item of examination might be my desire for a Flat Income Tax of 24% without any Tax reductions except true Business Costs of the current Year, but with inclusion of Local, State, and Entitlement taxes in the total estimate of 24%. Depreciation of Capital can be determined as it was under the old Tax system, before the Devotees of the Kennedy Cuts developed the sculpted Accounting system in use Today. Income does not have to be split into originating segments in order to be taxed; it can hold to the old Adage: If you made it, you Pay! The next Statement is easy to understand, but possibly detested: If any Entity insists on the power to accrue liabilities and assets within the economy, they can and must be considered a taxable Entity with an independent Income. Local, State, and Entitlements taxes can be integrated into federal taxation by standardized Average payments per Income Group of each State; this Process may seem complicated, but really is quite an easy Accounting procedure, especially when aided by State provision of Statistics. The importance comes in the theory of Tax inclusion and limitation, not in individual cries that true Income tax limitation is not being maintained to the last Cent.

The next item must be my position on Keynesian theory of Government need to maintain Economic performance, especially Employment, through Deficit Spending. I have never believed this Thesis, but I also lacked any belief that Free Market forces could maintain the Demand for Consumer Goods sufficient to realize any Full Employment cycle in the Economy. Deficit Spending by Government simply worsens an already bad situation, by generating the effective equivalent of Printing Dollar bills; Treasuries are simply larger and Prettier. They propel the same effect, which is Inflation; a substance which will not deflate until those Treasuries disappear. Government Deficit Spending will not have long-term economic value to an economy, and not even a Short-term effect if non-funded Government Spending exceeds 3% of GDP ( We are not talking total Government Spending here, only non-funded Government Spending). The real Solution to the Great Depression was the simplest, therefore ignored, but Government should of bought those filled Warehouses of Goods, and hired men to scrap out those Consumer Products. They would not even had to tinker with the Money Supply. Incredible Expense?–probably only about 30% of what the New Deal cost, and without the development of Keynesian thought. lgl