A 15% single-rate tax on all income above a livable minimum, would solve all of the tax policy issues.

To determine what a plan to permanently fix the federal income tax code would look like, let’s first look at what the goals of income tax policy should be.

The first goal should be to enact a plan that raises sufficient revenue to cover all government spending which will eliminate the annual budget deficit. The tax plan should encourage economic growth, rather than placing burdens on growth. …

A 15% single-rate tax on all income above a liveable minimum, is an optimum plan.

President Biden wants to finance his huge spending plans by raising taxes mostly on the highest income earners. He argues he wants the wealthy to pay their “fair share.” He has never defined exactly what their “fair share” would be. In theory, though, most Americans would probably agree that all income earners should pay their fair share.

Biden’s proposal would end up over-taxing the wealthy. While he does not seem to be concerned about that, over-taxing the wealthy really hurts hard working Americans. …

Once the current virus spike subsides, inflation will flare up even after the supply chain issues are resolved.

The Bureau of Labor Statistics just released the Consumer Price Index (CPI) for August. The number was .3%, which is the smallest monthly increase since January. That means consumer prices have increased by 5.3% since last August. That’s a slight decline from July’s rate.

Both the Biden administration and the Federal Reserve (Fed) will note that the monthly CPI number has decreased from the .9% recorded in June and .5% in July. …

It may be time for a major change.

While the debate about the teaching of critical race theory rages from the halls of Congress to school board meetings across the country, others are about the business of reimagining and revolutionizing the educational system in ways that address the real issues of the digital decade.

Primarily, education should be about answering the question of what do our children need to learn, and secondly, how do they learn. Also, how do we teach them in ways that personalize their experience and capitalize on their inherent interests and strengths?

K-12 traditional classroom learning…

Already $28.5 trillion in debt, raising the debt ceiling is necessary but could be very burdensome.

For 55 of the last 59 years, the federal government has spent more money than the revenue it has raised. The resulting annual deficit was financed by selling long-term bonds, usually with 10 or 20 year maturities. Since there is no plan in place to ever pay this money back, the annual deficits are added to the public debt.

While the government pays interest to the bond holders annually, it does not have the funds to repay the bonds when they mature. …

One month of slow job creation is no reason to pass counterproductive tax increases, nor massively increase government spending.

According to the U.S. Bureau of Labor Statistics (BLS), the U.S. economy added 235,000 jobs last month. This figure was about one third of what economists had expected and it was far less than the more than 1 million jobs added in July.

President Biden reacted to this by emphasizing the need for massive increases in government spending and the need for higher taxes on the highest income earners.

The poor performance in the job market was mostly due to the…

Biden blunders on immigration, the economy and foreign policy will lead to disastrous future outcomes.

From the first day of his Presidency, Joe Biden has committed numerous blunders that are beginning to have a very negative impact on the welfare of America. Even though he has been president for only seven months, his poor decision-making has caused what is likely to be very long-term negative effects. It almost seems like he is trying to destroy the country.

His first blunder was with the border policy and illegal immigration. When President Trump was sworn into office in 2017, he inherited a…

They must immediately and gradually reduce the $120 billion per month bond-buying program. They also must immediately and gradually raise interest rates.

This week, the Federal Reserve (Fed) will meet for its annual symposium at Jackson Hole, Wyoming. This symposium is sponsored by the Federal Reserve Bank of Kansas City, which has held this event since 1978. The Fed usually doesn’t set or change any policy during this time, but rather it focuses on general economic issues facing the U.S. and world economies.

This year it should move to set or change current policy. The Fed’s Open Market Committee will…

Excess demand is the problem.

The Bureau of Labor Statistics just released the Consumer Price Index (CPI) for the month of July. The .5% increase in consumer prices shows that even with the economy mostly fully re-opened, inflation continues to be a problem. Since last July prices have increased by 5.4%.

Recent data paints an even worse picture. Most of the price increase recorded in the last year has occurred since January. Prices have increased more than 4% in the first seven months of this year. At this pace, inflation will exceed 7% for 2021. …

The public debt is, in total, about 140% of GDP

The federal government has been on a two-year spending spree. Last year, it spent $3 trillion more than it collected in revenue. This year it will spend another $3 trillion more than its revenue. This adds to the public debt, which will hit $30 trillion by year-end. Is that a problem?

The Senate just passed an infrastructure bill that will spend another $1 trillion, which will be added to the public debt. Another “budget reconciliation” bill for at least $3.5 trillion just passed the Senate, and the House will surely…

Michael Busler

Dr. Busler is an economist and a public policy analyst. He is a Professor of Finance at Stockton University. His op-ed columns appear in Townhall, Newsmax.

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