Monthly Archives: September 2010

The Reagan Libertarian Contract with America

A Detailed and Specific Plan to Save the U.S. Economy

“If you analyze it I believe the very heart and soul of conservatism is libertarianism.”
-- Ronald Reagan

I am a proud Reagan Libertarian. Ronald Reagan turned the worst economic slump since the Great Depression into the greatest economic turnaround and expansion in world history with one simple stroke of genius -- the largest tax cut in U.S. history (ultimately reducing top marginal tax rates from 70% down to 28%). That tax cut benefited and motivated the groups that produce virtually all of the jobs and tax revenues in America -- small business owners and taxpayers. These are the very groups that President Obama chooses to punish, instead of reward. Obama redistributes money from taxpayers and small business owners to his voters -- who create virtually nothing, pay almost no taxes, create no jobs, and ask for handouts and entitlements from cradle to grave. In short, Obama’s voters are bankrupting this once great country. This is precisely why the U.S. economy has fallen off a cliff. We are staring at the abyss -- economic Armageddon, chronic massive unemployment, and worldwide depression. It is time for dramatic measures to stave off disaster, deficit, debt and depression.

It is time for a Reagan Libertarian Contract with America, a daring plan aimed squarely at motivating entrepreneurs, small business owners, and taxpayers. These are the people who risk, invest and build America. Without their cooperation, motivation, and success, there can be no recovery. This daring plan is the polar opposite of the Obama socialist plan. But unlike Republican plans, it places equal importance on limiting the size of government, shrinking spending, and limiting the power of politicians, as opposed to simply cutting taxes.

Can it be done? Look south to communist Cuba to see Raul Castro cutting 500,000 government employees, with a promise to cut 500,000 more. Castro is privatizing vast swaths of government and encouraging Cubans dependent on communism and big government to find a private sector job, or start a small business. Even communists are getting the message that desperate times call for daring measures (and a dramatic change in strategy).

Or look north to our neighbor Canada, which in the late 1990’s stared down economic disaster and debt, and pulled off an economic miracle with both spending cuts and tax cuts. Canadians turned a large deficit that threatened to destroy their economy and credibility into a budget surplus. If Cuba can do it…if Canada can do it…the greatest nation in world history can do it bigger and quicker.

Here is the 20-point Reagan Libertarian Contract with America:

#1) One-Year Income Tax Vacation -- Award every taxpayer in this country a one-year income tax vacation. This plan costs about the same $1 Trillion that Obama spent on his failed Stimulus-to-nowhere. But watch this version of stimulus turn a bust to boom as taxpayers and entrepreneurial risk-takers invest record sums, now sitting on the sidelines, into business creation and expansion, stocks and real estate- thereby creating a jobs explosion.

#2) Welcome taxpayers back from the income tax vacation with a permanent and simple Flat Income Tax, combined with zero Capital Gains tax. This emulates the most successful economy in the world- Hong Kong. Start the flat tax at 20%, to be reduced to 15% when the budget deficit is reduced to no more than 3% of GDP. This combination will stimulate and reward risk-takers and small business innovators, thereby creating millions of new jobs.

#3) Offer “angel investors” a New Investment Tax Credit. Investors would receive dollar for dollar tax credits up to $100,000 for investments in IPO’s, secondary offerings, startups, and new real estate developments. This would stimulate the economy by rewarding entrepreneurship and job creation. Two of every three new jobs are created by small business. But almost 100% of these jobs come from business startups.

#4) Suspend the Employer Payroll Tax for two years. Small business needs a break. Give them two years without having to pay for the payroll taxes of their employees. The savings will be invested in new job creation, expansion of a business, a new startup, or capital improvements. Millions of new jobs will be created overnight.

#5) Cut the corporate income tax rate from 35% (currently 2nd highest in industrialized world) to a flat 15%...but in order to pay for it, eliminate all corporate welfare. We should support free market capitalism -- not a crony capitalist government that picks winners and losers, and awards favors, subsidies, and sweetheart deals to the biggest campaign contributors.

#6) Turn illegal immigration from a cost to a benefit. First, secure the borders with a combination of virtual technology and greatly enhanced border security. Then offer INSTANT CITIZENSHIP for any immigrant in the world that brings $250,000 or more to invest in a U.S. home or business within six months of arrival. This brings tremendous wealth to America; creates millions of new jobs; ends the real estate, foreclosure and banking crisis; and brings in new employers and employees to resolve the Social Security crisis.

#7) Social Security, Medicare and Medicaid are eating up the entire U.S. budget. They will single-handedly destroy the U.S. economy within twenty years. Social Security can be secured and the debt reigned in with an immediate rise in the age of retirement to age 68 for anyone younger than 55…and within five years raise the age of retirement again to age 70. This phase-in secures Social Security without raising taxes.

#7a) Combine this age raise with a Partial Privatization of Social Security for younger workers. This gives younger Americans ownership of their own retirement accounts. Upon death, it belongs to their family.

#7b) Convert Medicare & Medicaid into block grants and hand the entire budgets to the states. Let each state offer higher deductibles and incentives for recipients to save money on medical care. States get to keep the savings. This will turn the states into competitors, fostering competition to attract new residents and taxpayers.

#8) Legalize, regulate & tax online gaming and medical marijuana -- raising almost $300 Billion over the next decade, directed to deficit reduction.

#9) Dramatically cut the size of government with an immediate freeze of all government hiring; freeze all salaries; and immediately cancel all cost of living raises and step-up raises. This freeze should stay in effect until the average compensation of government employees is equal to the private sector.

#10) Implement government employee pension reform by changing from defined benefit to defined contribution plans (just like a private sector 401k). This eliminates all debate over age of retirement for government employees and how government pensions are funded. It no longer matters, as the government is no longer responsible for funding their retirement.

#10a) Ban unionization of government employees, thereby eliminating collective bargaining. Government employees shouldn’t be squeezing taxpayers.

#11) Pass a Balanced Budget Amendment to the Constitution to take effect after the end of the Income Tax Vacation.

#12) To achieve a balanced budget, institute dramatic cuts in government spending -- 30% across the board cuts for all departments, no exceptions (including military and defense) phased in over 3 years (10% per year). After that, limit any increase in spending to population growth plus inflation.

#12a) Give the President the line item veto to carve additional waste out of each and every bill passed by Congress.

#13) Audit all federal agencies and programs to determine if they or their spending are Constitutional. This would automatically result in the banning of TARP, stimulus and bailouts FOREVER.

#14) End the Iraq and Afghanistan wars -- that includes bringing home the 50,000 troops remaining in Iraq presently.

#14a) Demand Congress issue a formal declaration of war before fighting any future wars (unless responding in self-defense). This would reduce the likelihood of future wars, thereby saving taxpayers billions in potential deficit spending.

#14b) Phase out ALL foreign aid by cutting out 10% per year for 10 years -- thereby giving all our allies time to prepare.

#14c) Dramatically cut the number of military bases across the globe -- specifically Japan, Germany and South Korea. It is time for our rich friends to pay their own way.

#15) Repeal Universal Healthcare, institute Tort Reform, expand freedom of consumer choice (allowing consumers to buy across state lines), and expand HSAs (Health Savings accounts). Make all health costs -- including insurance -- 100% tax deductible.

#16) Education -- Eliminate the Department of Education, redirect the funds to the state and local level. Ban unionization of teachers. End tenure -- job security and compensation must be based on performance. Encourage school choice, parental freedom, and vouchers at the state and local level. A well-educated country is essential to the economic future of America. Teachers unions have damaged education almost beyond repair.

#17) Energy -- Encourage unlimited offshore drilling to dramatically lessen our dependence on foreign oil. But in return for unlimited drilling, end all special tax breaks and subsidies to the oil industry.

17a) Have the U.S. Government offer a $27 Billion prize to the company or companies that find an economical, domestically-sourced replacement for fossil fuel. The amount of this prize is roughly equal to the annual budget of the Department of Energy. By offering a prize for performance and closing down this agency, we save the taxpayers tens of billions in future spending. And once a company succeeds and claims the prize, we eliminate the motivation of going to war to secure access to foreign oil. This “open source problem solving” should be used to solve many of the biggest challenges facing our country.

#18) Perhaps most importantly, LIMIT THE POWER OF CONGRESS:

a) Limit all members of Congress to two terms.

b) Limit the amount of time Congress can meet to only four months per year. The less time they have to create more laws, the less damage they can do to the American people and the U.S. economy.

c) Limit Congress to passing only bills that are PROVEN constitutional (Enumerated Powers Act).

d) Place a three-year moratorium on passing any new rules, regulations or mandates on the American people or American business.

e) Immediately ban Congress from hiring staff with outstanding tax debts or liens. If the people that run the country can’t pay their tax bills, they have no right to ask us to pay ours.

f) Require that all bills be read out loud in front of a fully assembled Congress before voting on them. This will put an end to 2,000 page laws that no member of Congress ever reads, but all Americans are required to follow.

g) Post all bills online at least four weeks for public vetting before voting on them.

h) Mandate that all bills passed by Congress also apply to members of Congress.

i) Allow the legislatures of two-thirds of all states to overturn any Federal law or regulation. It’s time to provide states with a check on a runaway Congress.

#19) Forever ban the word “czar” from our government’s vocabulary. No President should ever be able to hire cabinet level executives without vetting and approval by Congress.

#20) Audit the Fed, then aim to eliminate this unaccountable organization that has done such damage to the U.S. economy.

This 20-point "Reagan Libertarian Contract with America" will put the U.S. economy back on solid ground. It will create millions of jobs- just as Reagan’s tax cut did in the 1980’s. It restores economic freedom. It rewards entrepreneurship. It stimulates small business. It limits the power of government- just as the Constitution demands. It proves that Libertarianism is the very heart and soul of conservatism. Ronald Reagan would be proud.

The author of the Reagan Libertarian Contract with America is Wayne Allyn Root, the 2008 Libertarian Vice Presidential Nominee. Wayne is Chairman of the Libertarian National Congressional Committee. His new paperback will be released next month, “The Conscience of a Libertarian: Empowering the Citizen Revolution with GOD, GUNS, GOLD & TAX CUTS.” His web site:

Citizen Revolution- One Nation Under Tea Party Revolt!

The Peasants With Pitchforks are Coming.

Obama continues to name Czars without any vetting or confirmation from Congress. His latest Czar – appointed only days ago -- was the “Asian Carp Czar.” I’m not kidding (I wish I were). Well if Obama thinks his unaccountable executives are “czars,” then King Obama and Queen Michelle must consider the rest of us serfs and peasants. But there’s a hitch in this scenario. When peasants with pitchforks decide to revolt, it usually doesn’t end well for the ruling class.

When I wrote my book, “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts,” I predicted that Obama’s radical Marxist agenda would lead to a citizen revolution, the likes of which had not been seen in this country since 1776. I predicted that this revolution to take back our country would be led by a coalition of Libertarians, conservatives, disgruntled Republicans, independents, taxpayers, small business owners, gun owners, patriots, and Christians. That revolution now has a name: The Tea Party.

And who are these new revolutionaries? Many of them are reenacting the ‘60’s revolution. They have evolved from peace and pot to pitchforks…from tie die to torches…from denim to deficit and debt…and from communes to condos. Today the Holy Grail isn’t Woodstock, it’s Washington. Why the change? It's called financial responsibility. The “me generation” is now all about THE GRANDCHILDREN. And the same people who changed the world in the ‘60’s with their passion and enthusiasm are about to change the world again.

The remarkable Tea Party victories on Tuesday night are yet more proof this is not business as usual. Entrenched incumbents and establishment D.C. insiders are being swept away like debris in a tsunami. Most importantly, it isn’t only liberal Democrat scalps the Tea Party is taking. At the top of the list are the enablers- big government RINOS (Republicans in name only). Exhibit A is Michael Castle. The longtime Delaware Republican Congressman is normally the kind of GOP insider that survives times of voter unrest. Political insiders like Castle have always known how to turn on the charm, raise lots of money, and use that money on advertising campaigns to convince voters that “next time” they’ll vote with the people. It’s always “next time.” Except for Castle there will be no more next times. This citizen revolution sent Castle to the unemployment line. Don’t let the door hit you on the way out Mike.

Castle is a RINO who votes gave bi-partisan cover to big government expansion and an ever-expanding welfare state. Castle was the exact type of Republican fraud who through his compromise and “bi-partisanship” (see SELLOUT) made fiscal conservatives and free-market Libertarians fighting for the survival of our children and grandchildren appear as “extremists, radicals and nutcases.” The reality is the extremists are those who have bankrupted our once great country and left us with over $100 Trillion in debt and unfunded liabilities.

It is the so-called “bi-partisan moderates” that have sold out our children’s future- saddling them with unsustainable deficit and debt for decades to come, in order to bring home the bacon to their districts today. GOP Rinos such as Castle and “blue dog Democrats” such as Nebraska’s Ben Nelson are the problem, not the solution. How can you be a “blue dog” when you vote for bigger government, universal healthcare, cap and trade, stimulus, bailouts, earmarks, and financial reform bills that demand banks give out small business loans based on affirmative action? How can you be a patriot and demand “Cornhusker kickbacks?”

In the end I’m rooting (excuse the pun) for V.E.T.O. -- Vote Everyone of Them Out. Republicans, Democrats, lawyers, lobbyists, union bosses, D.C. political insiders and incumbents of all stripes -- it’s time to clean house and throw all the bums out. If America is to be saved, it’s necessary to throw out both the socialist, entitlement-addicted Democrats and the establishment Republican enablers like Mike Castle, Charlie Crist, Rick Lazio, Lisa Murkowski, and Bob Bennett. The debt and deception stops here -- with the Tea Party.

The Tea Party candidates have been successful in primaries because they have been singularly focused on the most important and pressing issues our country faces today: the economy, jobs, government spending, government employees, and the unchecked growth of the deficit and debt. These issues should have been Obama's only priority. Instead, we got a healthcare bill that will ultimately bankrupt the country, more government employees, and a stimulus that only stimulated the ratings of Rush Limbaugh and Fox News. But wait, Obama isn’t done yet. He still has card check (unionize the entire nation) and cap and trade to ram through in the lame duck session of Congress after he’s lost in a landslide. And you wonder why the people are angry?

The peasants have awoken from a long slumber. The time for excuses and promises is over. All that is left is for the winners in November to deliver -- shrink government, cut government employees and pensions (as Cuba is busy doing right now), dramatically lower the deficit and debt, and dramatically reduce spending, while lowering taxes (as Canada has done for the past decade). Deliver or the Tea Party promises to throw this class of bums out just like the last one … and they’ll be patriots for doing so. As Thomas Jefferson once wrote, “a little rebellion, now and then, is a good thing…It is a medicine necessary for the sound health of government.”

Is Obama Smarter Than a Communist?

America loves the hit TV show “Are You Smarter Than a 5th Grader?” That inspired me to ask “Is Obama smarter than a communist?” Raul Castro, the leader of communist Cuba, just announced that Cuba is laying off 500,000 government employees. Bravo! It’s about time. Cuba is finally reforming their economy and headed in the direction of capitalism. Like China and the Soviet Union before it, Communist Cuba has finally figured out that everyone cannot work for government- at least not if you want your people to prosper, or your economy to avoid insolvency and bankruptcy.

I only wish we could say the same for America. Incredibly, President Obama is headed in the opposite direction. Under Comrade Obama, America is expanding the number of government employees and the size of the welfare state. Obama must not have noticed that after years of government control of the economy Cuba is an economic basket case, with its citizens living in abject poverty and misery. If he has noticed- and it’s kind of hard to miss- then why is Obama aiming America towards this disastrous Cuban model? Is it purposeful? Or pure idiocy, arrogance and ignorance?

Let’s compare Communist Castro’s economic ideas to our own leader, Comrade Obama’s:

While Communist Castro admits that having the government do more to control the economy and create jobs is a horrendous failure, our very own Comrade Obama has added over $4 trillion in debt to grow government, reward his Democratic cronies (with stimulus and bailouts), and control the economy to “create and save jobs.” Castro can only sit in stunned silence as Obama makes the same mistakes that ruined Cuba's economy and left his citizens in poverty and misery.

While Castro explains his cuts of government employees by saying “We can’t keep supporting inflated payrolls”, and is now encouraging entrepreneurship, small business creation and capitalist reforms, Comrade Obama steals from future generations to save government jobs, hire more government employees, and preserve the obscene raises, pensions and benefits of government employees (that are 70% higher than comparable jobs in the private sector). Only days ago Obama spent $26 billion more to save teacher union jobs for the very people that are presiding over the disastrous failure of government-run education. Where does Obama get the money to pay for all these government employees? By redistributing income from private sector taxpayers who are losing their jobs and small businesses due to Obama’s oppressive regulatory and tax burdens. Don’t forget that Obama exempted only one group from the rules, regulations, and taxes of Obamacare - government employees! Castro is shaking his head in disbelief.

Communist Castro is busy privatizing businesses - giving taxi licenses to entrepreneurs, giving land to free market farmers, and selling government-run barber shops to small business risk-takers. Communists are embracing free enterprise, free markets, entrepreneurship, small business creation, and fiscal conservatism. Meanwhile, Obama is busy punishing and micro-managing banks, Wall Street, and credit card companies, while orchestrating government takeovers of healthcare, automakers, student loans, manufacturing (through cap and trade), and everything else he can grab through Chicago-style intimidation and communist goon tactics. Castro can only shake his head at the tragic mistakes being made.

Communist Castro says, “Stop expecting too much from government.” He hints that there will be even more economic reform- perhaps ending or cutting back on government subsidies for housing, transportation and food. Meanwhile our Comrade Obama asks government to provide ever more- from student loans, to lifelong free healthcare, to asking government to subsidize delinquent homeowners. Under Obama we see record increases in Americans accepting welfare, food stamps, and free breakfasts and lunches at school. Castro is mortified- he already knows where heavy-handed government control leads.

Communist Castro says the free lunch for Cuban workers is over. He speaks of government employees who do little or nothing all day. From now on Castro says, “Workers will be paid according to results.” While Castro understands this is the only way to bring prosperity to his people, Obama is hiring more government employees to stand around and do nothing, while he supports government employee union demands for lifetime jobs, early retirement, and obscene pensions- none of which are available in the private sector. Hand in hand with his shameful bias towards government employees, Obama keeps extending unemployment benefits towards infinity. Why not? Afterall, next to government employees, Obama’s most loyal voting bloc is Americans receiving handouts from government.

Communist Castro is firing his Czars, while Obama names a new one on a daily basis- including only days ago, “The Asian Carp Czar” (No, this is not a joke). Did you ever think we’d see the day where Castro is shocked at the size of America’s government?

While Communist Castro says, “We must increase the number of jobs where Cubans can go into business for themselves,” Obama is punishing entrepreneurs and small business creators with gigantic income tax increases, healthcare taxes, capital gains taxes, dividend and savings taxes, and any other taxes he can dream up (such as a new VAT tax and possible new raises in FICA taxes for the self employed). It’s all enough to make Fidel Castro get up off his deathbed to shout “Viva La Revolucion!”

Communist Castro knows from experience why we have no new jobs in America. While Cuba moves away from communism with capitalist-style reforms, Obama leads America away from capitalism and towards Fidel Castro’s utopia of starvation, deprivation, levels of poverty never imagined in America (not yet anyway), and of donkeys pulling broken-down carts on the streets of Havana.

I can only conclude that Obama is NOT smarter than a communist. Communists at least learn from their mistakes. And if Obama isn’t smarter than a communist, then he’s most certainly not as smart as a 5th grader either.