Report By Richard Geno
Mike Brady, attorney and political activist, provided our last Standing-Room-Only audience at the American Legion Hall with lots of great ideas on turning the state and the country around. While most of his remarks related to creative ideas for the state of California, he started with comments about the national scene.
Mike pointed out that the ObamaCare legislation was devastating, and it eventually must be totally repealed. However, as long as Obama is president, repealing it is impossible since he can veto any bill that would overturn the bill. His first suggestion follows what he predicted would be an historic vote in November, 2010. He predicted that 2010 would not be like 1994, but more like 1946. He predicted that the Republicans would far outpace the 40 seats needed to takeover the House of Representatives with 70 House Seats.
Then, in 2011, while ObamaCare cannot be repealed, funds can be denied. The law can be defunded in 2011 and 2012; and after the 2012 elections, it can be repealed. He also encouraged the Republican Congress of 2011 not to provide one dime to fund the EPA's efforts to regulate energy carbon emissions.
Mike Brady used the famous quote of George Santayana, "Those who know not history are condemned to repeat it." He referred to the states as 50 laboratories to see how things do well. On a national scale, we have five great lessons that have resulted in substantial gains in the economy. Every single time that taxes have been cut, tax revenues have swelled. The five great lessons are as follows:
1925 - Harding-Coolidge tax cuts led to the "Roaring 20's"
1960 - Kennedy tax cuts led to a good economy
1982 - Reagan tax cuts initiated 25 years of a robust economy
1986 - More Reagan tax cuts funded the defeat of the Soviet Union, and created 35 million jobs 2002-03 Bush cuts led to tremendous increases in government revenues, which were unfortunately used for greater government spending, but did create 7 million new jobs.
Mike contrasted California with Texas and Florida, two states that have no income tax. Both have lower sales taxes and property taxes than the United States, and neither has deficits. They spend 20% less per student on education, but their educational systems both rank in the top five in the country. California has the highest paid teachers in the US, and we rank last in education.
For the state of California, Mike suggested a 5-part Constitutional Amendment initiative process that he referred to as "radical surgery" as follows:
1. Income tax for the state of California shall never exceed 5% (top rate is currently 13%)
2. Cut corporate income taxes in half.
3. Suspend income tax and capital gains tax for 10 years for any company whose principal business is in California.
4. Prohibit the California legislature from meeting for more than 90 days in a year (creating a part-time "citizen legislature")
5. Cut salary of legislators in half, and provide no benefits. (The legislators would be expected to get their health insurance, retirement plans from their full-time jobs in the private sector).
Mike predicted that this would bring business back to California, and balance the California budget. He suggested that these initiatives be placed on the ballot sometime in 2011.
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