is growing around the world at misgovernance.
The protesters in Italy may be misguided at what they think their government should do - it does not make them any less angry.
What I think the American government should do (as a first step).
Cut $1.3tn a year of Corporate Welfare.
Use that money for massive tax cuts for the middle class and below, to raise disposable incomes and get bottom up spending going again.
Raising the income tax thresh hold to $45,000 would cost $500bn a year.
Reversing the payroll tax hike would cost $108bn a year.
Cutting Corporation Tax to 25% and closing all of the tax breaks and tax avoidance measures used by large Corporations to pay near zero tax, would be slightly more than revenue neutral.
I would then make the first $100,000 of profits tax free to give a large tax break to small/medium sized businesses.
The two measures above would start to get recruitment going again.
The question is then what to do with the rest of the circa $650bn a year just saved.
It could be a mixture of deficit reduction or further tax cuts.
There are a number of other things I would do as a first step, detailed in here :-
I would then work on cutting the next $500bn of government waste as a second step (with further government spending cuts later).
This would involve large numbers of reductions in government employees and the removal of entire departments like Education and FEMA.
And reduce taxes some more with the proceeds, with the emphasis on lower incomes and smaller businesses.
"In the end, more than they wanted freedom, they wanted security. They wanted a comfortable life, and they lost it all -- security, comfort, and freedom. When ... the freedom they wished for was freedom from responsibility, then Athens ceased to be free."
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