KEN STREMSKY DISCUSSES ECONOMIC POLICIES, TAXATION, AND OTHER TOPICS I believe the ideas in this resume will reduce invasion of privacy and improve our educational system. PART OF MY ECONOMIC PLAN I have an extensive economic plan on my website. People may e-mail their ideas on how to improve the economy to me. One. The social security tax rate should not be greater than 5 percent. It is now more than 6 percent. The social security tax should be placed on all wages a person makes in a year and not just the first $84,900. If payroll taxes are not placed on the first $20,000 in wages a person makes in 2003 our economy will also be helped. Two. The first $10,000 that a person makes in a year from interest from savings accounts, dividends, and capital gains should not be taxed. I believe the Federal Government should not tax any income that a person receives form interest from savings accounts, dividends, and capital gains. Three. The Federal Government should allow businesses to deduct the dividends they pay out from their taxable income. I read this idea on Slate.msn.com on January 6, 2003. Four. If a person works for a company and pays for an individual health insurance plan, the person should be able to receive the same tax deduction that the Federal Government allows self-employed people to receive for health care. If a person works for a company and has a group health insurance plan, the person should be able to receive the same tax deduction that the Federal Government allows self-employed people to receive. Five. The following great idea was in a letter to the editor that was in the January 14, 2003 Union Leader on page C5 and it was written by Spike. "Having received my tax forms, I have a modest suggestion for those who want to busy themselves with changing the brackets. Change the second-highest bracket from 35 percent to zero. That is, promise anyone who earns $141,250 next year that the next $165,800 he earns will be tax-free. If you insist apply it only to "earned income" and offer it only to people who weren't in that bracket last year. How much will it "cost the government"? Very little, as most of the income we aren't taxing would otherwise not have occured at all. Once a person realizes that his usual effort lands him at the end of the 30 percent bracket, do you understand how frantically he will throttle up to earn some extra, income tax free? Creating second jobs, hiring more people, taking risks, volunteering for overtime, learning a better job, buying better tools. All of these benefit others, benefit the nation, and create wealth on which other taxes will be paid." Six. Congress should allow individuals and businesses to deduct the full cost of solar energy producing panels from their federal taxes. The more energy that our country obtains from solar energy producing panels the less energy we will need to obtain in the future from oil, coal, and nuclear fusion. People and businesses should be allowed to deduct the full cost of hydrogen fuel cells from their federal taxes. Hydrogen fuel cells are discussed on The Hydrogen & Fuel Cell Letter at http://www.hfcletter.com. Seven. Congress should consider passing a rent control law that says that the rent of an apartment in a year may not increase at a rate greater than five percent above the property tax rate increase that year in the locality the apartment is based in. Eight. Congress should have the Department of Housing and Urban Development build more low income and moderate income apartments and houses. A part of the Department of Housing and Urban Development should be similar to Habitat for Humanity. It would help people own apartments and/or houses via sweat equity the way that Habitat for Humanity does. The National Services Administration could help the Department of Housing and Urban Development build apartments and houses. Nine. I hope states and localities will reduce their sales taxes, income taxes, and business profits taxes. When taxes are reduced, individuals and businesses are more likely to buy goods and services. When consumption of goods and services increase jobs are more likely to be created and wages may increase. Ten. Congress should increase the budget of the Small Business Administration significantly and have it help many businesses in inner city areas, rural areas, and other parts of our country grow via long term low interest loans and mentoring. Eleven. Many junior high schools and high schools should have cooperative education programs. Cooperative education has helped many Northeastern University graduates be successful. Twelve. Congress should fulfill its Article One, Section Eight trade agreement making responsibility and pass many trade agreements with foreign countries. Congress has not fulfilled this responsibility in many years. Congress and not the President of the United States of America is supposed "To regulate Commerce with foreign Nations." Trade Promotion Authority is not constitutional. NATIONAL SERVICES ADMINISTRATION I hope Congress will create a National Services Administration which will have a Secretary of the National Services Administration. The National Services Administration would have benefits similar to the Military Trainers Division I discuss on my website. People who are 13 years old and older would be able to apply for short term and long term assignments. Some assignments would last a day. Some assignments would last months. People who work for the National Services Administration would help to improve our schools, libraries, rural hospitals, and other things. They would help to renovate schools, libraries, hospitals, and housing controlled by the Department of Housing and Urban Development. The National Services Administration would help create and update the free federal education websites that I want the Federal Government to create. Any person who has internet access would be able to use the federal education websites at no charge. The websites would help teach reading, writing, speaking, foreign languages, k-12 subjects, college subjects, and graduate school subjects. TRADE TREATIES AND OTHER TREATIES The fastest and best way to get trade treaties and other treaties adopted is to involve several United States Senators in all negotiations dealing with treaties. Article Two, Section Two of the United States Constitution says the President of the United States of America "shall have Power, by and with the Advice and Consent of the Senate, to make Treaties, provided two thirds of the Senators present concur." Trade Promotion Authority is not constitutional because Trade Promotion Authority takes away the ability of the United States Senate to give advice on treaties. The United States Constitution doses not give the United States Senate the ability to vote away any of the powers the United States Constitution gives the United States Senate. If an Amendment to the United States Constitution is passed that gives the President of the United States of America, Trade Promotion Authority, I will not use Trade Authority because I want to be the President of the United States of America and not an emperor. The logical response to people who say that they do not want the United States Senate to give advice on treaties because they think the United States Senate giving advice on treaties slows the adoption of trade treaties down is the fastest way to get any treaty and/or law passed is to eliminate Congress and the United States Supreme Court and give to the President of the United States of America all the executive, legislative, and judicial power of the Federal Government of the United States of America. If a person thinks it is a good idea to give all the executive, legislative, and judicial power of the Federal Government of the United States of America to the President of the United States of America, I hope the person will put six bullets into a gun and play Russian roulette alone. FEDERAL GOVERNMENT EDUCATION WEBSITES The Federal Government should create websites that have text, audio, and video that teach foreign languages, history, English composition, geography, mathematics, science, sex education, Economics, business administration, the law, and other topics. The Federal Government websites should teach information taught in k-12 classes, college classes, and graduate classes. The Federal Government websites should be free to use by anyone who wants to use them via the Internet. The Federal Government should work with many high schools and colleges to create the educational websites. OUR NATION'S ECONOMICS POLICIES If you want to obtain information of economics, I recommend you contact the University of Chicago and the Massachusetts Institute of Technology. I am sure both the University of Chicago and the Massachusetts Institute of Technology will disagree with me on many economics policies I discuss in this section as well as other parts of my political resume. I believe the Board of Governors of Federal Reserve System should have a great deal of independence from Congress, the executive branch of government, state governments, and the United States Supreme Court. When monetary policy is controlled by short term thinkers, depressions and hyper inflation are more likely to occur. The website for the Board of Governmors of Federal Reserve System is www.federalreserve.com. I believe Congress should make sure that the federal tax code dealing with individuals and businesses is less than 500 pages long. A shorter tax code may reduce tax evasion, tax avoidance, reduce the need for individuals to hire accountants to do their taxes taxes, and save individuals who do their own taxes many hours of aggravation. I believe quotas on imports are usually a bad idea. I believe tariffs on exports are usually a bad idea. I believe that price floors and price ceilings are usually a bad idea. I believe Congress should eliminate federal, state, and local taxation of interest from savings accounts, dividends, capital gains, and estates because capital formation would probably increase significantly and people would probably be less dependent on Social Security and Medicare after they retire. I believe Congress should pass a law which says that federal tax rates for people who make less than $100,000 a year should not be greater than fifteen percent. I believe Congress should pass a law which says that state income taxes may not be greater than five percent. I believe Congress should pass a law which says that local income taxes may not be greater than two percent. I believe Congress should pass a law that says that state sales taxes may not be greater than five percent. I believe Congress should pass a law that says that local sales taxes may not be greater than two percent. Congress may want to pass a law which says that state property taxes may not be greater than an amount Congress sets. Congress may want to pass a law which says that local property tax rates may not be greater than an amount Congress sets. Congress may want to pass a law that says that says that state taxation of business profits may not be greater than an amount Congress sets. Congress may want to pass a law which says that local taxation of business profits may not be greater than an amount Congress sets. I do not have a problem with placing a price floor on steel made by domestic producers and foreign producers. A price floor would keep steel from being sold for less than an amount Congress sets. I do not have a problem with setting price floors for many agricultural products. I think price floors in agriculture are usually a better idea than farm subsidies to farmers especially farm corporations. Congress may want to set price ceilings for educations provided by public colleges and public graduate schools. A price ceiling would not allow a year of education to cost more than an amount Congress sets. A price ceiling for a course would not allow a course to cost more than an amount Congress sets. Congress could set different price ceilings for different courses. believe in increasing fair trade. I am against Trade Promotion Authority for the President of the United States of America because I believe Trade Promotion Authority is not constititional as well as stupid. Trade treaties are treaties and treaties according to the United States Constitution require the Advice and Consent of the United States Senate because of Article Two, Section Two of the United States Constitution. Congress may want to place price ceilings on drugs that are based on research paid for by the Federal Government, state governments, public colleges, and public graduate schools. Congress may want to place price ceiling on other drugs as well. Price ceilings on prescription drugs may reduce innovation and research done by pharmaceutical companies. I believe that Congress and/or the United States Supreme Court needs to say that liability may not be greater than an amount Congress and/or the United States Supreme Court sets because Amendment Eight of the United States Constitution says that excessive fines shall not be imposed. Congress and/or the United States Supreme Court may cap liability at different amounts for different types of liability including liability connected to pain and suffering. Congress may want to pass a law that says that cities and states may not place price ceilings on apartments and houses that have more space than an amount Congress sets. I think price ceilings on apartments has reduced the number of apartments available for rent in New York, New York and other places. I think price ceilings on apartments and houses has reduced the amount of apartments available for low income housing and moderate income housing. Congress may want to allow some people who live in public housing apartments to buy the apartments they live in. Congress may want the Department of Housing and Urban Development to build and own more low income and moderate income apartment buildings. The apartment buildings should probably look like houses instead of apartment towers. DISCUSSION OF FLAT FEDERAL TAXATION ON INDIVIDUALS AND BUSINESSES I believe that Congress should make sure that the federal tax code dealing with individuals and businesses is less than 500 pages long. A shorter tax code would probably decrease tax evasion, tax avoidance, reduce the need for individuals to hire accountants to do their taxes, and save individuals who do their own taxes many hours of aggravation. Flat rate taxation on individuals and businesses might decrease tax evasion and tax avoidance significantly. Flat rate taxation might bring in more revenues for the federal government than our graduated taxation system does because a lot fewer people and businesses might stop practicing tax evasion and tax avoidance. The Federal Government might also obtain a lot more revenues from our underground economy than the Federal Government obtains now if flat rate taxation occurs. I do not know at this time what the flat tax rates should be for the following sections. If you have feedback on what you think the flat tax rate should be in a section and what the exemption from the flat tax rate should be, please e-mail at kstremskyforsenate@yahoo.com. I may e-mail you back. Please do not e-mail me attachments. SECTION ONE Congress may want to place the same flat tax rate on individuals and businesses and place this on all income earned in a year with a flat yearly deduction. or Congress may want to eliminate the Social Security tax and the Medicare tax and place a higher flat tax rate all income earned by individuals and businesses in a year with a flat yearly deduction. The Social Security Administration and Medicare would obtain funding from regular federal taxation. SECTION TWO Congress may want to place the same flat tax rat on yearly income earned by individuals and businesses that does not come from interest from savings accounts, dividends, capital gains, and estates and have a flat yearly deduction. I do not think any government should tax interest from savings accounts, dividends, capital gains, and estates. or Congress may want to eliminate the Social Security Tax and the Medicare tax and place a higher federal tax rate on all income yearly income earned in a year that does not come from interest from savings accounts, dividends, capital gains, and estates and have a flat yearly deduction. SECTION THREE Congress may want to decide not to place federal taxation on businesses. I discuss why Congress may not want to tax businesses in my BUSINESS TAXATION section. If Congress decides not to tax businesses, Congress would probably have to place a higher flat rate tax on individuals than would come from doing what I said in sections one and two. FEDERAL BUSINESS TAXATION Congress may not want to place federal taxes on businesses. If Congress does not place federal taxes on businesses, businesses might reduce the prices of many products and services. If Congress does not place federal taxes on businesses, many businesses may increase wages and employment. If Congress does not place federal taxes on individuals and businesses, many businesses may increase dividends. If Congress does not place federal taxes on businesses, they may spend more money on research and development. If Congress does not place federal taxes on businesses, the stock price of many businesses might increase. If Congress does not place federal taxes on businesses, businesses may contribute more money for the health care of employees. If Congress does not place federal taxes on businesses, inflation might decrease. If Congress does not place federal taxes on businesses, many businesses might contribute more money to pensions for employees and more money to the 401(k) plans of employees. If Congress does not place federal taxes on businesses, many businesses may decide to pay for undergraduate and graduate educations for their employees. If Congress does not place federal taxes on businesses, many businesses may contribute more money to k-12 schools, colleges, graduate schools, and libraries. NATIONAL SALES TAX A national sales tax may be a very bad idea. A national sales tax may decrease consumption. When consumption of an item decreases, people often lose their jobs. A national sales tax may hurt people on fixed incomes. A national sales tax may hurt people who do not make much money each year. A national sales tax might increase the revenues the Federal Government obtains from our underground economy. If Congress does decide to have a national sales tax, Congress should not tax education, health care, and food. If Congress does decide to have a national sales tax, Congress should not place the tax on clothing that costs under $500. If Congress does decide to have a national sales tax, Congress should not place the national sales tax on jewelry that costs under $500. If Congress does decide to have a national sales tax, Congress should not place the national sales taxs on automobiles that cost under $50,000. If Congress does decide to have a national sales tax, Congress should not place the national sales tax on houses and/or apartments that cost under $500,000. If you think Congress should pass a national sales tax rate, what do you think the rate should be? If you think Congress should pass a national sales tax rate, do you think there should be a yearly exemption and what do you think the exemption should be. If an exemption is passed, people could obtain money back from the Federal Government by mailing copies of receipts to the Internal Revenue Service. If you think Congress should pass a national sales tax rate and eliminate the federal income tax, what rate do you think the national sales tax rate should be? Please do not mail me attachments. Please e-mail at kstremskyforsenate@yahoo.com. I may e-mail you back. I might not e-mail you back. FEDERAL TAXATION The taxation system I describe in this section may increase living standards in the United States of America and help people be less dependent upon governments. The taxation system will probably need to be adopted gradually over a ten year period of time. The first $50,000 in interest from savings accounts that an individual and/or business earns in a year should immediately be tax free. The first $50,000 in dividends that an individual and/or business earns in a year should immediately be tax free. The first $50,000 in capital gains that an individual and/or business earns in a year should immediately be tax free. The United States of America might consume a lot less electricity if more homes and businesses use flourescent light bulbs. The Federal Government should allow people and businesses to deduct the full cost of flourescent light bulbs from their federal taxes. People usually do not need to obtain as much assistance from governments when taxes are lowered. People are less likely to need money from Social Security after they retire if they are taxed less during their working years. After Congress reduced tax rates in the early 1980's, tax revenues increased significantly. The Federal Debt increased significantly because spending increased at a faster rate than the rate that revenues increased. People who want to raise taxes on the rich should remember the following. When taxes are increased on the rich, their consumption decreases. When the rich buy fewer boats, the people who make the boats lose their jobs. The amount of capital available to individuals and businesses will probably increase after taxes are decreased. When the amount of capital increases, the cost of capital will probably decrease. Individuals and businesses should not have to pay estimated taxes. Individuals and businesses should only have to pay taxes on a quarterly or yearly basis on money they have actually made. The alternative minimum tax should be eliminated. Individuals and businesses should have the same basic tax rates. Congress may also use tax incentives. No income tax on yearly income earned below $20,000. Five percent tax on yearly income earned between $20,000.01 and $50,000. Ten percent tax on yearly income earned between $50,000.01 and $100,000. Fifteen percent tax on yearly income earned over $100,000.01. Interest from savings accounts and dividends should not be taxed because people should not be punished for saving and investing. Businesses should be allowed to deduct the dividends they pay out from their taxable income because this will encourage more businesses to pay dividends. I read the previous idea on Slate.msn.com. The capital gains tax should be eliminated because people should not be punished for investing. The estate tax should be eliminated because governments should not benefit financially when a person dies. The June 5, 2002 Wall Street Journal page D1 has an article with the title "FedEx Delivers: Its Small New Dividend Gives Hope That More Firms Will Follow" by Jonathan Clements. Congress should pass a law which says that if a business pays out at least 50 percent of its operating earnings in a year in the form of dividends the business should not have to pay a federal tax rate that year greater than ten percent. Individuals and businesses should be allowed to deduct the full cost of their capital losses from their federal taxes. Individuals and businesses should be allowed to carry forward their capital losses to following years until the capital losses have been used up. Example: An individual loses $20,000 investing in the stock market or loses $20,000 when the individual sells a house for $20,000 less than the person paid for the house. The person makes $30,000 a year. The person should be allowed to deduct the capital loss from federal taxes from that year as well as following years until the $20,000 is used up. This provision will encourage more people to invest in the stock market. Individuals and businesses should be allowed to deduct the full cost of local and state sales taxes, income taxes, and property taxes from their federal taxes. People should be allowed to deduct the full cost of individual health insurance, dental care, and all their other health care expenses from their federal taxes. People should be allowed to deduct the full cost of short term disability policies, long term disability policies, and long term care insurance policies from their federal taxes. Students, parents, businesses, and others should be allowed to deduct the full cost of public and private k-12 educations, undergraduate educations, and graduate educations from their federal taxes. Individuals and businesses should be allowed to deduct contributions to public libraries and contributions to non profits from their federal taxes. Individuals and businesses should be allowed to deduct the full cost of mortgages from their federal taxes. Individuals and businesses should be allowed to deduct the full cost of fuel cells and solar energy production panels from their federal taxes. Individuals and businesses should be allowed to deduct the full cost of automobiles the Federal Government says are fuel efficient from their federal taxes. The Federal Government should include hybrids that run on electricity and gasoline as well as other types of automobiles. The November 19, 2001 BusinessWeek on page 26 says "Toyota Motor Corp.'s midsize Prius car already offers 48 miles per gallon, using a self-charging hybrid engine." The September/October 2001 AAA Northern New England Travel & Lifestyle Magazine on page 16 says the Toyota Prius delivers "52 miles per gallon in the city and 45 on the highway." Individuals and businesses should be allowed to deduct the full cost of computers from their federal taxes. Individuals and businesses should be allowed to deduct the full cost of internet access from their federal taxes when the access is obtained via phone, DSL, cable, wireless, and/or other methods. Congress should decide if mail order catalogs and internet businesses should have to collect local, state, and federal taxes from their customers. HEALTH CARE TAX Congress should place a one percent health care tax on the yearly incomes of individuals greater than $100,000.01. Congress should place a two percent health care tax on the yearly profits of businesses greater than $10,000,000.01. The tax could help the Federal Government pay for health care. The health care tax should not be placed on interest from savings accounts, dividends, capital gains, and estates. EDUCATION TAX Congress should place a one percent education tax on the yearly incomes of individuals greater than $100,000.01 a year. Congress should place a two percent education tax on the yearly profits of businesses greater than $10,000,000.01. The education tax will help the Federal Government pay for education. The education tax should not be placed on interest from savings accounts, dividends, capital gains, and estate taxes. SUPERFUND TAX You may find information about Superfund at www.epa.gov. Congress should place a one percent Superfund tax on the yearly incomes of individuals greater than $100,000.01 to help the Federal Government cleanup Superfund sites, dispose of hazardous wastes, nuclear wastes, and other types of waste. Congress should place a two percent Superfund tax on the yearly profits of businesses greater than $10,000,000.01. The Superfund tax should not be placed on interest from savings accounts, dividends, capital gains, and estates. LOWER TAXES TO ENCOURAGE LOW COST HOUSING Congress should pass a law that encourages the building of low income housing by lowering federal income taxes, state income taxes, state property taxes, and local property taxes of multi-family low cost apartment complexes. Congress should decide what the tax deduction should be. The Department of Housing and Urban Development should decide which apartment complexes qualify. LOCAL AND STATE TAXATION I hope that many local governments and state governments will reduce their state income taxes, property taxes, sales taxes, capital gains taxes, and estate taxes. When taxes are reduced, individuals and businesses are more likely to buy more goods and services. When consumption of goods and services increase, jobs are likely to be created and wages may increase. If local and state governments reduce their sales taxes, people will probably buy more products and unemployment will probably decrease. If state governments increase their taxes significantly when the economy is in bad shape, they are likely to cause our economy to be in a lot worse shape. SOCIAL SECURITY The May 11, 2002 Financial Times has an informative editorial with the title "The wages of longevity" that I recommend people read and may be viewed on the website of the Financial Times which is www.ft.com. I believe the money raised for the Social Security system from the social security tax should only be used for the social security system in non major emergency situations. The last time our government had a situation that I characterize as major emergency is World War Two. I believe that money in the Social Security system should only be used for government activities unrelated to the Social Security system when at least sixty percent of the members of Congress vote that a major national emergency has occured. I do not think the money in Social Security should be used to buy any type of government bond other than a bond backed by the Government National Mortgage Association. I want the Social Security Trust Fund to have assets that have real value now such as assets sold by the Government National Mortgage Association, certificates of deposit, index mutual funds sold by Vanguard Group which has the website www.vanguard.com, and regular savings accounts. The social security tax is the highest federal tax that people who make under $20,000 a year pay. The suggestions I make in this section will decrease the probability that the social security tax will be increased on people who make under $20,000 a year. The social security tax should not be greater than five percent for individuals. The social security tax should be placed on all wages a person makes in a year. Businesses should match the social security tax contributions made by their employees. Businesses should pay a three percent social security tax on yearly profits above $10,000,000.01. Social security benefits should not be taxed. I hope the earnings test will never again be placed on people who are at least 65 years of age. I would prefer that an individual who makes more than $100,000.01 in a year not receive money from the Social Security Administration that year before the "normal retirement age" of 65 is increased. The "normal retirement age" for social security should stay 65. Black men are less likely to make it to 65 years of age than white men. I hope People will be allowed to invest at least 25 percent of their social security tax into mutual funds and stocks. People should probably only be allowed to invest more than 10 percent of their social security tax into mutual funds and stocks if the budget of the Securities and Exchange Commission is increased significantly and the regulation of accounting firms is improved significantly. People will not need to obtain as much money from the Social Security Administration if the Federal Government stops taxing interest from savings accounts, dividends, and capital gains. If the Federal Government does not make changes soon, a future Congress will probably place a social security tax that is greater than ten percent on all wages a person makes in a year, make businesses match these contributions, increase the "normal retirement age to 80, and not allow people who make more than $30,000 in a year to obtain money from the Social Security Administration that year. Allan Sloan who works for Newsweek wrote a great article in the August 13, 2001 Newsweek with the title "A Simple Social Security Solution." The article discusses allowing the Social Security Administration to buy federally backed mortgages which are backed by the Government National Mortgage Association which is also known as Ginnie Mae. MEDICARE Medicare should have features similar to the Federal Employee Health Benefits Program discussed on the U.S. Office of Personnel Management. You may find info on the Federal Employees Health Benefits Program by going to http://www.opm.gov/insure/health/index.htm. I believe that the money raised from the Medicare tax should only be used to fund the Medicare System when Congress has not declared a major National Emergency. The medicare tax should never be greater than five percent for individuals. The medicare tax could be two percent on the first $50,000 in wages a person makes in a year. The medicare tax could be three percent on wages made between $50,000.01 and $100,000 a year. The medicare tax could be five percent on wages made above $100,000.01 a year. Businesses should match medicare tax contributions made by their employees. Businesses could pay a two percent medicare tax on yearly profits made above $10,000,000.01. Prescription drugs should be part of medicare. Prescription drugs may reduce hospital stays. Medicare might want to charge Medicare's participants who make more than $20,000 a year a $5 or $10 co-pay for each prescription.