Changes American Action would make 

ECONOMY: (Click on link for more information)

Specific legislation needed to restore our economy
in the following sectors: Housing and Loan, Balance the Budget, Increase revenue through private sector Job Creation, General Economic Reform, Unfair Trade

Housing and loan sector
The FIRST legislation that must be passed is to immediately STOP bad practices in the financial industry. This can be done by:
1. No financial institution may be allowed to get so big it cannot fail and must be bailed out by the government - really the taxpayers. If a financial institution is mismanaged, the consequences are bankruptcy, not a bailout and golden parachutes for incompetent management. To monitor the fiscal health of the financial sector, business scores for all financial institutions should be set up and posted quarterly on the internet.

2. The government will no longer be allowed to guarantee loans or force lending institutions to make loans to clients who are not credit worthy. Eliminate political considerations for getting a loan. Loans can only be given to US citizens unless they have acceptable collateral in the US.
If the government wants to make high risk loans, they must be up front about it and appropriate taxpayer money for this scheme. The politicians responsible for this policy will be held accountable.

The financial meltdown of 2008 should never have happened. Clinton politicized the loan market with devastating results. President Bush saw the problem turning into a catastrophe but didn‘t fight hard enough to resolve it before it was too late.

3. The cost of housing is outstripping the ability of many to purchase a house. A law should be passed that gives the owner of a home the ability - if he chooses - to lower the asking price between 10 and 25 per cent below assessed value and get a tax deduction. For instance, if the assessed value is $250,000 and a deserving family can only afford $200,000, the seller can lower the price to $200,000 and get a tax deduction for $50,000 on capital gains.

 Balance the Budget

We must reduce spending. We MUST develop a legitimate plan to balance the budget.  This massive deficit spending is bringing us to national bankruptcy.

4. Since the federal bureaucracy exploded under Lyndon Johnson, every President since has attempted - and failed - to bring efficiency back to government. The simple fact is the present bureaucracy CANNOT BE REFORMED. There is no such thing as efficient Big Government. Audits of federal programs shows massive waste and large amounts of money that simply disappears.

The ONLY way to reform the government is to set up a new bureaucracy for essential programs and terminate ALL payments from the old bureaucracy. Anyone who gets anything from the government must reapply. WE NEED TO START OVER. This will save many billions of dollars.

5. Social welfare programs are out of control and unsustainable. They are corrupt, mismanaged and unreformable. The United States needs to go back to the traditional method of people getting out of poverty - through work and education and a safety net run by charitable/religious organizations that are already in place. 
This may seem harsh but it is not. We must stop trying to mandate outcomes and return to creating opportunities. People must take full responsibility for their own destiny. People are then free to help themselves or be poor. It’s their choice, NOT OURS. We can help the working poor become middle class and eliminate the bureaucrat at the same time by doing the following simultaneously:

A) Eliminate federal income taxes for single people making under $25,000 a year and couples making less than $30,000 a year. The fact that people working 40 hours per week cannot pay their bills and live a normal life is wrong. Taking these people out of revenue generation will not cause the deficit to grow, as welfare programs will be ended when these tax changes take effect.
At the same time, systemically deport illegals and replace them with US citizens. There are jobs in America because 12 million illegals are here working. We will reduce welfare checks by 20% per quarter for 1.25 years when welfare ends. As we deport illegals, they will be replaced by former welfare recipients. US citizens who refuse to hold a job receive no government assistance or unemployment.

B) Members of the dependency class (welfare, etc.) who are mad at loosing their free ride in life can renounce their citizenship provided they can find a country stupid enough to take them in. The US government will buy them a one-way ticket out of the country.

C) Double the tax deductions for the first 3 children.  After that get birth control or pay up.
D) The minimum wage should be survival pay until you get a better job. Right now the rate of $7.25 hr. is too low. If you raise it too much, low end jobs go away, which increases unemployment. If you keep the minimum wage too low there is no point in working, because you can’t make enough to live. There are lots of people to fill minimum wage jobs and therefore no incentive to offer higher wages.
We believe the minimum wage should be a two tier system. The rate should be raised in increments to $9 an hour except for people in banking and food preparation. Their minimum wage should be $10 per hour.

In attacking poverty, the minimum wage can NOT be the only method used to ensure a middle class lifestyle. It would have to be raised too much with dire consequences for the entire economy. It is part of a combined attack. Other ways for the poor to better themselves is the Earned Income Tax Credit, a graduated income tax that increases in one percentage increments, higher deductions for dependents and last but not least, continuing education.
E) For people who run up against life changing circumstances, low cost housing run by charitable/religious organizations should be used until people get back on their feet. This option is only for people with a good work history and would be in a decent location (not some inner city slum) for a limited time.

See "Poverty" for more information on the best way to attack poverty.

Increase revenue through private sector Job Creation

• Reduce the corporate tax rate from 35% to 20%. This will be less than most other industrial nations and bring jobs back to America. The lost revenue will be more than made up by accelerated business growth and employment.

Eliminate the tax on dividends and capital gains for companies that increase their capital spending.  This would promote growth and productivity gains and force business to plan for the future.
Eliminate stock buybacks.  If there are not appropriate investments for the business, force them to make acquisitions or distribute funds to shareholders.  The dividends that are received should be exempt from tax since the company was previously taxed on the profit.

Allow businesses to deduct the entire cost of buying assets in the same year they were purchased. Under current tax law, business must “depreciate” the costs over many years. This is a hindrance to business success and employment.
10. In recent years, many companies, large and small, have gone out of business because of excessive pay for top executives, exorbitant pay for unionized workers and overall mismanagement with excessive debt.  In the event a company reorganizes under bankruptcy laws or requires a government bailout, all contracts, including executive pay and union contracts would be invalid and have to be renegotiated after the creditors have been satisfied. This will provide much incentive for both labor and management to maintain the financial health of the company. 
General Economic Reforms


• Complete overhaul of litigation laws.  Many companies have gone out of business because of liability suits. Many companies have moved out of the country because of the FEAR of lawsuits.  The American economy would benefit greatly if all the money tied up in liability insurance and civil litigation could be put into the economy creating jobs.

There also needs to be a “dumb and dumber” law to protect businesses from stupid people who, for instance, put their hands under the power mower when it is running and lose some fingers and then file a civil suit against the maker of the lawn mower.  
When there is a legitimate suit, the compensation needs to be reasonable so the company stays in business and all the employees don’t lose their jobs at that company. 

• Complete overhaul of auto insurance liability. Auto insurers send out huge amounts of money to settle lawsuit claims. Auto insurance is a major drain on the individual and this will reduce auto insurance premiums.

• Anyone who is on long term work disability or on welfare has their name put online. This is NOT a privacy issue. Taxpayers have a right to know who is living off their money. If neighbors see the disabled person doing things that indicates they are not disabled, there is an 800 number to call.
13.  If a city files for bankruptcy or requires a government bailout, all contracts, including officials pay, union contracts and pensions for all employees and former employees would be invalid and have to be renegotiated based on current economic reality. This will provide much incentive for both labor and government officials to maintain the financial health of a municipality. 
• Labor costs (pay, benefits, pensions) for taxpayer financed jobs are exorbitant in some areas of the country. Since all these costs are dependent on the taxpayer, the taxpayer should be considered first. Taxpayers are being forced to pay for a lifestyle they themselves can’t afford and this is wrong. Therefore, voters will have final say for all contracts signed with all taxpayer funded employee unions. This would include teacher unions, police, firefighter and especially government employee unions, such as American Federation of Government Employees (AFGE), American Federation of State, County and Municipal Employees (AFSCME), etc.

See "Union excesses". How Public employee Unions will bankrupt America's cities - and the taxpayer.

• Change the way we deal with foreign tourists.  In a 2006 survey, the US was declared the most unfriendly country to visit by a wide margin because of visa delays and rude immigration officials.  Making common sense changes by Congress would bring foreign tourists back and pump billions into the US economy.

• The federal tax code is a mess. Nearly every year we read of some organization sending the same tax info to different tax preparers and most come back with different results. We should go with a combination of a lower graduated income tax and a national sales tax.

After a single person goes over $25,000 and a couple goes over $30,000 they go into the 2% tax bracket which increases as they make more money, to a top limit of 30%. Additional revenue would be brought in through a national sales tax.

For more information on a national sales tax (which could even replace the entire federal income tax, and all other federal with holdings -including social security & medicare), go to  

• Reinstate the “uptick rule” on the stock market which will greatly reduce volatility in the market.

• Eliminate foreign aid until the US balances its budget.  China and the Middle East oil exporters are rich - thanks to us - and they can pick up the slack while we get back on our feet financially. Israel is exempt since they are a true friend and an important strategic partner.
Unfair Trade


Many foreign made products are imported below cost. China is the primary offender.  Unfair trade is creating massive movement of business to China that does not make economic sense. We should evaluate the true cost structure of foreign imports by using current raw material and semi-finished product cost to determine if products are being imported below cost.

By enforcing fair trade rules that are now on the books we can bring nations that engage in predatory trade practices (mostly China) into line. The US should coordinate a united front against China with our allies around the world. With the strength of numbers we would have more leverage with China.
When a product is imported below cost, the US has 2 options:

1) Impose a large fine against the company. If the company does not cooperate, their products will be blocked at the port of entry into the US. We can also take this company to the World Court for a ruling.

2) If all the products in a certain sector from a particular country (for example: motorcycles, tires) are being imported below cost, an immediate tariff will be placed on all of those products being imported from that particular country.  (See “Global Trade”)

Many politicians say these actions would provoke a trade war with China. The reality is we have been in a trade war with China for 20 years and China is the only one fighting! We refuse to fight back. If we don’t fight back soon, there won’t be any economy to save.

Any product made outside the US must be in large print for all to see and displayed prominently.

China produces a large percentage of the world’s consumer goods. We need to break up the China monopoly. Start to move jobs to other countries. As we transfer production to other countries, we will have more leverage with China.
Food Safety:

Any food product which is produced using food imported from another country, especially China, must be clearly displayed on the package in type big enough to see.