As the Election Politics takes the center stage, a burning question looms amongst all the candidates as to how to revive the US Economy. I agree there are no quick fixes, but the process has to begin we need to address this critical question sooner rather than later.

We have noticed that the US has economy started its downfall in the 90's starting with the decline in manufacturing that saw large Multinational Corporations (MNC's) moving its operations to China, Indonesia, Malaysia, Singapore and South Korea. We need to focus on a return to Manufacturing in the US, this will only happen if the US seriously creates a competitive environment to set Manufacturing in US.

We need to start offering competitive low interest loans to Corporations that manufacture in the US and offer accelerated depreciation for deduction of manufacturing costs, hence the Tax Policy is an effective instrument for encouraging Manufacturing activity in the US.

At the same, we need to reduce the Corporate Tax Rates in the US to remain competitive in the G7 and the G20 bloc of countries. Currently, the US has the 2nd largest Corporate Tax Rate in this group. No wonder MNC's are moving their operations out of the US.

Even, Britain is committed to reducing its corporate tax rate to remain competitive with other G7 and G20, as evidenced by the Chancellor of the Exchequer making the goals of his budget as follows;

"the Chancellor published a whole section of The Plan for Growth , a companion document to the Budget produced by HM Treasury on how the United Kingdom was able to achieve these objectives and it even contains measurable benchmarks as follows;

1. The lowest Corporate Tax Rate in the G7 and among the lowest in the G20
 
2. The best location for corporate headquarters in Europe.

3. A simpler and more certain Tax code.

It is said that the "Chancellor has tailored his policies to address these three criteria."

The Best thing the President or any other Presidential Candidate should do is to cut the Marginal Taxes, Cut the Social Security Taxes, and cut the Corporate Taxes to be competitive with the rest of the G7 and G20 (I agree with our member PeterAccountant).

In addition, we need to reform and cut back the IRS and encourage the States to do away with the Franchise Tax Boards etc and have the States levy Sales Taxes instead! There would be marked increase in production and we can then see if this works to boost the economy, apparently, it has worked out really well in TEXAS!!!

However, the elimination of the State income taxes means the State has to fund its expenditure from other revenue sources. Texas has instituted the Sales Tax. But, so has NY and NJ! So, where is all the Revenue from NJ and NY Sales taxes collected going? I think both NJ and NY is wasting a lot of revenue in Bureaucracy and wasted projects. Once there is plenty of Tax monies pouring in, there is a lot of room for corruption. However, when there is little tax monies coming, every project is scrutinized carefully to avoid wastage and potential fraud!

Budgets will be balanced by law!! There will be no deficits, periods!

Why do we have State Income Taxes, the rest of the world doesn't have it?