Partisan Economic Disputes By T.S.Khanna, Sept.20,2011

Foundation for Better Government

September 20, 2011.

Partisan Economic Disputes

By T.S.Khanna, September 20, 2011.

Every crisis offers some opportunities for some at the cost of some others. In the current economic crisis, each political party seems to seek opportunities to enhance its political capital at the expense of the national interest.

The solution to our economic crisis is relatively simple:

1. Identify the needed goods and services in the world market;

2. Provide those goods and services competitively in quality and price;

3. Adopt policies to lure back outsourced jobs and the out-going corporations by competitive wages for workers and taxation rates for corporations.

It is clear that neither the tax loop holes nor the practice of the unions going on strike are sustainable:

1. Abolish all the tax loopholes and adopt wealth producing tax-break incentives with a sunset clause and an annual review of their effectiveness;

2. Adopt a flat rate tax of 20% on personal income for all and 10% on capital gains to resolve the dispute about fair share of taxation;

3. Establish a Fair Wages Commission to be fair both to the unions and the employers. It is incorrect psychology of workers to compete with employers' profit. Profit making is risk taking for which workers are not liable.

Now, a party of non-partisan rationalists is needed to promote the national interest by adopting the right policies over wrong politics.