Invert taxation in favor of majority paid to towns

Economy
1

The highest income tax rates are paid to the federal government. I propose that we invert the tax hierarchy in favor of the majority of taxes to be paid to cities and towns that provide the majority of services that taxpayers require and fund. Local government is good government and more transparent with greater stakeholder involvement. The method of taxation is irrelevant so long as the proportion of taxes paid go to cities and towns, county and state, and then the federal government.

  1. Federal waste would end by reducing the capital and mandate of the federal government
  2. The mandate of the federal government would contract back to providing for the common defense and regulating interstate trade.
  3. The empire that is fueled by constant warfare and that abuses our enlisted men and women would be reduced to national defense rather than using our military as mercenaries and neglecting our veterans
  4. Foreign aid would cease rather than come at the expense of American communities and families.
  5. Foreign aid can be privatized in the form of equity, not aid, where the more you take the more we as Americans own of your country from collateralized assets like mines, ports, airports, farmland, and the more we prosper from helping you.
  6. Contributions to “foreign equity” would be voluntary as part of self-directed retirement accounts to replace social security.
  7. Primary and secondary education would enjoy a windfall of household income and the services everyday Americans enjoy would improve dramatically.
  8. Wealthier households would have more to soend catalyzing cascading human, social and economic development.
  9. Work from home has turned homes into offices, gyms and places of business that will benefit from better infrastructure investments made by cities and towns.
  10. Welfare would shift to town sponsored initiatives to address homelessness, while joblessness would decrease from larger wealthier local economies. Opportunity zones would help cities and towns compete for investments based on how well they are managed and how well they zone and invest in infrastructure, education and skill development. Local labor market demand would then influence local education and skill development to qualify for an abundance of jobs with varying degrees of skill levels.

The fundamental problem that this solves is the extraction of wealth from communities without reinvestment. Local economies that retain more of the wealth that they generate will prosper and the spill over effect to neighboring towns and through competitive governance where civil servants can be paid competitive wages to attract the best will revitalize the public sector. Your local PhD, Doctor, Lawyer and others won’t need to look beyond helping their communities to find gainful employment using their advanced degrees. Successful models will prosper and attract new residents, and invite imitation from those seeking to catch up.