A Conservative Plan

Outline for Recovery, Progress and Domestic Tranquility

by Hudson Barton

Conservative Fiscal and Monetary Stimulus

Build things that help to defeat our enemies, improve our efficiency, and promote
individual freedoms. Otherwise, cut spending.

1. Develop domestic energy because the USA’s energy deficit is getting worse
every year and it is our enemies that are profiting from it. Provide huge
investments to become energy independent within 10 years.
a. Fund research in domestic renewable energy and conservation
b. Require power companies to buy electricity from small commercial and
home generators through net metering devices.
c. Through low interest loans and deregulation, build a national energy
infrastructure that includes:
i. “Smart grids”
ii. Automotive natural gas and hydrogen and/or electric refueling
d. Through low interest loans and deregulation,
i. Quadruple domestic nuclear generation capacity
ii. Quadruple domestic wind, solar and other renewable generation
capacity from commercial grade facilities
iii. Quadruple domestic energy production from oil, natural gas, oil
sands, gas shale deposits, and clean coal.
e. Convert government operations to 100% non-petroleum domestic energy.
2. Infrastructure Investments. Make huge investments in roads, bridges and air
travel
3. Cut discretionary spending by 30% over 3 years… 10% per year
4. Infuse the banking system with as much monetary stimulus as necessary

Conservative Regulation
Deregulate wherever possible. Re-regulate where needed.

1. Get state government out of interstate business. Force states to give up

utility, insurance and banking regulation. Re-regulate all of them at the federal
level.
2. Banking System, corporate bailouts, and markets
a. Eliminate so-called "mark to market" rules for banks.
b. Invest in preferred stock of companies, but never common stock.
c. Allow companies to go bankrupt
d. Do not offer federal guarantees, subsidies or protections on any type of
 investment or loan except for FDIC insurance.
e. Eliminate the charter of FreddieMac, FannieMae, SallieMae, and all the
Savings & Loan Associations.
f. Create a federal gold bond (see “Entitlements” below).
3. Liability Laws
a. Change our liability system so that loser pays court and legal fees. Stop
our courts from running games of chance.
4. Corporate Regulation
a. Eliminate or drastically soften Sarbanes Oxley regulations (which cuts
American efficiency by as much as 4%)

Conservative Taxation
Simplify taxation at all levels.

1. Sales Excise Consumption Tax

a. Impose a new national sales tax with a 5% rate
b. Exempt exports and investments only
c. No exemption for services
d. No exemption for any specific item category such as food or rent or tuition.
e. No exemption for Internet and mail-order sales.
f. No exemption for non-profits
2. Corporate Income Tax and Personal Income Tax (merged)
a. Allow deductibility of dividend payments for corporations
b. Treat capital gains as ordinary income.
c. Discontinue all superfluous classes of corporation and partnership
d. Flat rate of 20%
e. No deductions except for business expenses
f. Eliminate the AMT, the gift tax and the estate tax
g. Increase the personal exemption to $2500.
h. Eliminate all tax-deferred savings accounts…. Replace with entitlement
accounts as below

Conservative Entitlements
If entitlements have the element of individual choice and personal responsibility, then
they are acceptable to conservatives.

1. Universal Medical Care. This replaces the entire Medicare and Medicaid
system
a. 1:1 matching contribution up to $2500 per citizen for amounts deposited
into a medical account.
b. Investments in federal long term gold bonds only (tax free). Backed by
real gold.
c. Withdrawals allowed only to licensed medical practitioners or for medical
 insurance.
d. The balance in a medical account is a personal asset that, upon death,
can be used for funeral expenses, given away or willed to anyone.
e. No personal deposits beyond the $2500/yr.
f. $2500 contribution is not tax deductible.
g. Withdrawals are tax free

2. Universal Retirement Security. This replaces the entire Social Security System
a. 1:1 matching contribution up to $2500 per citizen deposited into a
retirement account.
b. Investments in federal long term gold bonds only (tax free). Backed by real
gold.
c. No personal deposits beyond the $2500/yr.
d. $2500 annual contribution is not tax deductible
e. Withdrawals allowed only after age 70. Withdrawals are tax free.
f. Social Security system to make a one-time deposit equal to the present
value of each citizen's future Social Security payments… turning Social
Security into an annuity. Issue long term federal gold bonds to cover the
initial cost.

3. Universal Education. This replaces all Federal support for public and
secondary education
a. 1:1 matching contribution up to $2500 per citizen deposited into an
education account. Age 5 to 25 only.
b. Investments in federal long term gold bonds only (tax free). Backed by
real gold.
c. No personal deposits beyond the $2500/yr.
d. $2500 annual contribution is not tax deductible.
e. Withdrawals are tax free.... to licensed schools only until age 25. Balance
is rolled over to “Universal Retirement Security” at age 25.
f. License schools at the federal level, including private and home school
providers (a.k.a. parents). Charge a token fee. Require these schools
and home school providers to achieve federal performance standards.