Greenspan Opposes Investing Social Security In Stocks

Max Sawicky sawicky at epinet.org
Thu Jan 21 06:38:59 PST 1999



> . . .
> My advice to American Labor is to push for the following legislative
> programs:
>
> 1) 3% prime rate

this is being persued, albeit in not quite as radical a form or extent;


> 2) moderate inflation 4-6%

ditto


> 3) 20% flat income tax with no deductions, with a high no tax threshold,

say $40,000 annual income

see below


> 4) Mandatory triple pay for overtime

right issue, not necessarily best remedy;


> 5) Constant job levels by location; jobs can be relocated only if equal
> number of jobs are re-created in the original site, coupled with a
> "portable" minimum wage regime. This permits upgrading without shut
> downs.

states can already raise their minimum wages and are being pressed to do so; states and localities have been pressed to legislate against plant closings; in a federal system, it's hard to imagine the latter such measures being set at the national level.


> 6) Negotiate capital/labor ratio by industry. When market
> capitalization increases through rise in share prices, wages and
> compensation will increase to keep c/l ratio constant.

hard or impossible to measure capital


> 7) Equal depreciation allowance for labor as for capital investment.
> Depreciation deductible for income tax purposes.

This plus your previous tax suggestion add up to a flat rate consumption tax, not quite as progressive as Dick Armey's.

cheers,

mbs



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