American tax and labor policies are in a state of dysfunction, inactivity, stagnation, and chaos. We must restore functionality and logic to the American economy and its labor market as soon as possible.
Unemployment, being overworked and
overburdened with pressure to accept overtime hours, and struggling
to scrape together enough work-hours to qualify for benefits and make
ends meet, have all become severe problems in the United States.
In order to fix this
problem, each our overtime laws, our minimum wage laws, poverty
threshold laws, and laws on tax credits and basic income, need to
work together. Laws on taxes and labor need to be crafted in a
coordinated manner which makes sense, with each policy measure
logically proceeding from, and being justified by, and making room
for the other related policies being implemented, in order to help
fulfill the conditions necessary to achieve those policies' goals.
The following is a set
of proposals regarding laws on taxes, labor hours, poverty levels,
and related topics. But it is also a set of instructions for those
wishing to legislate on economic matters.
You can come up with
your own proposal like this; by going through each of the eight
topics, and choosing your favorite proposal from among the two or
three choices listed below them. I have called these options are the
“Conservative”, “Progressive”, and “Libertarian” plans,
which in some cases feature combinations or alterations. [Note: I do not mean to suggest that all conservatives would be likely to support the proposals I've termed "conservative", however; I only mean that the "conservative" reforms are the most conservative reforms, of the reforms I've proposed below.]
I suggest
highlighting your favorite proposal, crossing everything else out,
jotting down a few notes based on what's left, and adding your own
ideas.
This proposal can also
function as a political survey.
I recommend selecting
either the “a” option for all questions, or the “b” option
for all questions, or the “c” option for all questions. I say
this because consistency is important, given that the whole idea of
this article is to provide a framework for achieving an interlocking
set of proposals that make sense together.
But libertarians and
conservatives, conservatives and progressives, and progressives and
libertarians each have a specific set of things that they agree and
disagree about; therefore I will not discourage my readers from
mixing and matching. Just keep in mind that the consistency will be
diminished, and the problem may not be fully solved as the result of
your choices.
Feel free to e-mail me
at jwkopsick@gmail.com if
you have any questions or suggestions about this proposal and survey,
or if you would like to tell me your response to the survey.
Notes about the statistics referenced in this article:
The 6.7% unemployment rate figure (which I use to estimate a 26.8% "real real unemployment rate") is cited because the unemployment rate was 6.7% in December 2020. In January, that rate decreased to 6.3%, so adjustments should be made wherever necessary, when updating these statistics to generate policy suggestions conforming to the new economic reality and the new statistics coming out.
The 34.5 work-hours per week figure is based on statistics from 2019.
The original statistic was 34.4 hours per week, but I have rounded that to the nearest half an hour, for simplicity's sake. More precise numbers should always be used to generate final policy proposals. This article should be used only as a template and place-holder, until closer to the election for which it will be developed and perfected.
1. Reduce the standard number of work-hours per week which
the government intends to be the standard number used in regards to
the pertinent federal labor laws:
1a. (“Conservative”
or “simple/basic” option, only solves half of the problem but
could also be a major first step towards finishing the job): Reduce
the standard number of work hours per week from 40 to 34.5, the
average number of hours worked by Americans.
1b.
(“Progressive” or “complex/extra” option): Reduce the
standard number of work hours per week from 40 to 27.2,
to account for the number of unemployed people who would start
working if they could, which issues from the fact that “real real
unemployment” (i.e., U6
or U7) is at approximately 26.8% (so it would require reducing the 40
hours a week by 26.8%, down to 27.2 hours per week).
1c. (“Libertarian” option): Repeal all laws which establish or
suggest a uniform or target goal as it pertains to desired number of
work-hours per week (This would be difficult without eliminating vast
numbers of government workers).
2. Repeal or
amend overtime laws to reflect the need to reduce competition for
labor-hours between temporary and gig workers, underemployed people, and seasonally and structurally unemployed workers
(etc.) vs. overtime workers with secure jobs:
2a.
(“Conservative” option, assuming that 1a was followed and
completed): Keep overtime laws, but make overtime start at 34.5 hours
per week, without increasing the “time-and-a-half” pay
requirement for overtime work.
2b. (“Progressive”
option, which might make the problem worse): Keep overtime laws, but
make overtime start after 34.5 hours per week, and increase the
“time-and-a-half” pay requirement for overtime work to 175% or
200%.
2c. (“Libertarian” option): Repeal and
eliminate overtime laws
altogether, thereby reducing external pressure and incentive to work
overtime.
3. Set a goal to achieve an
average American worker income:
3a & 3b.
(“Progressive-Conservative” option): Set a goal to achieve an
average American worker income of $34,500 per year.
3c.
(“Libertarian” option): Repeal
all laws which establish or suggest a uniform or target goal as it
pertains to desired average American worker income.
4.
Raise the poverty level (up from $12,760 per year, per
single-person household):
4a. (“Conservative”
option): Raise the poverty level to $17,250 (equal to half of the
$34,500 per year goal).
4b. (“Progressive” option):
Raise the poverty level to $34,500 (the average annual income
goal).
4c. (“Libertarian” option): Repeal any and all
laws establishing or suggesting any sort of poverty level or uniform
poverty threshold.
5. Increase the minimum
wage, to adjust for cost-of-living increases and other economic
factors which need updating:
5a. (“Conservative”
option): Set a $17.25 per hour minimum wage. (This is based on the
premise that many people may still choose to work for forty hours a
week or more, and thus might not need $20/hr. At fifty five-day weeks
per year, that comes out to an annual income of $34,500 per year).
5b. (“Progressive” option): Set a $20
per hour minimum wage (to account for the fact that 34.5 hours of
work per week, for $20 per hour, for fifty five-day work-weeks per
year, comes out to $34,500 per year).
5c.
(“Libertarian” option): Repeal and eliminate
minimum wage laws altogether, in order to remove and criminalize all
external suggestions on prevailing, minimum, and maximum wages, which
may not only be unnecessary, but which also distort the market by
distorting price signals for wage labor. Allow the labor markets to
dictate the prevailing wage, and let the free-floating prevailing
wage to be the only wage rate that is considered “average”, or
remotely “official”, in any way.
6.
Create a tax exemption for poor people which is based on the
average annual income suggested by the new minimum wage and standard
number of work-hours:
6a & 6b.
(“Progressive-Conservative” option) Exempt all 18-year-olds (most
of whom lack proper tax documentation) - and all people 19 and older
whom disclosed their taxes the previous year - from all taxes, as
long as they do not earn more than $34,500 per year, and can prove
it.
6c. (“(Geo-)Libertarian” option) Exempt everyone
from taxes, except for people and businesses which profit from the
despoilation of land, and from the improper solicitation of taxpayer
subsidies and monopoly privileges. Eliminate all taxes which are
levied based on quantity, and only enforce tax laws against those who
use violence and/or destruction to earn their livings.
7. Establish an alternative minimum tax payment that
gives taxpayers some choice in regards to how they are taxed:
7a & 7b. (“Progressive-Conservative” option): Establish
an alternative minimum tax payment of $17,250, or up to $17,250, per year; and require that
taxpayers choose between the following: 1) report that your annual
income was over $34,500 and pay taxes; 2) report that your annual
income was under $34,500 and
receive an exemption
from taxes for that year; or 3) keep information about the amount you
earned private, but disclose the sources, and pay the alternative
minimum of $17,250.
7c. (“Libertarian”
option): Repeal and eliminate the alternative minimum tax
payment.
8. Provide a basic income (or
refundable tax credits which occur on a routine basis), or else pass
additional non-refundable tax credits.
8a.
(“Conservative” option): Pass non-refundable tax credits for
people with sick, young, old, and disabled dependents, and for people
earning slightly more than $34,500 per year but may still need and/or
qualify for assistance.
8b. (“Progressive” option):
Pass a universal basic income guarantee for all residents earning
less than $34,500 per year; providing a basic income equal to $17,250
per year ($1,437.50 per month).
8c.
(“Libertarian/Friedmanite” option): Pass a Negative Income Tax
proposal which builds on the voluntary tax information sharing
proposal. Those who elect to provide the amounts in their tax
receipts, shall receive refundable tax credits of an amount which is
equal to 50% of the difference between the amount they earned in the
previous year, and $34,500.
Written and published on February 5th, 2021
Edited on March 17th and April 22nd and 23rd, 2021
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