Last Monday evening the Tama County Republican Central Committee met with approximately twenty-five people being present. President Al Schafbuch announced he would be resigning his position as he was running for city Council in Dysart.
Dean Fisher, State Representative for the area spoke to the group, refreshing them on conditions at the State Juvenile Home. Fisher has spent some time with the group working on the changes at the Home and has been keeping all his constituents up to date on the changes.
Main speaker for the evening was Steve Rathje from Marion, Iowa, who is running for U.S. Congress. Rathje told a little of his life and how he started out as a janitor an where he was today. Rathje told the group there was no doubt that spending cuts which includes repealing Obamacare have to be considered as a major component in any economic plan. Rathje says Paul Ryan and many others have been talking about this for quite some time.
Rathje says along with spending reform must come trade reform and even more importantly tax reform if we are ever to see out good paying jobs return to America and our economy grow to its full potential. Holding trading partners that compete unfairly , responsible for their actions would be a huge step in the right direction, not to mention implementing a Fair Tax system, so that everyone is contributing , thus sharing the burden that paying taxes has imposed on every American household.
Rathje was asked why jobs have been shipped overseas. Rathje says there is three main reasons why jobs go overseas. No. 1 Taxes. No. 2 Regulations and No. 3 Organized Labor.
Rathje says the total income and payroll tax revenue collected by the government is right at $293.3 billion dollars every two months. Given that Rathje proposes we declare a income tax, payroll tax and corporate tax holiday for sixty days. This reflects an immediate $270.5 billion positive impact to the economy and relief to everyone earning a paycheck in the United States. The total loss in tax revenue to the government translates to around $22.8 billion which is the difference between the cost of a tax holiday and the total stimulative impact. Rathje estimates the tax break on the corporate payroll tax match alone would enable corporations to create or save up to 1.3 million jobs averaging $50,000.00 per year in pay and benefits.
Another proposal by Rathje would reduce the average income tax rate from 17.1% to less than 14%. The permanent across-the-board decrease adds $31 to the average weekly paycheck, or over $124 per month. Rathje says this would keep more of your hard earned money in your pocket where it belongs.
Another proposal mentioned was reducing the corporate income tax revenue by 62.5%, and top rate from 35% to 15%. The current corporate tax rate in United States is nearly 37%, now the highest in the world. This translates into an annual tax revenue of $304 billion which is crippling U.S. businesses and forcing them to do business overseas or in Mexico.
Rathje says the number of small businesses started in 2009-2009 was 518,500 and the number of closures was 680,716. Because one third of all new small businesses fail within their first two years of operation, due to being undercapitalized, and in an effort to increase their survival rate, Rathje proposes a federal income tax holiday during those first two years. The average income of most, if not all, small businesses is $269,590. Assuming small businesses that survive attain this income on average, saving just ten percent that otherwise would not have made it could generate more than 44.5 billion per year.
Rathje says he would welcome questions from anyone who wants to know about his philosophy and what he stands for. His address is PO Box 306, Marion, Iowa 52302.
The next Tama County Republican Central Committee meeting will be at 7:00 p.m. on September 23d at the Toledo Bank Community Building, and is open to anyone interested.