Sunday, June 18, 2017

Reducing Ineffective Legislation and Improving "Honest" Government

If all politicians were narrowly focused on what is in the benefit of the nation we would not have a problem with misaligned values and inappropriate legislation. The problem is that it isn't always like this and other factors sometimes take precedence. Perhaps it never was meant to be that way. Politicians and the money that moves to them can create huge incentives to make decisions in favor of corporations in ways that can damage the needs of citizens. While these are unfortunate facts of government, it is possible to give business greater say in legislation while limiting their influence in the oversight of such legislation.

Business supporting of industry based research institutes that analyze common industry problems (i.e. pollution, mining, transportation, etc..) can improve legislative effectiveness. Industry gains increased power to propose beneficial legislation that meets government limits, restrictions, and quotas. They have a free hand in proposing legislation in an effort to curb regulations that also meet their needs.

To counter this increased legislative presence it is necessary to limit the amount of money that moves from the hands of big corporations to the political elite. The flow of money should not impact whether or not proposed legislation will pass. Campaign finance reform is a necessity for a more honest government that seeks to make decisions for the benefit of its citizenry.

In addition, concerns over increased corporate tax, and how this improves the attractiveness of the U.S. as a place of business had led to discussion on reducing corporate tax rates. Tax deductible donations to industry research centers provides opportunities to reduce corporate tax rate but improve innovation and research that has a long-term impact on national performance.

The goals of such changes are:

1.) Effective legislation that allows companies to expand and grow.
2.) Reduction of the influence of large corporate donations on legislative decisions.
3.) Improvement in innovation and research.
4.) Reduction of corporate taxes with longer term growth prospects.

Changes is a necessarily catalyst to growth. While we have experienced some low level growth over the past few decades the U.S. has not kept up with those of emerging markets. Mature economies are bleeding businesses and opportunity. Change becomes a catalyst for growth but that will require a new way of thinking about political compromise and legislation.

New ideas almost always come with resistance. Over time they can be accepted and improved upon. Of course these ideas must have practical utility. Republicans are very interest in protecting the business interest while Democrats often push the case of campaign finance reform to fight corruption. Legislation that makes sense is that which can create effective compromise. Republicans may accept tax breaks for money donated to industry research institutions that solve industry problems and promote streamlined and more effective national legislation while Democrats may accept controls on the influence of money in politics that lead to corruption. 

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