Reg Rhodes – Madison Forum Speaker

Reg Rhodes of the Voters in Action Foundation spoke at our May 20 Breakfast meeting.  Mr. Rhodes’ message is: We have to find a way to make American goods and services more competitive by getting spending under control and passing the tax reform plan that, above all else makes this possible.  We have to educate people off the total misconception that the worst thing that could happen to this country is to have the other party win this election.  We have to have a longer view and be willing to sacrifice this election to send a powerful message to Congress that if the members to not support tax control and reduced spending, they will not be re-elected.

Mr. Rhodes cited several economic facts:

Our National Debt increases by $1.8 billion dollars every day.
See the  Debt Clock,  Debt History

It took 42 presidents, with help from Congress, 218 years to reach the first $5.6 trillion in National Debt.  The 43re president, with help from Congress, increased that debt almost 50% in less than six years.

There have been five tax increases since President Reagan lowered the tax rates and simplified the tax code.  Since then the Congress increased spending and racked up such deficits that they had to raise taxes.

He quoted several sources regarding our economic plight:

From the web site American Economic Alert: “America is becoming a declining player in advanced technology products.  The nation is at best standing still when it comes to services.  We are exporting those jobs.  There is a school of thought that services will replace manufacturing.  In reality, the service numbers are flat and the trend is town.”

From Andy Grove, former chairman of Intel: “America is in danger of following Europe down the tubes.  And the worst part is that no one knows it.  They are all in denial, patting themselves on the back as the Titanic heads for the icebergs full speed ahead.”

From Craig Barrett, Grove’s successor at Intel:  “Intel will be OK no matter what.  We can adjust and do our R&D and manufacturing wherever it is most advantageous to do so.”

Mr. Rhodes said that in the last five years Intel has opened up three leading-edge world-class chip making plants in China.  A company can’t have R&D separated from the manufacturing; so the services provided by a company will be outsourced along with the manufacturing.

He recommended Warren Buffet’s book, Squanderville and Thriftville, and said it will make one wonder how in the world did we ever allow ourselves to get into this situation.

The Voters in Action Foundation plans to invite a highly respected economist to form a non-partisan committee to do a study of various tax plans, such as the Fair Tax and the Flat Tax, and determine which is in the best interests of our country. Then the group will launch a mass-media campaign to educate the American people as to why the preferred tax reform plan will improve our economic situation.  Hopefully, the American voters will be encouraged to rise up and speak with one voice to demand that the representatives in Congress support the plan.

Mr. Rhodes’ final remark was that unless we lift tax reform above the level of partisan politics, it’s not going to happen, because our representatives care more about preventing the other side from winning than they do about serving our interests.

Check Neal White’s column for updates about tax reform.