Previously, I disclosed in this column reports about the real causes underlying the problems affecting the credit markets, the housing situation, the general economy, etc.

But, instead of taking appropriate action to lighten both the tax and regulatory burdens on job creating businesses, political machination was the choice of the Obama administration and congress. As a result, trillions of taxpayer dollars have been wasted on stimulus packages and government intervention into what is supposed to be a private, free-market economy.

Now, Washington politicians are talking of yet another stimulus package. They’re planning a giant political earmark targeted at keeping unionized public employees collecting paychecks beyond the November elections, while also subsidizing state spending programs that are long overdue for review and either cost reduction or cancellation.

Such an approach is not a fix. It’s not even an innovative idea.

For many months, I’ve urged readers of this column to stop unnecessary personal spending and increase thier savings. Financial responsibility remains a common sense issue for individuals; so why can’t the Government adopt it?

Government at all levels must go on a spending diet voluntarily; or be put on the strictest of diets by taxpayers. Specifically, across-the-board cuts in all tax arenas: payroll, income, dividend, capital gains, inheritance, as well as sales, excise and fees. 

Here are two examples of how it can be done: The Feds must cut payroll taxes for individual wage-earners — i.e. all employees.

Want to throw a bone to Washington politicians and controller-types populating federal bureaucracies? Let them decide whether to cut the employer side of payroll taxes. If they don’t, that tells us they are not fully cooperating. Personally, I would cut the employer side by the same percentage as the employees.

Then perhaps, it can be tied to reinvestment in hard assets that support job growth inside a domestic company, or, alternatively, specific new employee job slots. It would not be hard for the government to track at all. It would give government employees something to do.

Want bureaucrats to control it further? Have the company declare specific new employees as “reinvestment job slots” periodically. That would give government employees more to do.

You might say: “Wait just a moment, Rich. There are too many government employees. We could insist government use computers to do the tracking.” And, I would respond, “You’re right. It would take just seconds to do the same thing using computers!”

You get the picture.
At the state level of government, consider the following:

What would happen to your personal purchasing power if either the feds or your state government – or both – would cut, drop, or even suspend gas taxes?

Nationally, the combined burden of federal, state and local gas taxes costs American drivers an average of 45.9 cents on every gallon purchased, according to data from the Tax Foundation. Using their data, the federal tax on each gallon is 18.6 cents per gallon, so the average state tax added to each gallon is 27.3 cents. How much tax does your state add to the per gallon cost of gasoline?  Check into it. You likely will be shocked.

Each of us can stimulate our personal economy by taking action now to rein in personal spending, increase personal savings and pay down existing debt. And, we can insist that government at all levels immediately go on a spending diet of their own, because the government is obese. 

Government needs to shed spending and reduce its tax intake. “Shedding” requires government to suspend new programs, drop numerous existing programs and cut spending on retained programs.


“Intake Reduction” requires the cutting, dropping and suspending of “core” taxes.

Think you have a viable alternative?  The politicians may not want to hear either yours or mine. 

Richard Olivastro is president of Olivastro Communications and founder of Citizens For Change. He can be reached via e-mail: at RichOlivastro@gmail.com or by phone at 1-877-RichSpeaks.

Editor’s Note: Drivers in Alabama pay 20.3 cents of state taxes per gallon of gasoline, nearly seven cents below the national average.