League of Women Voters of California Education Fund
Santa Barbara, San Luis Obispo, Ventura Counties, CA June 3, 2014 Election
	Steve W. Isakson, PhD Answers Questions Candidate for United States Representative; District 24

The questions were prepared by the League of Women Voters of California Education Fund and asked of all candidates for this office.
Read the answers from all candidates (who have responded).

Questions & Answers

1. In this time of high unemployment and budget deficits, what are the most important steps that should be taken to improve our nation’s economy and sustain job creation?

The high budget deficits currently cause a drain on our economy. However, these deficits will cause severe long term problems for all sectors of our economy if the total debt is allowed to continue to grow much further. Control of our debt and liabilities is the most important long term issue facing our nation.

However, the use of budget deficits for decades has cause the economy to become "addicted" to high government spending. To suddenly kill all deficits over night will place more strain on jobs and the economy. The effects are ones we would eventually recover from, but attention is necessary to lessen the impact. As the economy improves over the next few years (probably about 5 to 10 years), the deficits should be gradually reduced to zero.

Surpluses should than be planned to slowly reduce the total debt. As the debt is reduced, so will the interest on the debt (assuming we avoid high inflation that might cause a rise in interest rates). As we lessen the budget, taxes (preferably as a trickle up (not down)) can be returned, which will greatly improve the economy. At that point, the government should be able to maintain an average balanced budget (see my web page for more details as to what that means) while further lowering the debt.

But that is a long term program, though one that needs implementing immediately before it is too late to achieve the results. In the near term several policy changes need to be implements to promote good paying job and lower the unemployment rate in real terms.

Part of the reason for the current high unemployment rate (in real terms, not just the government statistic) is the fact many jobs have moved overseas. To some extent, it is understandable. In some countries the labor costs are significantly lower than here. Businesses can become more competitive by utilizing that cheaper labor.

However, more and more businesses are using those footholds to secure tax avoidance schemes. Unfortunately these schemes are currently legal. But it is important to work with other nations and design our tax code to remove these tax loopholes. If these corporations want our protections, than they need to pay their taxes. The tax codes need to move to what is right and not just what is currently "legal". The solution is not to give these corporations a "tax amnesty" to bring their profits home, but to get the income properly taxed.

Another tax "loophole" has to do with moving "corporate headquarters" to a overseas tax haven and avoiding taxes that way. It may be difficult to deal with both this problem and the previous simultaneously, but there are many smart people who can try. However, one thing that would make a difference to some of the larger corporations is to realize that if their headquarters are overseas, than they should be treated as a foreign corporation. At minimum, that could mean they would not qualify for contracts with critical government programs. Loss of those contracts could be a significant loss to many of the larger firms.

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Responses to questions asked of each candidate are reproduced as submitted to the League.  Candidates' statements are presented as submitted. References to opponents are not permitted.

Read the answers from all candidates (who have responded).

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Created from information supplied by the candidate: May 11, 2014 06:27
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