Renewing American Prosperity

By Tom Campbell

Our nation stands at a precipice. Over the last year, Congress has pressed radical policies that threaten our liberty, our prosperity, and the very stability of our free society. Growing unemployment, expanding government control, and an exploding deficit to pay for wasteful programs have created an environment of paralyzing uncertainty and accelerating decline. We must act.

Correcting the wasteful policies of the current Administration and Congress requires our immediate and unwavering conviction. We must eliminate waste and deficit spending and reverse the exponential expansion of government. Critically, we must battle unemployment with job-friendly policies to produce lasting job and economic growth. Through sound fiscally conservative policies, the current climate of uncertainty can be stabilized, ushering in a renewed prosperity for our country and securing our vital role in the world.

As California's U.S. Senator, I will work vigorously to implement the following policies:

1. Deficit spending and government waste must stop:

I will support immediately slashing the Federal Deficit for FY11 by over 50 percent with measures that include:

Cutting non-defense discretionary spending - $89 billion in savings Cutting unspent stimulus allocations in half, paying down the debt, using the other half to forgive the payroll tax for all new hires of those who have been out of work for more than 2 months - $292 billion in savings Applying $200 billion in repaid TARP to pay down the debt - $200 billion in savings Building coverage for Medicaid from the ground up to a fixed budgeted dollar amount to halt the runaway yearly cost increases - $45 billion in savings

I will fight tirelessly for a balanced budget without raising taxes.

I propose reinstatement of Gramm Rudman Hollings, a law that has now been allowed to expire, to require across-the-board cuts if the President and Congress do not reach agreement on specific yearly deficit reduction goals that had been set in advance.

I will insist on a review of the charter and results of all federal agencies and eliminate unsuccessful and outdated programs.

I will reject taxing the newly defined "middle class rich": Many middle class Americans have been redefined as "rich" so the President can increase taxes and justify massive new entitlements and government takeovers. With 50 percent of federal income tax currently being paid by 4 percent of the population, there is no basis in fairness to tax a newly defined "middle class rich." The President's proposed tax increases of the "middle class rich" and small businesses should be vigorously opposed.

Finally, I will advocate fiercely for a comprehensive review and elimination of 
unwarranted, wasteful, and expensive entitlements. There can be no "sacred cows" when it comes to eliminating government waste. All government waste, regardless of the program, should be on the cutting block.

2. Job-friendly policies designed to grow employment and our economy must 
be promoted:

American Competitiveness must be restored.

America is no longer competitive. It is not because of labor rates. It is because of the war on capital formation waged by the Congress. Capital investment is fundamental to the building of the factories that make our automobiles, computers, chemicals, semiconductors, and most other manufactured products. The Chinese and other foreign nations are friendly to capital investment - the U.S. is one of the most unfriendly. We are a competitive people; we need a competitive Congress to win the battle for manufacturing dominance in the 21st Century. I will fight to grow jobs by supporting the infrastructure necessary for job growth, including:

Lower capital gains taxes Increase the rate of depreciation schedules of capital equipment Reduce corporate taxes to promote hiring and to eliminate the disadvantages U.S. companies face in comparison with foreign companies competing with us. I will resist the Obama Administration's efforts to impose special taxes on American companies competing overseas that their competitors do not have to pay International Trade Reform:

Reciprocity - I strongly believe in continuing the pattern of lowering trade barriers that we have begun under GATT, and continued under WTO. However, as future trade rounds afford us the opportunity, we should seek to move the international trading regime to a rule of reciprocity. America should open our markets to the products of other countries on the same terms those countries have opened their markets to our products, as opposed to the present trade regime that allows our trading partners to treat our products worse than we treat theirs, so long as we are not treated worse than any other country Halt unfair trading advantages due to foreign countries' currency manipulation Push IP protection higher in the priorities of the Administration in bilateral trade negotiations and evaluate meaningful sanctions for countries that permit IP pirates to flourish

Litigation reform, including forcing the loser of a lawsuit to pay some or all of the attorneys' fees of the winner Lawful immigration, including H1B's and temporary guest worker programs, combined with increased border security and enforcement of our immigration laws Support the privacy and choice in the workplace by supporting a secret ballot and opposing "card check"

Energy policy must support job and economic growth.

Energy costs now exceed labor costs in many of the manufacturing plants in America. Automation from the last century is now ubiquitous and requires competitive energy costs. Technology is changing both the transportation and the generation side of energy. From nothing a decade ago, biofuels are now powering more than 8 percent of our transportation needs; this must grow along with other technologies such as those used in electric vehicles so that our falling demand for foreign oil can continue reducing our reliance on expensive imports. On the electricity front, our current lowest cost provider - nuclear - must be re-introduced. Wind can also play a competitive role. Recent large finds of domestic natural gas must be developed as do nascent programs in solar, fuel cells, and fusion technology. The role of government is to lower the regulatory burdens imposed on all these technologies, and to create a capital structure that rewards investment and innovation. Capital gains reduction is key here; the President's proposal to tax capital gains, dividends, and income of higher income Americans is contrary to our competitive interest.

Job stifling regulations must be reformed.

Regulation, much of it established decades ago in a different time, strangles American business - particularly small to medium size businesses. Many of these regulations produce more reports than will ever be used in improving the operations of our companies. A massive review and reset is in order. I will fight to reduce the burden of unnecessary and job stifling regulations on our economy by:

Subjecting regulations to a rolling review, requiring the agencies involved in promoting them to re-justify their existence Including sunset clauses on any new regulations so as to force review of their necessity on a regular basis. President Ronald Reagan did much good in this area through use of the Paperwork Reduction Act, and an OMB committed to lowering the unnecessary burden of regulatory compliance on employers; we need to restore that function in OMB

Meaningful stimulus is necessary for putting people and industry back to work.

Redirect a portion of unspent "stimulus" to tax relief for businesses to promote real job and economic growth Strengthen and make permanent the existing R&D tax credits

Our country must have the #1 education system in the world, especially in science and technology.

Continuation of Pell and Perkins' grants, and at the California state level, Cal Grants Increase emphasis on basic math and science skills to prepare students for higher education Review Department of Education programs and support programs that demonstrate real results. Refocus programs that are not showing demonstrable results Shift higher education financial aid to low or zero interest loans with debt forgiveness for performance (e.g., each semester), success (e.g., obtaining a degree or certificate), or public service like teaching in needy neighborhoods Support an increase in collaboration between University students and researchers and private sector technology companies to promote the efficient development 
of applied technologies with industrial applicability as well as an educated high tech workforce

3. The destabilizing growth and intrusion of government must be rejected:

Government expansion breeds waste and instability. The massive takeovers and the expansion of government are destabilizing our society and fostering an environment of paralyzing uncertainty rooted in out-of-control deficits and potential disruption of our health system, our financial system, and our energy infrastructure.

Government must be restrained, and in its place, we must empower the unlimited creative energy of free and enterprising individuals in our society to tackle our nation's problems. To regain public confidence and restore stability, I will fight to:

End irresponsible deficit spending (see above).

Reverse the massive government intrusion into the health care system. The recently passed health care legislation expands the government role far too broadly, creating fear and instability in our country. It must be corrected and refocused. Health care reform should focus on:

Building Medicaid and other existing government programs from the ground up to a predetermined dollar amount Address the long term unfunded liabilities of Medicaid and other health programs through new approaches including an open health care provider bidding system to drive up service and drive down prices Repeal of the federal antitrust exemption for insurance companies, and passage of federal laws to permit the interstate sale of insurance policies Implementing policies to reduce costs and increase efficiency including serious 
tort reform

Impose a cost-benefit test on any proposal for new regulations on the financial and energy industries, to ensure that we are not damaging America's competitiveness.

To restore public confidence, reinstate some version of Glass Steagall, and take steps to protect against ever again creating the "too big to fail" doctrine.

Split-off Social Security from the General Fund to end the practice of obscuring the true size of our federal budget deficit and the uncertainty of our citizens in the security of their retirement.

Leaders of industry, California's high tech pioneers, financiers and CEOs have all spoken out in their support of my detailed economic plan:

Bill Davidow + Co-founder, Mohr Davidow Ventures, Former Chairman of Rambus Corporation and Former Senior VP at Intel

Floyd Kvamme + Partner Emeritus, Kleiner Perkins Caufield & Byers

Paul M. Wythes + Founder, Sutter Hill Ventures

Jim Smaha + Former Executive Vice President & General Manager, Semiconductor Group, National Semiconductor

Chet Pipkin + Founder and Chairman, Belkin International

Tom Fallon - CEO Infinera

Fred Bialek + Former Executive Vice President and General Manager Systems Group, National Semiconductor

Kip Hagopian + Managing Partner, Apple Oaks Partners; Chairman of the Board, Maxim Integrated Products; Co-founder, Brentwood Associates

Jim Cunneen - Former Silicon Valley Assemblyman, Former CEO Silicon Valley Chamber of Commerce

Ed Zschau - Silicon Valley entrepreneur and Professor, Princeton University School of Engineering

Tom Siebel + Founder and CEO, Siebel Systems

Rob Chandra + Managing Partner, Bessemer Ventures

Wilf Corrigan + Founder, Retired CEO, LSI Corporation

Franklin Pitcher "Pitch" Johnson + Founder, Asset Management Company

Harry Sloan + Chair, MGM

Russell Pyne + Founder, Atrium Capital

Jim Diller Sr. + Founder, PMC Sierra

The Honorable Rebecca Morgan - Former California State Senator, Former CEO of Joint Venture Silicon Valley

Paul H. Stephens + Chairman and Partner, Stephens Investment Management

TJ Rodgers + Founder and CEO, Cypress Semiconductor

Jim Morgan + Former CEO and Chairman Emeritus, Applied Materials

Chad Walsh + CEO, Fountainhead Law Group P.C.

Pat Brockett - CEO, Summit Microelectronics

Charlie Sporck - CEO, National Semiconductor

Malin Burnham - Vice Chairman, Cushman & Wakefield

Mark Flegel - President and CEO, Flegel Home Furnishings, Inc.

Bill Oberndorf - Managing Director, SPO Partners& Company

Richard Bingham - President, American Industrial Partners

Justin Chang - Principal, JTC Investments, Inc.

Lloyd Harvego - CEO, Harvego Enterprises

Roger J. Baccigaluppi - Chairman, RB International

Bill Draper - General Partner, Draper Richards

Stephen J Luczo - Chairman, President & CEO, Seagate Technology

• **Titles are for identification purposes only and do not imply organizational endorsements