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LWV League of Women Voters of California Education Fund
Monterey, Santa Cruz, San Benito, Santa Clara Counties, CA June 5, 2012 Election
Smart Voter

Ronald Paul Kabat
Answers Questions

Candidate for
United States Representative; District 20


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, what are the most important steps that should be taken to improve our nationís economy?

A.) The government can assist in creating an environment to help private industry create jobs. One step can be instituted via a well designed tax system.

We must make a substantial change to our income tax system to: a.) create more productivity (jobs) in our economy; b.) increase tax revenues for our government to use to lower our national debt and shore up our Social Security and Medicare crisis; and c.) eliminate the harmful effects of Washington lobbyists.

1.) How it works - - The price of the products you buy includes a cost provision to account for income tax. The product's price could be lowered by a major tax system design change and product competition.

If the price could be lowered, then more individuals could afford to buy the product. If more individuals buy it, then more products might have to be produced to meet that increased demand.

End result - - more individuals would have to be hired to keep up with higher product demand. Additional income tax revenue would be provided to the government because of the increase in products sold due lower prices caused by the tax system design change. Again, part of the increased income tax revenue must be used to decrease our national debt and shore up our Social Security and Medicare crisis.

2. Food for thought - - - Our highest corporate income tax rate is currently 38%. It is the highest corporate income tax rate in the world. Our tax system and the rates must be changed to make our country competitive with the rest of the world. We also must undo much of the damage and unfairness that has been put into the current tax system by Washington lobbyists, special favors of our government officials and unintended consequences of poorly thought out income tax law changes.

Why would jobs go offshore to places like Ireland? Ireland currently has a -0-% corporate manufacturing tax for the first three years a company brings its jobs to their shores. After the fourth year, the tax rate goes to 10%. We CAN bring those jobs back to the USA.

3.) My idea to add to the system - - - I mostly agree with the Simson-Bowles Report on changing our tax system. However, I would also recommend that we change the individual income tax benefit currently given to individuals with dividend income.

My proposal would allow an individual income tax rate of -0-% to 15% to those citizens who want to invest in companies that have at least 60% of their job force here in the U.S.A.. It would cause higher taxes on the dividend income of those individuals who would want to invest in companies who have sent most of their jobs off shore.

For our international companies, I also agree with the Simpson-Bowles Report's position that we must transition to a Territorial Tax System.

Additional steps that the government can also take to help create a better environment for private industry to create jobs would be to a.) focus on trying to change economic policies, b.)reduce regulatory policies on business and c.) move quickly to transition our Federal 660,000 vehicle fleet into using our abundant supply of natural gas.

2. How should the federal budget deficit be addressed, now and into the future? How should budget priorities for defense and domestic programs be adjusted?

I agree mostly with the recommendations listed in the Simson-Bowles Report.

Drastically change the tax system as we know it, limit the Federal income tax revenue to about 21% of our Gross Domestic Product, cut program costs and apply the increase in tax revenue savings to the debt.

Unfortunately, the recommendations from the Simpson-Bowles Report are almost two years old. We must hurry to address our financial woes before our Social Security, Medicare and Medicaid systems come to a screaming halt.

3. What are your priorities with respect to our nationís energy policy? Should there be an emphasis on clean energy and reducing carbon emissions, and/or on reducing our dependence on foreign sources?

Our country doesn't seem to have an energy policy.

Since we have more than 100 years of natural gas, we must take advantage of that blessing. Natural gas is currently being used in some of the trucks that Waste Management uses for garbage pick up and some of the Monterey Transit System buses. The same gas can be applied to other vehicles. The exhaust emissions are cleaner than current vehicle emissions. Since our Federal fleet consists of more than 660,000 vehicles, we should also start there.

Our use of electric vehicles sounds great BUT they are currently primarily recharged with electricity that comes from coal fired electric generating plants. If we want to incorporate the use of electric vehicles, then we should convert to safe nuclear electric generating plants and avoid the tons of air pollution we currently get from the coal burning plants.

The same nuclear source goes for electricity needed for our homes. There's nothing bad about using solar, wind or bio-fuel BUT their time may not currently be now. We need more work in this area.

4. What, if any, changes should be made to federal health care policies or programs?

I am waiting for the U.S. Supreme Court decision on the Affordable Care Act this June.

I do believe that we have to support our medical care and safety net programs. However, I personally do not currently believe that the Federal government can Constitutionally order us to buy a product that we do not want to buy. If we don't buy the product, we are financially penalized. If we don't pay the IRS the penalties, then we are imprisoned. If we are imprisoned, then we get the product for free?

While waiting for that decision, I believe that we should 1.) allow the purchase of health insurance policies across state lines; 2.) limit the size of health related law suits across the nation; 3.) continue to focus on fraud within the system; 4.) increase the penalties upon professionals who are convicted of Medicare and Medicaid fraud; 5.) increase availability of Health Savings Account programs; and 6.) have the government negotiate the price of drugs from pharmacutical that are used for Medicare and Medicaid. (The Veteran's Administration has negotiated drug prices. Why shouldn't we do the same for Medicare and Medicaid?)

If the Supreme Court decision strikes down the A.C.A., it would be noble to continue to 1.) allow individuals with pre-existing conditions to be covered by health insurance; and 2.) allow students or dependents to continue to be covered under their parent's insurance coverage until age 26.

I would also consider the recommendations of the Simpson-Bowles Report.

5. What, if any, changes should be made to federal rules on campaign financing?

I believe that the amount of money in politics today is disrupting to our political systems. Gathering $1,000,000,000 for one political office race does not feel fair while our underemployment rate exceeds 15%.

I personally have not solicited funds for my campaign. However, to those who have offered me campaign contributions, I asked that the contributions be limited to no more than $99.

I am humbled that individuals have given me unsolicited campaign funds to help me help our Nation.

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 13, 2012 18:01
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