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Kasich believes that the government has grown to an unmanageable and inefficient size, which makes it more costly and less responsive to the public’s needs. Kasich argues that a brand-new economic plan is needed to strengthen our country and give the power back to states and communities.
Balance the budget
Kasich’s eight-year plan includes passing an amendment mandating a balanced budget because he believes Congress won’t tackle the problem unless the Constitution requires it. Non-defense discretionary spending would be capped at $593 billion annually for eight years, but defense spending would increase by $102 billion (17 percent) between 2017 and 2025.
Kasich would reform the Medicaid, Medicare and Social Security programs to efficiently spend money by being more individually specific and have funding allocated on a state level. To facilitate revenue growth, Kasich would reduce personal and corporate income taxes while trimming federal red tape.
Kasich will reduce the number of brackets for individuals and families from seven to three, cutting the top rate from 39.6 percent to 28 percent. The earned income tax credit would be increased by 10 percent, the estate tax would be removed altogether and deductions would be simplified.
For businesses, Kasich would lower the top business tax rate from 35 percent to 25 percent. The existing corporate tax rate would be lowered to encourage businesses return their foreign income to the U.S.
Federal regulation reform
Removal of inefficient red tape and regulations would reduce business barriers. To do this, Kasich would require a cost-benefit analysis for every new federal regulation to verify that its benefits are greater than the costs. He would also require Congress to approve regulations costing American over $100 million.
Shrinking the bureaucracy
Kasich wants to reduce the size of the federal government, and a state-to-state level of decision-making is his vision for doing so.
In terms of transportation, Kasich hopes to return the federal gas taxes to the states and let each decide their infrastructure needs to lower the costs of both time and money put into a project.
Education-wise, there are currently more than 100 federal education programs that Kasich would consolidate into four major grants to be returned to the states who would decide funding allocation. He want to minimize the Department of Education’s federal power, and leave it up to each state to manage their schools.
Medicaid would be reformed by allocating funds to states on a per-member, per-month basis and increasing the personal contribution users make.
Affordable and reliable energy
Kasich believes that to grow our economy and meet our energy needs, we must diversify our sources of energy by pursuing all types. He wants end our dependence on overseas sources by approving the Keystone XL Pipeline and exploring untapped reserves in the United States. He would eliminate the Clean Power Plan, leave fracking regulations to each individual state, and end the ban on U.S. oil exports.