THE ECONOMY: Orange County Speaks Out : ‘Tax Incentives to Move Into HMOs’ : TERRY HARTSHORN: PRESIDENT, PACIFICARE HEALTH SYSTEMS
Republican, 46, Corona del Mar.
Since I’m in health care, my first suggestion would be in the area of health care. It appears that health maintenance organizations are working. They’re controlling costs, and the quality of health care is high. So I would suggest providing tax incentives to companies to move their employees into HMOs. And I would design a system for the uninsured through HMO delivery. I would then advise the move of all segments of the federal government to HMOs--either mandatory or by incentives--including Medicare, Medicaid, federal employees and the health care system for veterans.
Next, I would encourage lending from banks, so we can get investment flowing again and more jobs. The federal lenders have tightened up. They’re afraid to lend any money.
I would suggest incentives for increasing jobs, getting people back to work. One way is a capital-gains tax reduction. A flat tax on individuals’ and corporations’ incomes should be implemented. An individual below a certain income level should pay no tax. Above a certain level, he should pay a flat tax. That would be fair to all parties. A flat tax would generate more revenue, but it’s a fair taxation policy. This would mean you wouldn’t have individual deductions. It would simplify the system and make it fair for everyone.
I would also suggest providing incentives for balancing our trade deficit and working hard at balancing the federal budget.
YOSHINORI TAURA: PRESIDENT, MAZDA MOTOR OF AMERICA INC., IRVINE
‘Stem the Tide of Protectionism’
54, South Orange County
I would urge President Bush to do everything possible to stem the tide of protectionism that is rising in this country. Restrictive or retaliatory trade policies will not help stimulate the American economy, as their proponents claim, either in the short term or over the long term. They will hurt America’s economic performance and competitiveness.
If a trade war erupts and legislation is passed restricting sales of Japanese vehicles, the biggest victim will not be the Japanese auto industry; the loser will be the American consumer. Trade restrictions would hurt the public in many ways. Not only would it limit the choices they now have but also the quality, and most importantly, would lead to higher prices. Estimates are that restrictions on Japanese cars would cost every American car buyer several hundred more dollars on average. And for the nation on a whole, restrictive trade legislation would hurt the economy by limiting foreign investment.
KATHRYN G. THOMPSON: PRESIDENT, KATHRYN G. THOMPSON DEVELOPMENT CO.
‘Come Up With a 5-Year Plan’
Republican, 51, Dana Point.
We’ve got to stop this partisan bickering, call an economic summit of Democrats, Republicans and business leaders and come up with a five-year plan the same way a business does, rather than a short-term Band-Aid.
We need to abolish the capital gains tax and bring back passive losses, but what we really need is to look at the whole tax structure.
We need to give every person a chance to work, and make sure through welfare reform that every person that’s able is working. We should give them the education to do this.
The thing that’s hampering home construction is that the banks can’t make loans.
LONA LUCKETT: DIRECTOR OF OPERATIONS, BETTER BUSINESS BUREAU
‘Promote Capital Investment’
Democrat, 35, Chino Hills.
The economy will improve when companies expand and begin hiring again. That in turn will revive consumer confidence, which is the key to economic growth. This might best be accomplished by a selective revision of the tax laws. Specifically, we need a tax policy which will promote capital investment. I would therefore encourage the President to continue his push for a reduction in the capital gains tax to 20% and for the reinstatement of an investment tax credit for new purchases of property, plant and equipment.
I would ask that he rethink the wisdom of the luxury tax, which has caused the loss of jobs in certain domestic industries.
LES MCCRAW: CHAIRMAN, FLUOR CORP. COUNTY’S LARGEST COMPANY
Balance Reforms, Business Needs
Republican, 57, Newport Beach
A healthy business environment creates jobs and spurs economic growth. America needs to create an environment which recognizes that the needs of business directly affect job maintenance and creation.
All too often the legislative process fails to recognize the symbiotic nature of employment and business. Employment levels are impacted by a variety of seemingly unrelated issues, such as onerous permitting procedures, environmental considerations, workers’ compensation, tort reform, escalating taxes and unrealistic regulatory requirements.
It is the Administration’s responsibility to balance the necessary social and economic reforms against the backdrop of the nation’s overall welfare without losing sight of the business/employment equation.
JAMES DOTI: PRESIDENT, CHAPMAN UNIVERSITY
Immigration Liberalization
Republican, 45, Anaheim.
In a perfect world, I’d make three changes:
* Reduce the capital-gains tax to zero. Long-term investment, which this would stimulate, is even more important than the recession, or at least so important we shouldn’t ignore it.
* Place a moratorium on regulatory policies and (give) markets the maximum freedom possible.
* Significantly liberalize the number of immigrants allowed into this country. A major problem in the 1990s is that the demographic forces today--the biggest being the “baby bust”--mean labor growth will be low and so too will economic growth. People are not thinking about that now, because we’re in the trough of a recession, but we should be thinking about offsetting that negative trend now.
LUCIA DE GARCIA: PRES., ELAN INTERNATIONAL TRADE CONSULTANTS
‘Make Education Top Priority’
Republican, 47, Irvine.
How can we compete in the global economy when here at home we don’t have enough education programs? How can we talk to other countries or compete globally if our kids are graduating without reading, writing and math skills? What are we doing about education? Education should be a top priority. All we have to do is visit the high schools located in our inner cities and we will see kids that are not motivated. Motivate them to become better human beings. Hispanics are under-performing at all education levels. We Hispanics are an important part of this country, of the future global market. We need to implement major educational changes at home. Once we master our own language we can expand and move on into the global marketplace.
J. B. CROWELL: PRESIDENT, ELDORADO BANK
‘Cut Capital Gains Tax to 0%’
Republican, 58, North Tustin.
We need to reduce the capital gains tax to 0%, like Japan, which is at 0%, and Germany at 1%. We are not pioneering that in international taxation. The 1986 and 1990 tax acts are contributors to our current dismal environment and they need to be repealed. Congress and the U.S. government have too much of an anti-business attitude and that needs to be reversed. Congress seems to just shift the tax burden from year to year from one group to another. Changes in tax laws every year make it very difficult for business to plan. New accounting rules come out two or three times a year, which makes it difficult for businesses to plan and difficult for investors to know what companies are doing.
ROGER W. JOHNSON: CHAIRMAN, WESTERN DIGITAL
‘A World-Competitive Producer’
Republican, 57, Laguna Beach.
We need to put the United States on track as a world-competitive producer. We can do that by:
* Stimulating long-term investment with an investment tax credit for new or improved equipment and plants.
* Reducing the capital-gains tax on a graduated basis that promotes long-term investment and savings only--and doesn’t promote short-term churning of assets or passive investment.
* Increasing the pressure on Japan and others who will not open their markets. But use U.S. companies and products where there is no question of quality or unique market needs.
In the short term, ask the American people to review their purchases of the past year and make a change in spending of at least $100 worth per family member from foreign to U.S. products. Test drive at least two U.S. cars when buying a car.
Social issues are inextricably intertwined with the economic and competitiveness issues and cannot be solved in the long term unless major improvements are also made in the parallel issues of national infrastructure.
Tell the Congress and the people that it is time to work together for the common good. The era of me-first is over. The era of teamwork and for-the-good-of-the-country is back. This change in attitudes is a prerequisite to solve not only economic issues but to attack, in parallel, . . . health care, education, drugs and crime.
