Posted by
1deciple on Tuesday, February 24, 2009 12:00:00 AM
Over a month ago, I put together a 'stimulus plan' (since that's all the politicos were talking about) that seemed to make good sense. It involved both tax cuts and spending, designed to create an immediate, positive effect on our sick economy. Actually, I had put quite a bit of thought into my plan, because I really wanted to make a contribution to the process...you know..to help my country and all. Well, when I finished it, I emailed it to my Congressmen and Senators, and even to the White House. Can you imagine? I actually got a response, (emphasis on "A", meaning one, singular), and it was a form letter from my Congressman which I had received on three other occasions when I had written to him on other issues, not related to the economy. I'm sure the others, including Obama were much too busy passing their superior 'spendulus' bill to bother ackwnowledging my humble suggestions.
As it turns out, a couple of my suggestions wound up in their bill, and they are still considering a couple of others, perhaps to add later.
I'm sharing my Stimulus Plan with you below:
Two Part Plan for Economic Recovery in America
The common sense ideas of one devoted U.S. Citizen/Taxpayer
A. Part One-Adjustments to the Tax Code
Rationale: Oppressive taxation and the complexity of our present tax code have
virtually strangled productivity, and penalized hard work and ingenuity.
Therefore, the first step in stimulating our Nation’s economy is significant
tax relief, to put their own money back into the hands of taxpayers.
1. Immediately abolish the Capital Gains tax.
This hateful, confiscatory tax has long been the most counterproductive and repressive disincentive to the creation of new jobs in America. If business owners and investors were not penalized for their sound business practices, hard work and sacrifice by this governmental extortion of their success, they would be much more incentafied to grow their businesses, hire more people and increase bottom lines, part of which would go into higher earnings and more benefits for their employees.
2. Abolish the Death Tax, Once and for all. It has always been an unfair form or double taxation, and hated by everyone except the politicians who instituted it. The very idea of forcing heirs to pay, again, ‘income taxes’ on the wealth and property upon which taxes has already been paid by their benefactor is simply unjust, and seen as another form of legalized governmental extortion. Were this tax not a factor, much of the wealth inherited by heirs would be invested into new businesses that would create new jobs.
3. Eliminate the Alternative Minimum Tax. This would almost immediately create additional investment activity, causing increased confidence in the economy.
4. Cut the Corporate Tax Rate to be competitive with foreign countries, to which many U.S. Companies have fled with their workforces. This would bring many of those companies back to American cities along with their work force, and prevent others from leaving to escape the high taxes imposed by the U.S. Tax Code. I suggest an immediate 15% reduction, as a good starting point.
5. Cut Personal Income Tax Rates, effective January 1, 2009, by 25%, across the board, and suspend the payroll deduction for the first quarter of 2009 starting immediately (March 1). Getting rid of payroll deduction for income tax for a period of time would be the equivalent of raising wages at a time when workers need it most. Wage earners would have more to spend, invest, save and give to charity, stimulating the economy immediately.
6. Repeal all sections of the tax code that create the “Marriage Penalty”, so called.
Like any other reduction of taxes, this would increase buying power and thus, stimulate the economy.
7. Allow all Companies that employ two or more employees an immediate credit of $10,000 for each new hire or re-hire they maintain on their payroll for at least three years. (Credit to be taken at $3333 each calendar year for three years. Employees would have to be paid at least at Federal Minimum Wage level to qualify employer for this credit.) This would encourage/incentify massive and immediate job creation
8. Allow additional $1200 annual tax credit to employers who provide at least 50% of employee’s healthcare.
Proof would have to be provided that the entire credit was spent on the employee’s healthcare premiums. Again, this would be another
incentive for creation/restoration of jobs.
9. Allow 100% tax credit for all sales taxes and first time licensing costs of any new car or truck purchase, and extend this benefit to all sectors, private, company, and even to Corporate Fleets. This would be an immediate boost to the ailing auto industry, and would put thousands of people back to work immediately!
10. Initiate a six month moratorium on the Federal Gasoline/Highway tax now being collected at the gas pump! This reduction would translate to relief for all those businesses, both large and small, who depend on gasoline for transportation of goods and services, lowering their cost of doing business, and enable rehiring of many laid off employees. Benefit to individuals and families would encourage a return to normal driving habits.
B. Part Two-Targeted Spending Directed at Job Creation
as well as reducing foreclosure rates and encouraging home-buying.
1. Provide $7500 Coupons to qualified buyers for purchase of hybrid automobiles (Up to two per family) This would stimulate development/production of more fuel efficient vehicles while creating/securing jobs in alternative energy and auto industries.
2. Provide $15,000 voucher from FHA toward purchase of a new (different) home for qualified buyers. (Qulified according to long established and accepted standards of sound banking/lending policies) Immediate stimulus effect resulting from more people buying homes. Will put Thousands back to work almost immediately.
3. Provide Government Backing for 25 year fixed-rate loans at 4% to qualified Buyers, and require only 5% out of pocket down from buyer, with other 5% of 10% down payment requirement coming from Federal Grant, to be added to end of mortgage.
4. Provide Government Guaranteed construction loans to Builders for new or re-hab construction with rates of 1% above prime. Loans could not exceed appraised value of property as improved. This would create a new wave of home building and remodeling that would create/restore many construction jobs.
5. Provide housing assistance up to $200 monthly for up to three years for families with recently lost incomes, who are in danger of foreclosure. This would Allow endangered families to remain in their homes and forestall foreclosure until jobs/incomes could become stabilized/refinancing could reduce the financial stress of burdensome payments.
6. Provide refinance loans @ 4% for those struggling with ARM mortgages that have placed them in jeopardy of foreclosure but who could make their payments when the interest rate is adjusted to the lower rate.
7. Provide 70/30 matching Federal construction funds for the several States to construct/rehab public roadways/bridges/schools and other publicly owned/maintained infrastructure. Condition for qualifying projects: must be shovel-ready within six months, creating jobs almost immediately. This piece of the stimulus package should be no more than 25% of the total.
8. Provide Federal funding to States to add $100 monthly to Unemployment checks. The additional money is badly needed by families and individuals who’ve lost their jobs and now depend on Unemployment benefits to feed their families and pay their bills, while they seek new employment. This would increase spending for goods and services, providing immediate stimulus for the economy.
I really think these are sound and practical ideas that would work, but for the most part, Congress doesn't seem to be thinking along these lines. Let me know what you think.
1deciple