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Ok, so the main problem right now is that people are losing money, so they aren't spending money. They aren't spending money so businesses are losing more and more money and firing people. So, why doesn't the government get rid of income tax? I mean just for 6 months maybe. If you think about it, everyone who works will get what they really work for and they will be alot happier. They will have alot more money and want to go spend the money! ta da problem solved right?
Once again... The problem right now is that CREDIT is not available. The big banks and investment firms were deeply invested in the derivatives market. When trading credit default swaps (which are alleged insurance policies) they did NOT have to put up any collateral...just their good name (ha, ha). The market grew to way more liabilities than there is money on the planet. Then when the housing bubble burst, it pulled one card away from the bottom of this "house of cards". Now the big banks have lost more money (way more) than they ever had. Bush tried to bail them out to free up credit...but they have debts that they will never be able to pay. Therefore they paid themselves bonuses and squirreled it away in the Camens and will soon disappear. Unavailable credit is the problem. Businesses take out short term loans for expansion to make payroll, increase inventory etc. But the big banks are dead so they can't lend to smaller banks who can't lend to business and investors. Okay now...here is the tricky part, so pay attention. The recovery plan is two-fold. First...the part that everyone biches about is the stimulus which is introduces money at the bottom as job creation and spending in the lower realm of the economy....AND...tax-cuts for the middle realm of the economy. Secondly the top must be fixed before money can flow down instead of into the black-hole of debt they have created. The choices are...another bank bail-out with strict oversight Westwood Lakes nationalizing the banks so that we know that the money will go toward freeing up credit...AND...leave the bankers holding the bag for all of the debt they have created. Obama says he wants to keep the banks in the private realm....but the smart money says that the government takes them over.
Do you realize that income tax is revenue.....taxes lost = bigger deficit. I'm not sure what angle you are coming from, but Republicans have a tendency to pretend that TAX CUTS are different from spending in some way. They aren't. If we cut taxes entirely, then we'd rack up a deficit of MANY TRILLIONS of dollars....with very little to show from it. The reality is that we can increase the taxes on the high end of incomes (millionaires or better) and it won't hurt the economy at all...because those people DO NOT SPEND MONEY. They don't live paycheck to paycheck...most of their money goes right back into savings....unspent....unstimulating the economy. The only tax cuts that STIMULATE the economy is money that is SPENT. That means the poor....the working people....the middle class. Those are the people that SHOULD NOT pay taxes. There are points where a SUPPLY SIDE (tax cut for the rich) helps....it's when the DEMAND SIDE has a ton of cash just sitting there. When the middle class is making a lot of money. This worked for Reagan in the 1980's.....because it gave the rich the money to invest in businesses that the DEMAND SIDE (the middle class) could buy from. That SUPPLY SIDE economics thing was taken way too far, and is the reason our economy has been BOOM-BASED ever since....internet....real estate, etc. There is TOO MUCH cash on top, while our middle class has dwindled.
Yes I think that is the correct solution. The govt is borrowing money from the Fed at will-why should the citizens continue to pay tax when they can just print more. I know I would be spending more on things I want if I didn't have to send it in to the Fed.
I like your idea a lot, And I believe your on track, They should have tax free zones for start up businesses to get them on their feet at least for six months, And suspend the income tax, But unfortunately as long as we have this communist Obama in office who wants to tax those who are productive, I don't think you're going to see that happen, I think Mr. Wong above is right, Obama needs to be impeached or step down . God bless.
They actually had an either 6 or 12 month tax holiday in the House, it sure as hell didn't last long. Oh yea and the Republicans offered that one, Dem's demolished it.
It sounds like a better idea than Obama's tax and spend like a madman plan.
What do you call 100 congressman at the bottom of the ocean? A good start.Same answer to your question.
Yes that would solve the problem. The Republicans actually had that exact same idea, but the Democrats turned it down. :(
I think if the government legalized weed and taxed it they would make billions of dollars and no longer would we be in a recession... the only problem with this is that since weed would be off the streets you would probably start to see more harder drugs being used.
That would mainly benefit the rich who would take the money and invest it in factories in China. Bad idea. I