What a Federal Stimulus Package Should Include
Posted: Monday, February 02, 2009
by Terry Mitchell
http://commenterry.blogs.com
President Barack Obama is proposing to spend nearly one trillion taxpayer dollars on a federal stimulus package to hopefully revive the ailing U.S. economy. Such a bill has already been passed by the House of Representatives and is now headed to the Senate, where changes to it are likely. Therefore, what form the final version of this bill will take is unknown at this time.
1) An immediate, across-the-board, five percent cut in marginal income tax rates for individuals. All taxpayers should start seeing the extra money in their paychecks as soon as the stimulus bill becomes law.
2) Suspension of all federal taxes on small businesses, continuing through the end of 2011.
3) A tax reduction for corporations that do not send jobs overseas and a tax increase for those who do.
4) Suspension of employers' share of payroll taxes for any U.S. employees hired in 2009. This would continue through the end of 2010 and would not apply to the rehire or replacement of workers laid off after the passage of this bill. This benefit would end early for any employer laying off more than 5% of its work force after the passage of this bill and before the end of 2010.
5) An incentive for banks to loan money to individuals and businesses that have acceptable credit ratings. As a part if this incentive, a Federal Loan Insurance Corporation (FLIC) – modeled after the FDIC for depositors – should be created to insure loans made to the most creditworthy.
6) Protection for struggling homeowners who bought homes within their means and are honestly trying to pay their mortgages.
7) A temporary suspension in individual limits in federal unemployment insurance benefits.
8) A one-time, $2000 tax deduction for anyone purchasing a new car from a U.S. dealer in 2009.
9) Tax credits in 2009, 2010, and 2011 for banks and other financial institutions that cap their interest rates at 10% for all of their credit card customers who pay on time.
10) A ten-percent tax deduction for all cash purchases of big ticket items (things that cost $500 or more, other than cars or houses) in 2009, limited to a total amount of $2000 in deductions. For example, let's say someone purchases at big screen TV for $1500 and a refrigerator for $1200. That would mean deductions of $150 and $120 respectively, for a total of $270. All qualifying purchases would have to be made in the U.S.
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Top-level comments on this article: (2 total)Terry a very good article, yet I can't help focusing that this is for those that have. I think a trip to a local school might, I say might just wake up many Americans to how far reaching this blight is. Reality is no hope for people who need it most. I have literally seen people thrown out onto the street when they did everything they could to work it out with their friendly banker. The home short sold, the bank writes it off and gets the bling money while they are ruined. They even have to pay taxes on that write off. Sin, shame not strong enough. Hoping in politicians and people. The answers for all I have written to many months ago but they just won't do it. They have literally cast aside millions never to recover, fact, regardless of what they profess. If you have you will get, period. Cynic sure, why not, it is the age we live in. This was not directed at you just the apathy I see all about. Best wishes.Robert, thanks for your comments and input. Always insightful and appreciated.
Terry, I find your proposal even-handed and balanced between businesses and individuals, though I'm not sure of its impact on the tax dollars going to the government to run efficiently without negatively impacting essential services. And I really like the idea of an FLIC to insure good loans from lenders. Of course, no typical politician would adopt all ten of your proposals for the stimulus package, but it would be encouraging if just half of these made it into the bill. Hopefully, someone from the powers that be will stumble upon your piece, or someone of influence in Congress will share your views even without reading your article. ~mogama~Mogama, thanks your kind words. Yeah, I can only hope that some of this stuff will actually be included.
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