Friday, July 10, 2009

It is Time for Real Ideas for Real Problems

At the Group of Eight summit President Obama, referring to economic recovery, said that a “full recovery is still a ways off”. Could it be that the economic recovery is so slow in emerging because of the reckless economic policies of the current administration along with the current congress. The President and Congress have yet to offer any legislation that will have any meaningful simulative effect on the economy. The only stimulus the President seems to be interested in is increased government spending which is not stimulus.

We must learn from the example of Franklin Roosevelt. The left says that FDR did not go far enough with his huge government spending plans during the depression. A reasonable analysis of those years reveals that he in fact went too far and it delayed growth and prolonged the depression. In fact, had it not been for the economic boom created by World War II, the great depression might have lingered for another fifteen or twenty years.

Government spending does not promote an environment for investment and productivity. The addition of massive amounts of debt robs the economy of the growth created by personal investment.

There are proven methods that will cause the economy to begin a period of growth.

1. Cut the capital gains rate to 10% for everyone. This will spur capital investment by businesses and personal investment giving banks a supply of cash that will not require the printing of money by the Federal Reserve.
2. Offer tax immunity allowing every American business that has money sheltered in off shore accounts to bring that money back to America tax free if it is used to spur investment and create jobs.
3. Replace the federal income tax with a national sales tax, preferably the fair tax. If the math is explained and people can look past democratic fear mongering, the fair tax is a fantastic idea. Imagine this; you want to buy a recliner that cost $300.00. Under our current tax system $100.00 dollars of that recliner is embedded taxes. If the tax code is replaced the cost of that recliner becomes $200.00. If you add a 25% sales tax, the cost becomes $250.00. Under the fair tax the cost of the recliner goes down $50.00 and you are allowed to keep your entire pay check. The resulting stimulus to the economy would be 1,000% more effective than the current
stimulus debacle.
4. Cut government spending.
5. Cut the corporate tax rate to 10%.

These are real solutions that will work for America and create business and jobs.

The Democratic mantra on these plans sounds like this, corporate welfare, corporate giveaway, and the like. Let me explain to the democrats what corporations are responsible for.

1. Creating jobs.
2. Creating Wealth
3. Innovation.
4. Investment.

Obama and his followers talk of corporations as if they were the coming anti-christ. In fact here is what corporations are. They are companies that produce goods and services and HIRE PEOPLE. In other words they are where we work. When liberals attack corporations they attack our jobs and people are put out of work. As liberals attack the big oil companies with their left wing agenda, which one of the thousands of jobs that will be lost does anyone think will not affect the unemployment rates. The people who work at the "big corporations" are our neighbors, our friends, our mothers,our fathers, and more than likely ourselves. The next time democrats and the President attack "big corporations" recite the attack over and over in your head, but replace the word corporation with your company name. Who he just attacked was you and the job that he is targeting could be yours. Now get mad and fight back.

It is time to for the voice of common sense to be heard America.

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