Written By: Ken Hulsey
Now that the Senate has voted down the $700 billion bail-out plan to help save the American economy, I have better idea how that money could be used to stimulate spending and put everything back on coarse. Take that money and give it to the American consumer. You heard that right! give it to the people instead of giving it to big business! According to some numbers I've heard being tossed about, that would end up being something around $300 thousand per taxpayer. I know that if I got that kind of money, I would use it to buy a house and pay off my dept. If everyone did this, then the housing market would boom again, and businesses would see a sharp increase in sales and profits......problem solved right!
Despite what the "fat-cats" in Washington think, the only real way to stimulate an economy is to get people spending again, not by lining the pockets of "big-business"
I know this is an over-simplified solution to a complex problem, but I think it would work. I doubt anyone in government would have the smarts or balls to put such a plan into action.
***Added Bonus****
Americans who in jeopardy of loosing their homes would now be able to keep them and pay them off!
****Added Bonus****
The plan would allow the Federal Government, plus the State and Local Government, to get an almost immediate payback on some of the funds through sales and property taxes. This tax money is crucial to the well-being of states like California and others who are working under a deficit and are planning to take more tax money out of your pocket to offset these negative balances. (A plan that will hinder the economy even more...) The Federal Government could even be allowed to take a smaller than standard amount out for income taxes. There should be a cap on this however to keep the money in the hands of the taxpayer, or else the plan wouldn't work.
As it stands right now, the government is gambling that they will be able to get their money back from the bail-out from the very same type of investments that caused most lending institutions to go belly-up.
Okay that $300,000 amount that I kept hearing about on talk radio doesn't seem to add up? According to my figures it comes out to a little over $5,000 per taxpayer. I got that figure from dividing 700 billion by 138 million taxpayers (got that number from the net).
ReplyDeleteEven at that figure it would be more than the $152 billion dished out for the "The Economic Stimulus Act of 2008" In that one everyone got roughly $600 a person.
$5000 is better than $600
I still contend that if the gov can keep dishing out these billions than a huge "American Public Bail-out" is possible, if not crucial to keeping the economy afloat!
Of course it would take over $13 Trillion to give each tax payer $100,000. Now I'm sure that there is a way to get that number under control by limiting it to $100,000 per couple or household.
That would do the trick.
It would take a lot of number crunching, but i think at that rate it could be done.
One only has to take into consideration the benefits listed above to see how it could help solve a lot of this countries economic wowes.
I think the $300,000 for each taxpayer refers to splitting it amongst the folks in the top 1.6% income level. But they have to have paid their taxes
ReplyDeleteThat may very well be where that number comes from, but you see thats part of the problem. The money shouldn't go to the top 1.6% of the taxpayers, it should go to the middle and lower class. The upper class already has money to spend. The other classes are scared and holding on to their money, instead of spending it. That is why the economy is slowing. The nation needs those people spending again.
ReplyDeleteTo break it down:
More spending = more products and services needed = more jobs = more tax dollars for Uncle Sam.
You have to look back to WW2 when the US economy bounced back from "The Great Depression". The war provided more jobs for Americans, causing more money to be pumped into the economy.
I honestly believe that the increased tax dollars from my plan will pay for the "stimulous" over time. That way there won't be a need to raise present taxes to pay for it.
Also if you give the lower class a good lump some of money, it would probably decrease the need for several social services, saving the country more money that could, in turn pay for the amount needed.