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What Would You Tell Obama?

2009-02-05 by

Brent Clanton on CNN650

When filling in for an absent guest with Brent Clanton this week, he asked me an interesting question. “What if President Obama came to you right now and asked your advice on how to re-start the economy? What would you tell him?”

What would YOU tell him?

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  1. Andy Shaffer Says:

    Nothing. It will take a while, but the economy will eventually hear itself.

  2. JoAnn Reagan Says:

    Here's an idea from a young friend of mine. Instead of billions to banks, how about $500 thousand to each person? He asks, "Wouldn't that jump start everything?" Well, would it?

  3. Ed Gandia Says:

    Simple—"Institute the FairTax immediately, Mr. President. I'm convinced that this alone would address 95% of our troubles.

    "As you know, this environment calls for bold moves in the right direction. And if you're unfamiliar with the FairTax, Mr. President, Neal Boortz books on the subject make a very compelling, fair (and truly bipartisan) case for the FairTax as a solution to the current troubles."

  4. Shaun Says:

    I would offer tax incentives for investments in small local businesses. Instead of investing 401k and IRA with wall street stiffs I would encourage people to invests locally and offer tax breaks on those incentives.

  5. Roger B. Adams Says:

    I would say this:
    There are two methods wherein government affects the economy; monetary and fiscal policy. Monetary policy has already been extended to its limit through an incredible increase in the money supply and the reduction of interest rates to near 0.
    That leaves the fiscal component to do the heavy lifting in solving the current crisis. Fiscal policy deals with tax rates and government spending. Congress has obviously opted for the spending part. I believe this to be in error to the degree of 1.4 trillion dollars.

    Recent history tells us that it was consumer spending on which the economic well being of the US chiefly depended. Thus, to resurrect that spending and consumption (or, as they say, to increase the velocity of money)one must:
    a.Address the problem in the housing market. This can be done in a few ways:
    1.Provide 4% loans to homebuyers from Freddy and Fanny. This would have to be for principle residence, 10% down, 25 years to pay, with the borrower employed.
    This loan opportunity to expire two years after inactment.
    2. Create a repayable tax credit of 10,000 (which could be carried back for up to two years)for homebuyers with less than 250,000 AGI and for houses costing no more than 500,000.

    I believe that would soak up much of the excess housing inventory and get those construction trades working again. The time limit would encourage decision making.

    b. Secondly, increase disposable income within the consumer and business community. This could be accomplished in two ways.
    1. Drop the corporate tax rate to between 12-15%. Corporate contributions to total tax revenue is around 10%. A decrease from 35% to these new levels would vastly accelerate inbound investment into the US. It would stimulate investment in plant infrastructure, equipment, R&D, and most of all risk taking.

    2. Drop the individual marginal rates from 10% to 5% (a 50% decrease), the 15% bracket to 10%(a 33% drop), and the 25% bracket to 20% (a 20% drop).

    Since the 10 and 15% brackets produce only a tiny portion of tax revenue this is no great sacrifice to the treasury. Nevertheless it provides a substantial and continuous increase of spendable income in the hands of people who really consume. A one shot stimulus has proven itself to be ineffective.

    With an general and continuous increase in disposable income from a decrease in tax and a decrease in mortgage obligations within the general population businesses would be encouraged to ramp up the production of goods and services, the retail sector would vastly improve, and banks would be competing for business again.

    That's my humble point of view.

  6. Roger B. Adams Says:

    One more thing. The idae of decreasing "payroll taxes" is insane.

    Let us all remember that FICA stands for "Federal Insurance Contributions Act". This not a tax but a contribution to government sponsored retirement and health insurance plans. The contributor will, in most cases, get his investment back with interest. It is not a contribution to general government spending.

    SS and Medicare are already on shaky ground financially speaking. To start toying with this revenue is exceptionally dangerous.

  7. Alyce Painter Says:

    First of all, bring all of our jobs back that went overseas. That will give all the unemployed in this country a chance to get a job. Send all the work visa employees back to their own country to again allow Americans to work. Pay us what we are worth instead of lining the CEO's pocket with gold. Second, stop the ultra rich from sending their money overseas to avoid paying taxes, our country needs what you owe more than you do. This is the American way. America provided you with the opportunity to create your dream and make a bundle, now do your part and help the economy. Third, Americans will buy American cars when they have the same resale value of the imports. My car is over 13 years old and still worth $4,000.00-tell me what American car would be worth that much when it is that old? Identity theft is at an all time high- is it any wonder when all of our information is overseas with the customer service jobs that are over there with all of our sensitive information?

  8. Roger B. Adams Says:

    With all respect to Ms. Painter and her protectionist orientation perhaps it would be worthwhile to learn a little from history; see
    The Economist also addressed thisidea in last weeks issue:

  9. Robert Torres Says:

    We should no longer depend on imported energy, we can create our own and I'm not saying drilling for oil. Alternate energy (solar, wind and even nuclear)is something we've always had and always managed to bypass. Back in the 70's, for those who remember, we had the opportunity to go that route, but then politics gets in the way and guess what politics got us where we're at right now. Did you know that by activating the three nuclear reactors in Lake Ana in Virginia would create enough energy for all of the eastern US states? Then again this is not the only way out, we have solar and wind, listen to Mr. T. Boone Pickens, he's got what you may call the perfect plan for alternate energy. Pump funds into this and the results would be: 1) create jobs, 2)it's a USA product, 3)reduce our dependency of foreign oil, money stays here in USA instead of billions going to middle-east where we are not wanted but our money is.

  10. Cletus Kremmel Says:

    Instead of handing money to the auto industry, Give tax credits to purchasers of "american made" lol vehicles. For example the first 1 million cars sold with epa mileage ratings of > 30mpg will get a $6000 tax credit. >25mpg buyers will get a $4000 tax credit. >20mpg will get a $3000 tax credit. The next million cars sold will get a tax credit at 75% of original incentive….the next million sold at 50% of original incentive. Keeps the money where it belongs,promotes purchasing fuel efficient vehicles, certainly would boost sales which is what i understand the whole problem to be…..

  11. Thomas Avery Blair, EA Says:

    I think I would respond: "Consider a three year moratorium on the federal income tax on both businesses and individuals and install a 23% national sales tax on the purchase of all new items purchased by 'end user-consumers.' Review the results and then simply take appropriate 'corrective action' after the facts and results are weighed."

    At least food for thought, is it not?

    Respectfully submitted,

    Thomas Avery Blair, EA

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