Skip O'Neill – Liberty for All

Ron Paul for A New Direction

Economic Bailout

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It’s not as if I actually endorsed the bailout program, but as of today I am withdrawing my support for any Government involvement in trying to solve the Credit Crisis and the Global Recession.  The TARP, (original $700B) as originally conceived, was an auction mechanism, modeled after the highly successful RTC, whereby banks could sell illiquid asset backed securities to the Government which would turn around and sell them to the private market.  It wasn’t a “bailout” as the press decried, since it did nothing to ensure the survivability of the bank.  Now, we have in its place a boondoggle of a bailout. 

Here is a better plan, that will cost the government less than half of the original plan ($700B) and it will help to jumpstart the economy for growth.  The Obama people should take note since they are already planning for his reelection in 2012:

  • Eliminate the punitive Alternative Minimum Tax (AMT) $30B
  • Cut the Corporate Tax Rate in half (we have the 2nd highest rate in the Developed World) $170B
  • Make permanent the Capital Gain Tax rates $150B

Those changes would do more to create lasting economic strength than any of the Government schemes that have been discussed to date, based on throwing good money after bad and failed Keynesian ideas.

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Written by opinionoregon

December 2, 2008 at 11:13 pm

7 Responses

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  1. JFK proved that by lowering taxes, created economic growth. With the losses in the stock market this year, there is not going to be many people who actually have a capital gain. If there is a gain, then it is subject to the 20% tax. In fact, we can only deduct $3,000 of our losses and have to carry them forward to subsequent years.

    Sal Slope'

    December 2, 2008 at 11:18 pm

  2. I think that one of the factors that will contribute to repair our economy is to give a tax exemption up to 5-7K on real state tax on the first property. This will benefit those people who cannot afford a house due to this tax burden, but also the retired people that after leaving their guts paying taxes all there life, they have to keep on working to comply with real state tax. How the tax dollar void may be filled? Increase taxes on cigarettes, alcohol and gambling. By this, a large population sector will be able to own a house, energizing this trillion dollars industry. In my case, I own a house and I have been thinking to make additions, however when I sit down and calculate the tax burden, the numbers scares the bejesus out of me. Real state tax breaks are the key to restart the economy engine.

    Frank

    December 3, 2008 at 1:16 am

  3. The tax system as it stands penalizes the productive members and removes wealth that can be used to create jobs.

    opinionoregon

    December 3, 2008 at 1:20 am

  4. I have heard that the bailout of Chrysler in the 80’s was structured as a loan and was paid back in full. The culture has changed in Washington and theire is little accountability today. Bailout is a handout. I say let the automakers file chapter 11 and reorganize. At that time, we talk about giving them a hand up.

    Billy Helprin

    December 3, 2008 at 1:24 am

  5. Don’t forget that Ronald Reagan also lowered taxes and we enjoyed the longest running economic boom in history. I do recall that Bush #1 raised our taxes and put us into a recession. That ultimately cost him his re-election.

    Marcie Sabula

    December 3, 2008 at 9:38 pm

  6. It is downright un-American of us Americans to not hold these organizations accountable for their business practices. I can’t wait until someone or a group of someones goes to jail for the problems that have occured. Barney Frank and Chris Dodd can be cellmates. Fun-time for Mr. Dodd.

    Michael M

    December 5, 2008 at 7:37 pm

  7. I think you need to look at Congressman Louie Gohmert’s plan for a bailout and the possibilities that could happen.

    Click on my name and you can read more about it on my blog.

    I also think, if we give the bailout money to the people in the from aof a tax holiday with a tax credit to those who buy American automobiles, we won’t need a huge bailout package.

    Incentives work better than giving billion to those who couldn’t manage the billions they had in the first place.

    Tom Peters

    December 6, 2008 at 4:21 pm


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