Even the “Average American” that pays more attention to American Idol than American News knows our nation is broke and is up against the debt ceiling limit.
So The Powers That Be, namely the Obama Administration, thinks it is wise to implement a new “home owner in distress” program to help kick start the economy.
“The US Department of Housing and Urban Development and the nonprofit NeighborWorks America said the program will provide hundreds of local borrowers with interest-free loans of up to $50,000 over a two-year period. In some cases, the money will not have to be paid back.”
…
Interested homeowners must submit a pre-application, which could go into a lottery if there is excessive demand, officials said. To qualify, homeowners must have suffered a drop in income of at least 15 percent due to job loss, wage cuts or a health emergency.
So lets get this right, our government is just going to hand out $50,000 to distressed home owners without the expectation of it getting repaid, much less having a zero percent interest rate? Who pays for this? We do.
I personally chose not to own a house- it was my choice. Yet, because some people made a bad choice and are underwater on their homes, it is my responsibility- as a tax payer without a home- to bail those same individuals out? This is why individual freedoms and values are so important. If we even half way listened to our founding fathers- we would not be in this position. We gave King George the middle finger for stuff like this in the middle 1700′s.
I guess this lady was right when she said she wouldn’t have to worry about putting gas in her car or paying her mortgage any more.
Here is what I would do if I were President of the United States for distressed unemployed/underemployed homeowners. GET OUT OF THE WAY OF AMERICAN BUSINESS and inspire job growth incentives.. Lower taxes, significantly, on any and all businesses who meet the following conditions:
1. Lower taxes by 50% on all companies who are bringing jobs back to America in a year over year basis. Both Income and Capital Gains Taxes (greater than 10% of work force per year) This counters outsourcing and hopefully brings back manufacturing.
2. Lower taxes by an additional 50% for those companies who add 15% to their employee workforce (with at least company average salary) and maintain that employment growth. Both Income and Capital Gains Taxes.
3. Lower taxes for every business by 30% across the board (if they didn’t meet the previous two conditions) Both income taxes and Capital Gains taxes.
Yes, I realize that companies could potentially be paying ZERO taxes while they meet these two conditions. And that’s fine. Creating jobs is our #1 priority. The top two conditions would remain in effect, at full strength, until the nation reaches full employment (4% unemployment). Once 4% is reached I would begin to reduce those incentives. This reduction would act as a “brake” to slow down the economy. Problem solved.
Both Ronald Regan AND JFK used this tactic to spur the economy. Lowering taxes actually INCREASED tax revenue during the times they utilized this tactic.
What say you?
I think your idea is nearly as horrible as what the democrats want to do. Boiled down the democrats are using tax money to unjustly discriminate against individual citizens. Your plan uses tax cuts to discriminate against corporations. I personally feel any government that uses its power to discriminate is an unjust one.
That is before even looking at the flaws of the plan.
As written ‘Lower taxes by 50% on all companies who are bringing jobs back to America in a year over year basis’ sounds like you mean to favor companies that have already out sourced. However, even if that is not what you intend that is what you will be doing effectively. You likely wanted to say any company that increases the number of people they employ in America and not jobs that are returned to America. That said who will be able to increase the number of people they employ in America by 10% the easiest? The companies that are already growing and likely don’t need the tax cut and the companies who have used out sourcing to cut costs. That is before looking at the numerous ways companies could game the plan by creating shell companies and other tricks that would be used like employing people at minimum wage just to keep the 10% stat to keep the tax cuts, possibility even while moving higher paying jobs over seas.
I do agree with lowering taxes. I would lower the tax rate to something like between 9 to 15 percent while removing all deductions for corporations. If I was in charge make it unconstitutional for businesses to receive any deductions for anything. The added bonus is other than for military contractors most of the lobbyist would lose their jobs over night. Sadly the very fact that this would hurt the lobbyists is a reason a fair system will never get implemented. Currently we have a very high tax rate for businesses that none of the large corporations pay. GE and Boeing enjoying that nice 0% rate for federal. Instead the job creators – small and medium businesses pay much closer to the the published rates.
Eliminate the discrimination, lower tax rates, and the jobs in will return to the US. I doubt the large companies would be the source of those jobs but they rarely are.