Wednesday, February 4, 2009

What would stimulate this economy?

I have been wondering what the big deal is about trying to decide what will make this economy get back on track. What has caused the economy to stall? Lack of spending seems to be the answer. So if businesses were able to sell and the market was allowed to begin moving again we should be able to get back on track.

Let's spend as much as possible on infrastructure projects that are already designed and ready to begin work; build the energy grid; purchase heavy equipment needed for the military and infrastructure projects, build and repair schools and public buildings; build tourist centers in national and state parks, repair and rebuild the Gulf Coast damaged by hurricanes, develop electronic medical records, research on energy efficiency and alternate energy sources. Build public transportation systems, rebuild sewer and water systems that are in critical need.

Tax stimulus: No income taxes or alternate taxes on individuals incomes less than $50,000 annually and couples less than $75,000 annually; tax credits for equipment purchases to be written off first year at 150% of cost; tax credits of 175% for employee insurance expenses; lower corporate income taxes to 28%; tax credit of 50% for purchase of a vehicle during 2008.
130% tax credit for charitable donations during 2008.

Accelerate the depreciation schedule for real estate (commercial) to 12 years; Provide 3% interest on loans on real estate, family housing up to 4 units, on amounts up to $400,000 with 30 year amortization;

Purchase up to $350B to buy mortgages and provide the ability to rework the terms of those loans. Holders of loans that rework home loans at least two months in arrears will be provided a tax credit of one-third of the principal amount of the loan.

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