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Benjamin Franklin The Housing Crisis Solution No more bailouts we know how the automakers and Unions have been contributing to our Senators and Congressmen election funds. What, do you really think we are that ill-informed? The auto industry is a global market and the best thing for the big three to do is to reorganize under chapter 11 and then merge into one company. As for the bailout for the banks and the so called credit crunch a simple lesson for Congress. When people save and cash is in the bank’s the banks pay interest to the savers. The banks then lend this money out at higher interest. When the government borrows money to give to the banks to lend out then the government increases the debt. If the government cannot borrow the money for the bailout then the Federal Reserve will need to print it and increase the monetary fund. The extra money causes the dollar to devalue this leads to inflation, higher interest rates and higher prices. So what to do? Well we need to get money back into the system. Best way to get money back into the system? Lower taxes! All Taxes! Lower capital Gains to 5%, lower corporate rates to 0% and go to a fair tax structure for income taxes (a national retail tax). Every 4 years we the people could vote on if we need to increase or decrease the retail tax based on what kind of job congress has done for us. By lowering taxes money would pour in from offshore accounts and investors the flat tax will ensure even illegal immigrants and drug dealers would pay taxes. In short stop wasting our taxes for your pet lobbyists, projects or whatever. We taxpayers pay taxes in the assumption that the government would use it for what it was designated for and definitely not for bailouts for problems the government caused. Milton Friedman on Economics. Maybe Congress needs some Economic Courses
He that is of the opinion money will do everything may well be suspected of doing everything for money.
US author, diplomat, inventor, physicist, politician, & printer (1706 - 1790)
Congress wants to loan money to the banks so that they can lend it out and make money. In order to ensure the money is used to help the people out that actually want to stay in thier homes we need to do the following:
Double the home interest deduction for this year and then ramp it down by 20% for the next 5 years.
Fo instance if a homeowner paid 10,000 in interest then the deduction would be 20,000 this year, 18000 , 16000, 14000, 12000 then 10000 in the preceding years. This will stop foreclosures on owners and investors that want to keep their property and create a new boom market fo real estate. This would be more constitutional then having the courts redo the mortgage contracts by trying to lower the principle.
Do the math this should be a no brainer and would actually bring more revenue into the Federal and State coffers then bailing out the banks. If Obama really wants to grow the economy from the bottom up this will be a start.
Other Items
Fair Tax (Federal retail tax)
Term Limits for Congress
It is time for the Government to get out of meddling with the economy!! No more Government Sponsored Enterprises (GSE’s) like Fannie Mae and Freddie Mac. No more misuse of taxpayer money if we pay a road tax then use it to fix the roads, if there is a tobacco tax to use for health care then use it for health care. Who gave the congress the right to borrow from the Social Security fund in the first place?
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