What is the best way to restore our economy?
Tax breaks to the people or businesses?
- Hnst abeLv 71 decade agoFavorite Answer
To restore all foreclosed loans back to the lower interest rates with certain qualifiers to eliminate corruptive loans and intentions. The FHA could and should run the program to restore these peoples credit and lives. Better to get them back on their feet than to increase the welfare rolls and tax burdens on the rest of us.
This would have been allot better to bail out people and their families instead of corrupt and greedy corporations with their high parachute severance packages for their CEO`s. AIG has been caught red handed having high priced functions at our expense after they received their bail out money. They have since canceled some of them because of the publicity, they have absolutely no SHAME!
- frugernityLv 61 decade ago
I believe the major lesson to be learned from the great depression was that an economy cannot thrive when there is too great an accumulation of wealth among too few people. The trend for the past thirty years has been that a smaller and smaller percentage of the population controls more and more of the wealth.
A healthy economy requires a solid middle class that can own homes, raise families, pay taxes that support schools and infrastructure, and have some discretionary income.
There's no use for companies to have goods and services to offer if no one can afford to buy them.
- Anonymous1 decade ago
The corporate tax rate causes the most problems from a tax compliance perspective. Seriously, tax code compliance occupies 4% of our workforce.
The corporate rate causes many products to be taxed twice or three times. If a product is made in the US, painted in mexico, and assembled in canada by a company based in japan and sold here, then how do you tax the profits?
Corporate headquarters are leaving the US at an astonishing rate because of the expense of the 40% rate but more so because of the legal complexity of our tax code, which weighs 50 lbs printed out.
If a corporation earns money after paying the corporate tax, its workers must still pay federal tax on their income. That is just plain old stupid. The worker is looking at a 70% tax before they get sales taxed on whatever they spend it on. We cant compete with china with a 75% disadvantage.
95% of the money in corporations goes to someone else than the ceo. I can legally get a corporation for a lemonade stand. Corporation is just a legal term for business.
Reducing personal tax rates is a great idea too. Nothing improves the economy like people having more money. Obama thinks he is smart enough to spend your money for you and make you richer. Do you agree?
Obama also believes taking money from people with bigger salaries and giving it to poor people will help the economy. That will make poor peoples lives better in the short term. It will also make people who earn more not work as hard and give the poor a reason to stay unemployed.
The reason that economic growth trumps fairness is because the economy grows in compound interest like an investment. The 3% you take in taxes now grows to be 100% in 40 years. Would you like 3% now, or for your kids to be twice as rich?
Taxing investment is the worst kind of tax because it stops people from saving. Obama wants to tax investments.
Moving to a flat consumption (sales)tax for corporate and individuals would free up several hundred billion dollars of tax compliance costs and still keep the options of saving and reinvestment in business tax free. It would unleash a huge economic expansion.
The person who thinks Obamas green energy will create jobs is incorrect. Alternative energy is usually five times as expensive. That would make us all poorer and hurt job growth.Source(s): Two degrees in econ/finance
- 1 decade ago
Lower corperate taxes...sorry to say. But that way the large corporations will move back into the U.S. and hire american workers. That will be a start to restoring our economy.
If you tax businesses too much then they won't be able to hire anyone. Everyone will be out of work. All the tax breaks for middle class won't do them any good if they don't have jobs.
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- 1 decade ago
The government needs to leave it alone and let the free market work it's magic. Tax breaks to both the taxpayers (not those who don't pay taxes, as Obama is including in his "95% 'tax cut (a.k.a. welfare)" and to businesses, as they provide jobs. Unnecessary spending needs to be cut, which means earmarks in federal legislation, and cutting programs that time and time again, have proven not to work. Americans also need to sacrifice. I'm sick and tired hearing some of my friends complain that they can't afford health insurance over their cell phone while they're sitting at the bar or a restaurant. Hard times mean you may have to ditch the cell phone, stop eating out & going out, and get your priorities straight. It seems like people now expect the government to come in and save them instead of sacrificing luxuries. This includes corporations and individuals alike. (FYI, a tax break is different b/c you're not being bailed out, you're getting to keep more of what is yours in the first place).
- 1 decade ago
Republicanized thats great Worm you truly are a moron. The real culprit behind our sagging economy with its constant bubble bursting here and there is the oh so wonderful Federal Reserve. The corrupt PRIVATE bank that has hijacked our countrys' currency since 1913. The fact that they print worthless paper backed by nothing but our good faith in them is a joke! They have siphoned off the United States wealth in the form of our gold and silver to Europe and Asia to pay their own bad debt and have had the balls to charge us interest for doing it! Oh yeah by the way the interest on the worthless paper they LOAN our government has to be paid back in actual currency! Which means you guessed it they want to be paid in gold for printing worthless paper, which is a problem because we are so in debt to Asia and Europe we have'nt the money to pay the principal let alone the gold to pay the interest! The Federal Reserve is killing our great country, it is illegal unconstitutional and plain immoral! Anyone who says the Reserve is a good thing needs to actually research it and the points of view of numerous patriotic Senators and Representatives who have had the guts to speak out against the travesty it has been for our God given freedom over the years. To save our economy, our personal liberties and our very way of life we must abolish this traitorous institution so effectionately called the Fed by the media. Its our only hope of staving off disaster.
- Pearly SweetcakeLv 41 decade ago
Obama will be giving tax breaks to both people and small businesses. The only ones who will be getting a tax increase will be the people who pull $250,000 a year. 95% of Americans earn less but the people above $250,000 a year rake in more money which is not taxed at all.
- Michael R-4Lv 41 decade ago
As of now, we need to bailout actual American homeowners. We need a bottoms-up bailout, not a top-down one like the one Obama advocated and voted for. The Bailout is the single largest legislative transfer of public wealth to private interests in the history of our nation.
And we are no better off. I think that banks need to be invested in by the government--banks that will lend and promise not to foreclose on homeowners in trouble.
Anyone who thinks that paying off the bad gambling debts of speculators and financial parasites will save the economy is smoking something funny.
- AlmondLv 51 decade ago
Tax breaks for the people, its obvious by now that Obama and Biden will win this election. Obama has a clear and concise plan to get this economy back on track and I support him 110% and so should the rest of the country if we every plan to solve this economic crisis.
- SonshineLv 51 decade ago
No need to restore it...
One biological, chemical or nuclear bomb and we're done
good or bad economy.
With O having tea with the enemies, them all cheering him on, he is wanting to cut military, etc, etc. we will be "wiped off the map" just after Israel. His people (meaning his relatives worldwide) do see us as the "GREAT Satan" you know.