>>This would put a bunch of money back into the pockets of average americans who would in turn put it back to work in the economy <<
The "average" American is still spending his head off. He doesn't know when to stop. The problem we have is not enough capital investment. Give all the tax breaks to the rich and the corporations so money will be used more wisely. J6P having a few more bucks for another round of new cars, wide screen TV's and fast food will not turn the economy around.
Tax write offs on car loans and credit card interest? I, as an equal taxpayer, am getting tired of subsidizing those that don't know how to manage their money. The home interest deduction is bad enough. A tax break on interest being paid to buy a new wide screen TV? Let's get real!
Double taxation on dividends? Think about what you are saying. I guy goes out and buys a piece of a business (a shareholder). His company makes a profit and the government taxes those profits. Then when the owner wants to take those profits that he earned and move them from the business account to his personal account the government taxes him again. How about just repealing the double taxation just because it is grossly inequitable. Now, do you really think that you should get a tax break on consumer debt over the guy that has invested in an American business and is being double taxed on his earnings?
Think if we remove that double taxation the guy might be willing to invest more in American businesses?
I say do away with corporate tax completely. They just pass it on to the consumer anyway in higher prices. If J6P saw how much is really being paid in taxes and not hidden in higher end user cost, then, maybe J6P would start paying a little bit more attention to those in Congress that keep spending away.
In closing, the American economy is toast for the most part. Taxes and such are part of it but it basically boils down to our demographics and cultural changes that have taken place over the last 50 years. These factors are irreversable. My recommendation to all those that are unfamiliar with the markets and can't read a 10K, is to get out of stocks and put all your money into treasuries and bonds. Not bond funds but the bonds themselves. Only investment grade at that. Most should probably just stick with treasuries. The bear market has legs and it's going to last for a long time. Of course I'm not talking about traders, but those that keep investing on hope.
JMO, Joe
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