Here’s my plan:
1. No more free bailout money for anyone. Instead, US government gives banks vouchers to loan money to private businesses. The banks must loan the taxpayers’ money within 120 days to a credit worthy (independent rating) business or they lose the voucher. The bank must have a stake in the creditworthiness and debt repayment of the commercial borrower (perhaps by withholding percentage of earned commission over time). Essentially, the banks become accountable, commission-based middlemen for government loans.
2. Government demolishes vacant homes in ‘designated’ housing crisis cities such as Stockton, Tampa, Phoenix, and Las Vegas. The HUD secretary should convene a meeting of city mayors to come up with a plan to condemn vacant homes and blighted properties, and to ratchet up building code enforcement to remove questionable vacant homes from the market.
3. Cut capital gains tax to zero until December 31, 2010. That’s right. No one pays one cent of capital gains tax on any capital gains earned from January 1, 2009 to December 31, 2010. However, short swing transactions still pay ordinary income tax rate to discourage short selling and speculation. Thereafter, phase back tax increases until they return to current capital gains tax rate of fifteen percent.
In addition, after 2010, no capital gains tax break for foreign companies and foreign entities. If you want to gamble in the U.S stock market, you have to pay the vig to Uncle Sam starting in 2011.
4. Extend unemployment insurance benefits for six months.
5. Methodical and rational troop draw down in Iraq to save US taxpayers up to $10 billion dollars per month. Apply some of the saved money towards giant infrastructure and public works programs here in U.S.
6. Repeal the Bankruptcy Reform Act’s means test provisions. Allow Chapter 7 petitioners to discharge all debts owed to creditors, and not be forced into Chapter 13 reorganization plans.
7. Prohibit all foreign companies from bidding on government contracts until 2012.
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