Wednesday, January 28, 2009

The Bailout Plan

It begins to look like the bailout is going to be the biggest earmark ever. Every senator and representative wants in on this. Pork barrel spending on steroids. This is the worst oinker since the bridge to nowhere.

I have a plan which will never be enacted which may not solve the economic problems but could help at least part of it. The stock market has lost maybe 40% of its value. My plan could fix that.
The tax laws are such that business is unfairly treated. Profits are taxed at perhaps abut 35%.
From this already taxed amount they may pay out dividends as they see fit. Then the recipients of the dividends are taxed again, perhaps as much as 35%. This is the well known double taxation
My suggestion : Pay out dividends as an expense and pay taxes on whatever is left. Dividends would go up enormously and stock prices would soar. The rich would get richer ( Horrors ) but the rich are not the only shareholders. Perhaps as many as 50% of the population will benefit through holdings in IRAs, 401Ks, trusts, and other types of accounts.
Simple, sensible measures are not usually what our governing elite think of.