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.
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I am honestly not sure what to make the of the most recent bailout plan. I am still not sure how different it is from the one Bush endorsed, nor if this one )did the last one?) will actually provide any stimulus.
Part of the confusion is that there are so many varied opinions on the matter.
Even among many experts (not the politicians), there is a disparity of opinions on how best to address the complex issues. If you ask me, they should have put together a think tank of experts, well funded, bi-partisan or non-partisan, diverse in their ideas - to assess the state of the economy, some of the root causes for its current malaise, and a vialbe set of options, both short and long term, that could help.
For now, it seems we are trying lots of things, but no one knows for sure whether they will help, hurt, or make no difference.
Dad, 35%!!! You are only accurate if you are talking about the wealthiest companies. The middle level pay a federal tax of 39% (it is a bell curve and some states tax as high as 10% more and then add a "franchise tax". At last reading our combined tax rate (including county business property taxes and city privilege taxes) came in at 46% of our overall profit. This does not count any of the hidden taxes on phones, internet, etc.
Yo, We small businesses ARE paying most of the bailout!
Nancy
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