How to Get the Economy Galloping

Hello,

First, you must define who are the real “movers and shakers” of economic growth?  The genesis of economic growth are those individuals who put their money (capital) at risk to start legitimate business enterprises and hire people.

Therefore, to get our business economy moving in the direction of sustained growth, implement these three simple tax policies:

1. Effective January 1, 2010 the Capital Gains tax rate is ZERO.
2. Effective January 1, 2010 the corporate income tax rate is ZERO.  Corporations don’t pay taxes, people do (corp. pass on all taxes in higher prices for goods and services).
3. Effective January 1, 2010 the top marginal personal income tax rate is 25%.  Eliminate all tax phase-ins, phase-outs, and the alternate minimum tax.

This is the first but very important step.  The next step involves the other important economic ingredient–the Federal Govt. spending habit.  If the Federal government doesn’t get a rope around its out-of-control spending habit, it will suck vital resources out of the private sector lessening the positive impact of the three tax policies above. Federal spending should not increase any faster than the rate of increase in population and consumer prices.  This would currently be about 3% per year.  This number includes all Federal spending along with entitlement programs.

If these three actions are implemented, our economy will begin a prolong period of sustained economic growth.  The stock market will boom and New Wealth will be created.

It will take guts and determination for a national leader to fight for this.

Grow and Prosper,
Sanford Kahn, Business Author/Speaker