Monday, December 01, 2008

Bright Ideas: How to Get the Cash to Main Street

There has been a rush among people within the up and coming Obama administration to settle upon some means of getting quickly to Main Street the money that has been accumulating in Washington for the fabled “bailout.”

The most efficient means of redistribution may be found in a short piece written by Johan Goldberg for National Review On Line, NRO.

“But rather than blow money on a lavish reenactment of the New Deal, or continue bailing out undeserving corporations, why not really think outside the box? Rep. Louie Gohmert (R., Texas) suggests an across-the-board reprieve on paying 2008 income taxes. This would leave an extra $1.2 trillion in the hands of Americans, who are the best stewards of their own money. Nobel Prize-winning economist Robert Mundell proposes a one-year moratorium on corporate income taxes in order to stimulate investment, job creation and the like. That wouldn’t be as popular, for understandable reasons.

“The details can be negotiated, but this sort of approach would certainly create more jobs and spur more consumer demand than paying for a lot of asphalt. It would buy a lot more prosperity than any corporate bailout. Politically, it could buy Obama and Congress a year to formulate a serious tax-reform proposal. And — here’s the amazing part — it would be much cheaper than what we’ve spent already.”
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