Crazy Ideas for Obama’s Speech to Fix the Economy: Spend it or be taxed

Crazy ideas for Obama's speech on the economy and jobs

We need crazy ideas to get out of this mess. Share yours as well.

 

Obama needs some crazy ideas for his speech to pull the economy out of its double dip. The government has no money and is deep in debt. Large companies are sitting on a pile of cash and making great profits. Less than 5% of the population owns I don’t know how big part of the total wealth.

I see taxes as a necessary evil. I rather do not pay them and like to see them as low as possible. On the other hand I also understand that taxes are the lifeblood of any government and that without this income anarchy will rule.

But let’s have a closer look at taxes. Not all taxes are the same. To me, the amateur on taxes, there two main types: corporate taxes and personal taxes.

We current government debt levels, enormous unemployment and close to zero economic growth, we need some temporary, unprecedented measures.

We need investments. We need jobs.

 

Here are three crazy ideas

 

  1. For a limited period of just two years…. Increase the corporate tax on net profits to 80%. How can companies avoid these taxes? Simple… Invest. Invest the money they make in their business. Spend it wisely, but spend it. Better to spend it than to pay it as taxes. Keep for now the profits low by investing as much as you can. In two years, you can make your profits again.

  2. Encourage companies who are sitting on a pile of cash to spend part of it. For two years again, increase taxes on dividends and introduce a 5% annual corporate wealth tax on the cash pile. How can companies dodge these taxes? Invest this 5% of their cash pile and spend it wisely on domestically produced goods and services.

  3. For 2 years again, increase personal taxes to 80% for all household income above $250,000 per year. If you are lucky and you are affected by this, how can you escape the taxes? Simple again. Only money that you spend on domestically produced goods and services are tax deductable.

 

What happens after 2 years? I don’t know. This type of measures can’t last of course.


But this results in investment and it leads to jobs. And it gives us all 2 year more the time to see how we get out of this mess.

 

What are your crazy ideas to solve this economic crisis? Or are you just waiting to hear what Obama has to say in his speech?

 

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