Solution to Problems

Problem: Housing numbers still not showing a recovery


Problem: Employment numbers still not showing growth

Problem: Companies are still not meeting downgrading Street expectations

Problem: GDP is erratic

Problem: Credit still depleting



All problems that are now in the second year since Oct 2007’s financial crisis. We all know the problems, but very few viable solutions have been presented. You’ll hear President Obama today talk about the crisis, greedy bankers, political splits, a call for joint reform, healthcare is still a problem, deficit still out of control, people are still out of jobs, and the list will go on. All finger pointing with no active plans to SOLVE the problem. I am offering a solution instead of hearing about solutions that do not work.



CUT THE CAPITAL GAINS TAX!



Yes that is right, if you cut the capital gains tax, it would induce a massive capital injection into US companies, which would give them capital to hire the unemployed, innovate, which will increase earnings, which then will offset the tax cut, due to corporations will pay higher tax dollars on higher revenue. Spending will increase because people will have more discretionary income due to more job creation. GDP will increase, there will be more of a balance in trade and will allow the government to BUY back debt which will decrease the deficit. This will increase confidence in the market place, and will allow people who are waiting for catalyst to buy homes get off the sideline and allow builders to build and inventory to be reduced, all because of a cut in investment tax rates.



This should have been done from the get go. Instead of all this hybrid stiff you see today. This would have put more money in peoples pockets directly and indirectly and none of this finger pointing and demonizing banks would occur. This is a viable solution to our great Nation’s economy. Pass it on!