There's nothing really wrong with these ideas. But even lumped together they don't make a significant dent in our economic problems. They don't deal with the thousands facing foreclosure, or the threat of bankruptcy. And they don't work together to get the economy going again.
Whatever happened to the idea of putting money directly into paychecks by cutting the payroll tax -- FICA -- the one tax everyone pays? Just a one-line proclamation would stimulate the economy and provide relief to families that have only one remaining income to fund their lifestyle.
Sure, FICA is supposed to fund Social Security. But since we've already gobbled up the so-called "Social Security trust fund" anyway, why not try to make hiring less expensive for employers, who pay half of FICA? Lower hiring costs could go a long way toward creating -- or saving -- those 3 million jobs the president keeps talking about.
The Fair Tax advocates are coming out of the woods. And maybe they have a point that will get some attention this time around. It's a national sales tax with appropriate exemptions for basic spending.
There would be no income tax, either corporate or personal. Instead, you would give the government 23 cents on every dollar you spend -- and only when you decide to spend it.
Without withholding, working people would get an immediate boost to the bottom line in their paycheck, as much as 50 percent! Now, that's a stimulus!
The Tax Foundation estimates we Americans will spend $350 billion just complying with the current income tax code in 2009. Think of the savings if we collected taxes only on spending -- instead of filing all those forms, paying all those accountants. A side benefit: The underground economy would be taxed when they go shopping. And all the offshore corporate profits could be repatriated without the bit of taxes at a 35 percent rate.
What's wrong with these easy solutions? The big problem seems to be that they'd take power away from Congress.
I've often said that the only thing worse than having an economic problem is Congress deciding it has the solution! The stimulus bill is even more proof.
And that's The Savage Truth!