TARP

I have heard the experts say that TARP was necessary to keep us from falling into a depression and I don’t understand international finance so I cannot challenge them. When it comes to the 1.4 trillion we spent on quantitative easy (stimulus 1 and 2) I believe that if we had sent that money directly to the people we would have gotten a better return on the investment. Since there are 160 million people working that would have meant $9,000 to each working person. It could have been made progressive by saying we would send checks only to those whose family income was less than $50,000. This would have meant $20,000 per family.
Nancy Pelosi says that unemployment benefits stimulate the economy and I agree and this money going to lower income families would do the same. It is too late for that but it is not too late to extend the payroll tax benefit which sends money to those who earn less than $106,000 per year. I thought Obama’s idea of going to 3.1% for employees and employers was an even better idea. I understand the deficit is a serious problem but I think the way to solve it is not by spending less and taxing more but rather by growing the economy and both of those ideas would tend to contract the economy.
Let’s get rid of loop holes and lower the tax rates on both personal and corporate. Let’s quit the double tax on dividends and lower capital gains to zero. Let’s make only minor changes in entitlements. We will have to change social security and Medicare but after we get the economy growing again. With these changes in the tax code the 2 trillion that companies have overseas will come home and our new lower rates will attract new foreign businesses. Another trillion that companies are sitting on will be used to expand. As the country begins to grow the government can assist with all of the infrastructure that needs upgraded.