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Obama should be a bit creative on tax of 2009 or 2010.
by
Anonymous
I came to see TPC's blog because one of my son's Rutgers Economic Professors came here. He did very well and got A's in both Macroeconomics and Microeconomics. He is going to follow Milton Friedman, Rutgers alumni who got Nobel Prize in Economics in 1976.
So, here is his creative idea that Obama may be able to do much better using one stone to kill two birds or more.
In stead of levy more tax from the so-called riches since any more tax seemed to create deadweight loss and it is no good idea to happen in current economic situation.
So, why not give big "deductions" to the riches, say, in 2009 or before 4-15-10? When you give the riches generous deductions during current economic situation, you will be very sure that many wealthy people will go out to spend, spend and spend, that shall generate lots of tax income and create lots of jobs.
e.g. Not long ago, I went to see Mercedez Benz dealer in Edison NJ, and I was surprized to see a brand new 2005 un sold Benz. Why not tell the riches to buy those luxury items they always enjoy, and give them some deductions, and, as you know, many parties will benefit, to the least, NJ State will collect 7% sales tax.
The problem of current economic situation is that the riches will not spend money the way they should. So, the way government can encourage them is thru tax.
When my father turned 70, and I held a birthday party at King's Chef at Woodbridge NJ, all who knows the party can come to eat free. As you can guess, the restaurant owner and waitors were much happier to see the crowd and lots of revenue, whereas, they would not be so happy to see the so-called "stimulus money".
If you ask Ching Liang at Remax Metuchen, who got gold medal in 2006, 2007 and 2008 and top in 2009 so far of NJ, she would tell you do not send her any "stimulus money", refer some buyers to her would be all she needs.
So, you know American needs, they do NOT need unemployment benefits, they do not need stimulus money, they do not need soup kitchen...etc. What they really need is a great way to stimulate economy that generate lots of business and jobs, and income and tips follows.
So, what is the best way to do this? Give the riches lots of incentives in 2009 or 2010 to spend lots of money, and that will automatically create lots of jobs and businesses.
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