Economic Stimulus - from anisotropic.us

With all the talk in Washington about a 'job stimulus' plan, I'd like to offer mine. I would offer a tax credit to all small businesses who hire new employees in 2009. Specifically, I would provide a 50% matching tax credit of up to $250,000 for every dollar in salary or wages paid to new employees hired in 2009. I would set the expiration for this at 2 years, with an option to renew or alter it as needed at that time; a hard expiration limit would be set at 4 years.

We don't need taxes at the moment, we need jobs....and, if we create jobs, the taxes and the economy will begin to take care of themselves. Additionally, small business credits will encourage growth everywhere and in all sectors of the economy.

Do you agree? Disagree? Have a better idea? I'd love to hear your thoughts (and so would your Congressional delegation ;) ) Just click discussions and chime in!

Brought over from the old site - 10/13//06

A progressive, "flat" tax:

Pick an income level...I'd toss out 2x the federal poverty line - to be clear about that, twice the poverty limit for a family of two would be $26,400 and $40,000 for a family of four.¹ Every dollar earned up to and including that amount would be tax-free. Every dollar over that amount would be taxed at 25% - no deductions, no loopholes - with one exception (below). The base amount is there to pay for housing, food and the basics (clothing, school supplies, etc.) you would only be paying taxes on what you make beyond what you need.

The only exception that I would propose is that contributions to retirement, (and perhaps college savings accounts and medical savings accounts) should be taken off your income - i.e. it is as if you never earned that income from a tax standpoint.

As an example...a family of 4, the total family income is, let's say $70,000². So, take $40,000 off the top and you are left with $30,000. You owe 25% of that, or $7,500...Make $100,000 - you'd owe $15,000.

Based on that sort of tax revenue coming in, the federal budget should receive approximately the same amount of revenue as it does today.³

I'd like to hear your thoughts.

1 - based on the Dept. of HHS 2006 Federal Poverty Guidelines
2 - the average family income in 2001-2004 was $70,700
3 - Based on census statistics and historical revenues that contribute to the federal budget