What the Federal Government CAN Do
In that spirit here is my suggestions for unfreezing the credit markets
- Suspend the withholding and collection of income taxes for 300 days. This is only 650 Billion (649,645,995,893 @ 2,165,486,653/day * 300 days) dollars not confiscated by the treasury and leaves the treasury with 1.7 trillion in revenues from other taxes. I know it is less than 700 billion, but if the Treasury Department can pull 700 billion out of its ass, I can pull 300 days out of mine. I selected 300 because it is a round number which creates a bailout figure of about 700 billion at current tax collection rates.Source: Heritage Foundation with income tax receipts comprising 30.8% of gross tax revenues.
If you are going to loot the treasury at least give the money to the people who earned it. [principle employed: Get out of the way]
- Repeal taxes on interest earned. [principle employed: Encourage saving (increase supply of credit capital) by getting out of the way]
- Repeal taxes on dividends paid to shareholders. [principle employed: Encourage corporate and shareholder savings (increase supply of credit capital) by getting out of the way]
- Repeal deductions for interested paid. [principle employed: Discourage borrowing (decrease demand on credit capital) by getting out of the way]
- Amend RICO so as to include GSE's such as Freddie Mac and Fannie Mea [principle employed: prosecute fraud]
- Do not permit re-writing mortgage terms by the Emperor of the Treasury. (see section 109(c) of the Paulson plan). [principle employed: enforce contracts]
The reason why this plan will not be adopted is that it does not create an Emperor of the Treasury which is the core, non-negotiable part of the Paulson/Bernanke/Bush plan.
The "bailout" proposed by the Paulson/Bernanke/Bush team is not about money or a mortgage such as the plan above is. The Paulson/Bernanke/Bush plan is about power. The design goal for the Puulson Plan is the stated goal of dictatorship.