A Quick Jolt For the Auto Economy, Plus Ten
By Steve Selengut (12/18/08)
Thirty Billion Dollars is a huge amount of money, but it translates into less than $100 per US person--- a small price that we should all be willing to pay to give the Automobile Industry time to restructure itself and to save a few million jobs.
Give them the green, but have them pay it back in a more economy and environment friendly manner. Here's the deal:
Every new American-made car buyer would receive a debit card along with his ownership papers. The card could be used for anything other than the car purchase itself. Card amounts would vary from $6,000 for "smart" cars, through $3,000 for fuel-efficient sub-compacts, $1,000 for other borderline greenies.
The debit cards would lose 20% of their value per month if not negotiated. All debit cards would function as free passes for all highway tolls so long as they are used with the proper automobiles.
The 60's gas-guzzler tax would be resuscitated and applied to all V-8's, SUVs, low gas mileage vehicles, and non-commercial-use trucks--- none of which would be eligible for the debit cards.
The tax would apply to all cars, foreign and domestic, and would be paid directly to a new private company formed by the top ten US insurance companies. This company would be the prototype business model for annuitizing the existing pensions of Social Security recipients.
And for the rest of us, let's encourage our elected representatives to try this list of popular economic stimulus ideas. Or, perhaps a better option, we could just fire them and start over.
One. Phase out all corporate income and nuisance taxes over a three-year period, 50% immediately. Then, assure that corporations use 60% of the savings for job creation and/or non-executive salary increases.
Two. Eliminate all death and gift taxes at any level.
Three. Eliminate all taxation of retirement income received from any source (including Social Security, IRAs, private pensions, 401(k)s, etc.), and paid to persons age 55 and over.
Four. Slash Social Security taxes 50% for every employed person, and initiate a mandatory deferred annuity program (see SSRIA) for younger workers. Phase out corporate matching Social Security contributions over three years, as above, and matching self-employed contributions immediately.
Five. Implement a tort reform strategy that reduces all claims and legal fees by no less than 60%, and provides controls to assure that insurance premiums are reduced commensurately. Adopt a doctrine of personal responsibility for poor judgment, ignorance, stupidity, and recklessness.
Six. Establish a usury law that limits credit card interest rates, requires monthly debt reduction for card eligibility, and outlaws all extra late fees and charges. Allow providers to freeze delinquent accounts, but require flexible interest rates based on credit scores. A rate cap and outlawing the unsolicited mailing of credit applications is imperative.
Seven. Establish a 10% Federal Sales Tax on all cash (currency) payments for goods and services. Federal sales tax receipts would be used to fund annuitizing of Social Security payments and to fund Medicare payments.
Eight. Replace the Internal Revenue Code with a combination of the Fair Tax and Flat tax proposals that have been circulating through the Congress for too many years.
Nine. Adopt comprehensive shareholder protection legislation that would control and regulate abusive salary and benefit structures afforded corporate executives.
Ten. Eliminate income taxation of all forms of investment income, including rent, royalties, capital gains, and interest. Landlords would be required to reduce rents proportionately.
Or, stop the war and spread the wealth around.
Steve Selengut
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