Economy Improvement Programs

The United States economy is still mired in high unemployment. The home foreclosure rate has improved very little. Now the price of gasoline is rising at such a rate that it will strangle the economy or cause high inflation.

The Republican Presidential candidates acknowledge these are problems, but are too busy bashing each other to consider how they would fix the problems.

President Obama also acknowledges these problems. He realizes, though, as long as he blames the problems on the Republicans, then he will get reelected.

When Herman Cain was campaigning, he came up with the 9-9-9 plan for taxes. The plan was flawed, but it was at least a concrete proposal. It did provide a starting point for discussion. What plan has Mitt Romney, Rick Santorum, or Newt Gingrich put forth?

President Obama thinks he is safe. If the price of gas continues rising, it will stifle the economy resulting in higher unemployment rates. Voters will boot President Obama just to get a change of leadership.

How about some proposals?

How about 4-5-6.

Four years Presidency. Five percent annual Gross Domestic Product growth rate. Six percent unemployment rate.

These are attainable targets, and targets to which both the President, and Congress can be held.

These are admirable targets, but what about a concrete program to achieve them?

Enterprise Zones. Much of the United States is doing good economy wise. The biggest drag on the economy is in those manufacturing states where the jobs went overseas. Manufacturing jobs that it is said will not be returning to the United States.

Establish Enterprise Zones in those manufacturing states. Areas where any manufacturer moving jobs from overseas will be given a ten year exemption from paying corporate taxes. Perhaps the state itself could chip in the land and some tax relief, to get the jobs and put the land back on the tax roll.

Another item which is dragging down the economy is the number of foreclosed houses sitting empty. These empty houses not only cause other homes not to appreciate, they cause them to depreciate and result in lower property tax revenues.

Existing home owners use the appreciation of their homes to refinance debt such as credit cards. If there is no appreciation, then this debt can not be refinanced.

I propose a $1,000 federal tax credit to first time home buyers who purchased foreclosed homes. Perhaps the states could also add local tax credits to get the real estate market moving.

To reduce dependency on oil, I would propose a $100 tax on any new passenger car sold that did not have a hybrid or electric motor for power. A hundred dollars would not make or break a sale, but would speed up the design and development of passenger cars with more efficient hybrid and electric motors.

The hundred dollar tax would also put a FEW million dollars in government coffers.

Someone had better do something OR

Depression is Coming!