Finger pointing, blame-gaming, attacks on character, catch phrases like "socialist agenda" and "party of the rich" are not going to fix the economy. This administration has not engaged in compromise so much as prostitution over the last 2 years. Harsh, but true. We need some bold initiatives that appeal to both sides of the isle to get us out of this economic funk, backed by leadership with spinal fortitude and the willingness to eat a few shit-sandwiches while making the feast.
The sad part is that it isn't really that damned hard, if partisan politics could be put aside for a while. Here is one neophyte's proposal that I believe could gain broad bi-partisan support and actually do something about improving our economic outlook, without throwing any particular class under the bus.
The number one cause of our current economic misery is employment, or lack thereof. Plain and simple. And even though the deficit was caused by massive tax cuts and reckless wars, employment can get you most of the way out of that hole. Here is my simple proposal to improve the unemployment issue and work on the deficit at the same time.
1. 5% American Re-Investment Corporate Income Tax surcharge.
2. For each dollar in non-executive payroll that a Corporation spends above the minimum wage and above Fiscal Year 2010 levels to employees working in, and paying taxes to the United States, corporations would receive an equal tax write-off (above and beyond all existing cost of payroll calculations) up to 1.5 X the amount of their surcharge (an exemption, NOT a tax credit).
These measures put a possible effective tax break in the neighborhood of 2% on the table to corporations who are willing to invest in the U.S. labor market, while stimulating hiring and increasing Federal balances. Domestic companies would also find an expanded market within which to work.
The last measure would have to be thought out much more carefully than I can afford to do here, as I do not know the nuance of corporate accounting and tax policy for foreign subsidiaries. My understanding, though, is that corporations that hire laborers outside the United States usually create a shell to avoid paying any income tax on those operations. If my understanding is accurate, then that needs to be eliminated, but not in such a manner that it causes undue hardship on companies that previously off-shored. The following is a ball-park approach that could accomplish that, fostering investment in the United States without damaging currently operating companies.
3. 25% payroll tax on all foreign payroll expenditures in excess of fiscal year 2010 amounts beginning in fiscal year 2012.
The only politicians and corporations that could be opposed to these policies are those whose interests lie in direct conflict with ours as a nation.
So sound off, got better ideas? Let's hear them. Because so far, I haven't heard any from our (or their) leadership that address any of the core issues.