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Articles by Donald E. L. Johnson

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Today is Saturday, April 19, 2014


How Eric Cantor Republicans can stimulate consumer spending, jobs

U.S. House Majority Leader Rep. Eric Cantor (R-VA) is promising to work with President Obama to stimulate consumer spending that is needed to create jobs, and he asked for comments on his response to Friday's dismal jobs report. I doubt that President Zero really wants to work with Cantor or the Republicans, because that would cost him the support of the House Progressive Caucus and the Hard Left.

I posted this comment, which I've edited and expanded a bit:

How to stimulate consumption that will cause businesses to hire more people:

 

1. Stop double taxation of corporations by cutting corporate taxes to zero. Tax and treat all businesses like multilateral partnerships.
 
2. Maintain dividend income taxes at 15% so investors will put more money to work in the bond and stock markets and spend more on cars, boats, houses, home furnishings, landscaping services, travel and iPads.
 
3. Condition repatriation of corporations' foreign profits on their agreement to invest the money in new businesses and on expanding existing businesses. They should agree to pay dividends to investors instead of buying back stock or making acquisitions. They should payout 70% to 90% of free cash flow in dividends after capital expenditures.
 
4. Capital expenditures should be depreciated in one to two years so that companies can reduce costs quickly and be more competitive in global markets.
 
5. Reform taxes to the advantage of all Americans, not to exceptional benefit of the favored few who can afford to be K Street clients and big campaign contributors to Congressional and presidential candidates.
 
6. Cut the budgets of the Education, Energy, Interior, HHS, Homeland Security, Labor, USDA and Commerce Depts. as well as those of EPA and the NLRB by as much as needed to balance the budget in five years. These are job killing agencies that must be defanged, shrunk and reformed.
 
7. Reform k-12 education to ensure that all kids with basic academic potential will enter the working world with outstanding reading, writing and arithmetic skills. No kid should study anything else until the basics have been mastered. Then learning anything else will be a snap. Penalize colleges that admit kids who don't belong in  colleges because of their academic skills or disinterest in higher education. They should be learning the trades. Educated people make good decisions for themselves and society, and they get good jobs that enable them to buy health insurance and live well.
 
8. Cut the 37 new agencies created under ObamaCare and eliminate all mandated benefits and exceptions that are in the legislation. Strip the pork, cut ineffective preventive care benefits from entitlement programs and make sure that castastrophic costs are covered by Medicare and Medicaid.
Posted by Donald E. L. Johnson on 09/02/11 at 09:40 PM
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