Last week I emailed some ideas to Doug Holtz-Eakin — McCain’s chief economic advisor. Why? Just frustrated. Waste of time ? Probably. I imagine that it went right to a spam file … and I certainly didn’t get a reply.
Still, since McCain is supposed to unveil some new economic tactics today, I wanted to get my notions on the record. Interesting to see if any are included.
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Ken’s Ideas
1) Make the first $100,000 of capital gains tax free for everybody
(Note: Warren Buffet & other uber-fat cats
wouldn’t benefit much)
2) Make IRA and 401K withdrawals taxable at capital gains rates — not ordinary income rates
(Note: even though IRAs are down, many are still above water)
3 Make all capital gains from the sale of primary residences tax free … always
(Note: allows empty-nesters to downsize — currently,
only 1 primary home sales is cap gains free)
4) Allow home mortgage interest to be income tax deductible for the 65% of filers who use the standard deduction.
(Note: roughly comparable to Obama’s 10% tax credit
for mortgage interest )
5) Give a 1-time stimulus payment to Social Security retirees equal to 1 month their annual SS benefits
(Note: gets some relief to fixed income Seniors)
6) Shift the payroll tax schedule by by increasing the earnings cap by $25,000 (to $127,000)
… but give a non-refundable tax credit for payroll taxes on the first $25,000 of earnings.
(Note: this Out-Obamas Obama)
7) Retroactively impose a draconian 1-time income tax surcharge for 2008 earnings OVER $5 million.
For example: a 100% surcharge on income over $
5 million would mean a 70% rate.
(Note: I realize this isn’t conservative and
muddies the “no tax” message … but it
goes right after the “greedy fat cats”
Note: tax changes can be retroactive
… puts responsibility on Dem Congress, this year)
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