The Homa Files

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.

* * * * *  

    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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This entry was posted on October 14, 2008 at 8:00 am and is filed under Government & Politics, Taxes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.