Capital formation is the engine that stimulates economic activity. The following ideas support this principle.
First, reduce the capital gains tax rate on individuals to 10% from 15%; 25% on corporations from 35%.
Unless consumers and business have capital to invest, employment will never increase.
Americans are scared today to spend. The unstable tax environment restricts business ability to make long-term decisions.
Second, bring back the deductability of interest on purchase of cars, trucks, boats, RVs and most other durable goods.
In the past, a person bought a car, then transferred that loan to his line of credit on his home, only to write off the interest. This practice as been reduced.
Third, eliminate all taxes on savings interest earned. Without incentives to save, the economy will struggle.
Inflation is the cruelest tax of all. Look at the cost of food and gasoline today.
Disposable income continues to slide downward. Without incentives, consumers will not spend their hard-earned dollars.
Seventy percent of our economy is consumer spending. This economic environment is getting worse. Call your congressman and give him your opinion.
La Cañada Flintridge