In 2007,corporate tax receipts were $370.2 billion dollars and capital gains revenue was approx. $134 billion.Together about $504 billion dollars.Speculation is for Obama to spend twice that on the 2009 stimulus package.This to create infrastructure projects and Government funded jobs for the most part.While the infrastructure work is needed,it won't create wealth for the economy.Nor will Government created jobs which will instead draw down the economy as they are taxpayer funded.
I have to wonder if we eliminated the corporate and capital gains taxes completely for this year what effect that would have on the economy.Imagine no corporate income taxes.Do you think companies may invest attempting to maximize profits they won't be taxed on?Possibly hire some people to support these investments?Don't forget,corporations pay capital gains as well so they get the double dip.Permanent reductions would be the key for businesses to invest long-term.
I think this would unleash an economic gold rush.People would benefit with wealth creating private sector jobs necessary to expand business.Personally,they would also benefit from the capital gains suspension and buy and sell assets freely.Just imagine for a moment the potential of this.
This would put people to work immediately.Construction would increase.Foreign investment would boom.Expanding companies also demand support from manufacturing and industry thus you get the trickle down effect when everybody is using more products and services which results in various other tax revenues increasing.
People getting jobs.Companies making more profits.Government tax revenues increasing in all other areas.Win,win,win!Still want to jump in with Obama's plan?More to come...