Fed Likely to Hold Steady on Rate Hikes (AP). AP - Federal Reserve Chairman Alan Greenspan and his colleagues are being buffeted by strong economic crosscurrents — rising inflation pressures on one hand and a sudden slowing in economic growth on the other. [Yahoo! News: Top Stories]
Step one: Jump the rate a FULL point.
Step two: Repeal any and all tax breaks issued in the last eight years.
Step three: Throw out all bills that require increases in spending over the next ten years.
Step four: Collect all taxes owed by all individuals and corporations.
Step five: Reduce defense spending by 30%, civilian sector spending by 20%.
Step six: Increase taxation on all banks and financial institutions. Apply a luxury tax to all companies with quarterly profits higher than twice the mean quarterly profits - and make it a 10% to 20% tax. Include land in the equation (since those in Chapter 11 bankruptcy reorganization - like, oh, K-Mart, seem to have made a profit...).
Step seven: Eliminate the current tax code. Introduce a sliding scale percentage tax with a rate of 50% at the $500,000 mark. Include ONLY the following tax exemptions: principle home mortgage, retirement savings, personal savings accounts (up to twice the FDIC guarenteed limit), volunteer activity charges, and a deduction for ALL medical charges.
Step eight: Introduce a federal excise tax on all goods and services of 5%, monies SPECIFICALLY earmared to pay down the deficit with extra funds diverted to by back the IOUs on Social Security.
Painful? You bet, but not as painful as the nation going bankrupt, which is closer to happening than many will admit.
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