Tariff needed on OPEC Oil – Revenue for Tax Credit Incentives on Wind and Solar The new stimulus bill is close, but first there are too many pet projects that have nothing to do with stimulating the economy. If you look at my earlier posts from August and September you will see they are on track with everything I proposed back then.
The 2 things they have left off are revenue of a tariff on imported oil and its companion tax incentives for wind, solar, and other alternative energy sources. These 2 are key to get revenue to help offset the the Trillion dollar recovery plan we have in front of us now, February 3 2009.
Capital Gains and Losses Equity Provision needs to raise the 20 year old limit of $3000 a year on Capital losses to $50000 with no sunset clause and include the capital loss on a principal residence for amounts in excess of $10000 for years 2008 and 2009. there should be a sunset provision December 31 2009 for housing losses.
We have given the banking system enough direct funding. At this time we need to give banks access to government guaranteed mortgages. The 350 billion left in the second traunch of the TARP needs to be dedicated to nothing but government gurantees of the first $100,000 in every mortgage on a principal residence until December 31 2009. By setting a date certain qualifying consumers in a good job will start to buy homes knowing that a cutoff date is set.
I reiterate my July 2008 plan here because it is and was the right thing to do.
Economic Recovery Act of 2009
By JB Mccord
Here is the proposed Democrat plan for economic recovery in this election cycle. this was initially intiated by my recommendations starting back in April 2008.
- The American Manufacturing Credit – 5% non refundable tax credit on all capital equipment purchases for new manufacturing, refining, and mining facilities built in the US or its possessions. An additional 5% Credit for all purchases of “American made” products for building or refurbishing closed facilities. ( sunset clause 2015) (this will benefit companies producing vehicles in US and provide jobs in auto industry, so they can convert to new fuels and more fuel efficient vehicles) A 50% write off the first year of “placed in service” equipment. Balance written off over next 2 years. A tax exemption for US based companies that repatriate their profits to the US to benefit from this provision. This will also help stop the purchase of US companies by foreign interests.
Global Warming Reduction Act. A 50% write off the first year of “placed in service” pollution control equipment to support clean coal energy. Balance written off over next 2 years. Upper limit subject to $50 million of pollution equipment per facility. Make interest tax exempt for bonds floated by states,municipalities, or the federal governament for funding private companies for pollution control improvements within their jurisdiction with federal guarantee to state and municipalities. (This is in addition to the AMC above, sunset clause 2014.)
Home Purchase Credit – The up to $5000 Home Buyer Tax Credit is provided as a federal income tax credit to first-time buyers who meet the maximum income limits. (This was made available to Washington DC Home Buyers through the Federal Tax Relief Act of 1997 and should be implemented throughout the nation.) This should have a sunset of December 2011. ( this is same type credit I created in 1974 (Principal Home Tax Credit) to get credit worthy citizens to buy homes.) The one passed recently is simply wrong, it is not a tax credit, its a loan. The housing industry will fall deeper into depression unless the D.C. Type credit is implemented.
Iraq War Debt Reduction Act – 10% surtax on personal and corporate net taxable income over $250,000 and an additional 5% surtax on salary and exercised stock option income and non deferred compensation over 2 million per year. Sunset expiration 10 years after implementation. ( this has to be same for individuals Schedule C and Corporate to be fair to unincorporated business.) (those who benefit the most from a capitalistic system that fights for freedom with soldiers lifes and public funds should pay the most since they benefit the most)
Savings and Investment Provision – The first $2000 of dividends and $2000 of interest annually will be exempt from federal income tax. For those over 65 it will increase to $4000. (Obviously to increase and sustain the savings rate in America)
Capital Gains and Losses Equity Provision – 1) Capital gains tax would stay the same with a 19% tax on gains exceeding $250,000 annually. 2) Annual capital losses against other income would not be limited to the current $3000, but would be one million dollars. Capital losses on the sale of a principal residence would be allowed, but subject to a $10000 annual write off with carryover provisions. ( to assist those losing money when foreclosed on homes.
Alternative Energy Development Provision – A) 3 year Phase out of the current provisions subsidizing ethanol. Allow purchase of “loss” from alternative Fuel companies, when profitable companies buy them out and continue alternative fuel research for at least 10 years. ( Solar, Fuel Cell, Electric,Wind, Geothermal). Elimination of all Tax credits/subsidies to Oil and Gas Exploration and Production companies but allow Oil companies to buy up these companies with losses. Expires 2025. (B) Foreign Oil Import Tax of $2.00bbl. The oil from North, Central and South America NAFTA partners and Iraq would be exempt. This provides protection for the small oil operators “wildcatters” that find most of the new domestic oil and natural gas fields.
Alternative vehicle fuels provision – Government will convert all vehicles weighing over 8000 pounds to propane. Business and individuals will get a 100% write off of conversion costs, State and municipalities will receive federal grants for 80% of the cost to convert or 10% of cost of new propane driven buses, garbage trucks, and like vehicles.Restore the expired tax credits relative to alternative fuel driven vehicles, ie hybrids, expires 2020.
Oil and Gas Exploration provision – Allow the drilling on currently restricted offshore federal leases based on the usage of the existing federal leases currently idle. Allow 10 exploratory wells to be drilled on offshore restricted land for each successful completion of a new well (after 1/1/200 on existing federal leases onshore. All new offshore oil produced must go to US refineries. Expires 2025.