I am writing to provide a forum for local ideas that can either solve, prevent or respond to international, national, or statewide issues on a local level. Our TV often tells us that most political decisions that affect us are from the local level and if we are to combat local issues, we need to tackle these larger issues beyond trash clean-up and potholes (though these are very important as well).
So for the rest of the year, I am going to try and give a solution to the day's issues. Right now the stock markets are in free fall and the DOW lost 512 points! http://www.nytimes.com/2011/08/05/business/markets.html?hp
Here is today's Goal:
Prevent stocks from free falling, in order to halt a confidence caused recession
Here is my solution:
Pass a law allowing all investors over 55 to avoid capital gains on the first $50,000 profits from investments. This will encourage Baby Boomers and retirees (who have the most net worth) to really keep their money in equities because of this tax shelter. As well it is basically a tax break for the middle class. The side-affect is that CT & NJ residence might move to NY for the tax haven benefit it provides.
If this passed quickly in a bi-partisan manner in such a huge state like NY, it would make national news. We need to encourage investment in equities to show confidence in our economy. Another side affect is that Retirees and Baby Boomers are no longer "saving" money, they will spend this extra income on travel, gifts for children & grand children, & it could make the difference and allow a couple to feel more confident in buying a second home. ]
We would also write the law in a way that people making over $100,000 in profits from Capital Gain, do not get this tax benefit. The spirit of this is to help the middle class, while encouraging more investment in the US Stock Market.
No comments:
Post a Comment