Tax Policy - We need to enact tax legislation that targets job creation!

I’m now going to suggest TAX POLICY, one that, if followed, will spark “job recovery”. If we do not see a recovery in jobs, then there will not be an economic recovery for years and years. If we begin, and continue, to put people back to work, then they will have money to spend, and then, and only then, will we see a resurgence in consumer confidence and consumer spending. We need the latter in order to see a sustained economic recovery.

Congress has a long history of giving interesting names to modifications of our Federal Income Tax codes.

The tax policy I’m now suggesting be enacted into law can be titled “The Guaranteed-No-To-Be-Reelected Jobs-Recovery Net-Worth-Tax and Job-Tax-Credit,” or …. “TGNTBR JRNWT & JTC.”

Although I am positive this legislation would spark what would be a sustained economic recovery in the U.S., I seriously doubt that we have a single congressperson who would be willing to risk voting for this legislation, because, even though it makes sense from a tax and jobs creation perspective, it would be political suicide for anyone in Congress who relies on hand-outs from large companies, financial institutions, and high net-worth individuals. And, don’t they all rely on handouts?

The elements of “TGNTBR JRNWT & JTC”:

1) a One-Time Net-Worth-Tax of 10%; applicable to any individual who has a net worth exceeding $25 million but less than $50 million. The NW Tax would rise to 15% for an individual whose net worth exceeds $50 million.

2) a Job-Creation-Investment-Tax-Credit; companies who add employees to their payrolls would receive Tax Credits based on the total “net new compensation” paid to “additional” (new) employees.

3) a Job-Creation-Investment-Tax-Credit Pass-Through feature; high net worth individuals who are subject to the One-Time NW Tax are allowed to reduce and/or recapture the NW Tax by using Job-Tax Credits earned by companies who add additional employees to their payrolls. But, in order for individuals to be able to use these pass-through credits, they must invest in the equity (not debt) of the companies whose job-tax credits they use.

I also think we should enact tax legislation that “super-taxes” the profits of health insurance companies; these “super” taxes to be used to fund a government sponsored health-care insurance option. Our healthcare insurance system is totally out of control!