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A Stimulus Plan That Would Not Cost A Dime

By now we all know what Obama will say tomorrow night. 300 billion… or more. Saves teacher jobs… saving teacher union dues… save campaign cash for Democrats. That’s about it. We tried this crap in 2009, it didn’t work then… it won’t work now.

What would work?

This:

There is at least 1 trillion dollars held by US corporations overseas… profit from their overseas (non-US) operations. Having paid foreign taxes they don’t want to lose another 35% of it by bringing it here.

I propose that they be allowed to bring it in to the US as part of a one-time deal:

Any profit from foreign operations brought into the US from Oct 1st to Dec 31st 2011 will be taxed at a onetime tax rate of 10% Provided that:

All funds brought in are used to:

Hire people in the US over and above the reported employment levels on their Dec 31st 2010 tax forms.

Or…

Investments in plant and equipment placed into service in the US on or before Dec 31st 2012  over and above the reported capital investment levels on their Dec 31st 2010 tax forms.

AND…

if of that plant and equipment placed into service in the US, if it was manufactured in the US the deprecation schedule for that plant and equipment shall be cut in half (50%)

AND…

Any business based in the US with reported 2010 income under 100 million investing in plant and equipment placed into service in the US on or before Dec 31st 2012  over and above the reported capital investment levels on their Dec 31st 2010 tax forms, if it was manufactured in the US the deprecation schedule for that plant and equipment shall be cut in half (50%)

AND…

With the funds generated by the onetime 10% tax, provide grants up of up to 10,000 to each person unemployed longer than 52 weeks good only at DOEd approved technical, trade, schools or junior colleges provided that the program or certificate trains the person for one of the top 50 jobs as listed by the BLS

http://www.usajobs.gov/mostpopularjobs/index.asp

All this would result in:

100 billion of new tax revenue

Explosive growth

Increased employment

Re-training long term unemployed

And most likely Obama’s re-election (okay… so it’s not like he’s actually going to do this)

And would not cost a dime…

 

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