Non Socialist

“While I did not support this bill, I do believe that action is needed.

Measures like allowing U.S. companies to repatriate overseas capital without penalty and suspending the capital gains tax, rather than flooding the market with taxpayer money, are preferable ways to create liquidity.”

 

 

 

Press Release

Contact: Tom Dunn

October 3, 2008

520-481-7919

 

Statement on today’s bail-out

 

When Congress had a chance to stand up and do the right things for the American people, they didn’t.  The proposed bail-out couldn’t pass earlier this week.  Ms. Giffords voted against it because she wanted “adequate taxpayer protections” and complained that the legislation was rushed. 

 

Well, this new legislation epitomizes the systematic problems in Washington.

Instead of addressing the crisis and passing sensible legislation that would protect the taxpayer and not bail-out Wall Street on the backs of Main Street, a broken Washington saw an opportunity.

 

Washington (and the incumbent) seized an opportunity to pile on the American taxpayer.

 

They added pork for wooden arrows, racetracks, rum, bicyclists, and Hollywood studios to name a few. 

 

Our Congresswoman Giffords wouldn’t stand by and say “no!” to the pork.  She added her own.  I support the extension of the solar tax credits.  These are tax credits that are important, but can pass on their own without bailing out Wall Street. Her vote to roll over taxpayers was bought with tax credits that a real leader would have passed months ago as part of an all of the above energy package.

 

 This bill should be about protecting our taxpayer, stabilizing our markets and strengthening our economy.  It should not be about how much more pork barrel spending you can get away with.

 

Southern Arizonans deserve someone that will stand up for them and do the right things. 

 

www.TimBee.com

 

###

 

 

 

Paid for by Tim Bee for Congress

Rescuing the Rescue Plan
Why not fund it with tax-advantaged private funds?

By Phil Kerpen

September 30, 2008 8:49 AM

The surprising congressional defeat of the Treasury’s bailout plan triggered one of the worst stock market days in history, destroying trillions of dollars in shareholder wealth.  The narrative that carried the day was that ordinary taxpayers shouldn’t pick up the tab for the excesses of Wall Street. But the half of American households that own stock may be surprised to see how much inaction costs when they read their next retirement-account statement, due soon with the third-quarter ending today.

Most members of Congress understand the gravity of the current seize-up in credit markets, but many bowed to political pressure from back home and voted against the rescue measure. Fortunately there is a solution that can solve both the political problem of putting taxpayer dollars at risk while getting credit flowing again and soothing the stock markets: Fund the rescue plan with tax-advantaged private funds.

Republicans already have signaled that the addition of tax-relief provisions to the rescue bill will bring more votes to the table — easily more than the 12 votes by which the original plan failed. Democrats, however, are sure to balk at tax cuts that bear only a limited connection to the current crisis. Tax cuts here would be seen as political opportunism, no different from the so-called affordable-housing giveaways to liberal political groups and union proxy provisions that some Democrats tried to hitch to the original bailout bill.

But the key to solving this problem is to direct the tax relief at the purchase of troubled assets.

A Treasury facility could be set up to operate exactly as suggested by the original Paulson plan. As such, it would buy troubled assets to provide markets liquidity and serve a price-discovery function. However, instead of funding the facility by selling Treasury bills that would impose a debt on future taxpayers, some or all of the fund could be constructed of capital that is voluntarily committed by private entities. And here’s the tax-cut sweetener: All funds invested in the facility for a five-year holding-period would be tax-free, exempt from the capital-gains tax, the corporate tax, the death tax, the repatriation tax, and any other tax that would otherwise apply.

 

Based on the number of commentators who are convinced the government will make money on this deal, the private capital would pour in. Billionaire investor Mark Cuban suggests that the new Treasury facility trade on a stock exchange as an exchange-traded fund. Cuban says that he and many others would be interested in such an investment.

The tax-exemption also would boost general investor interest by raising the after-tax rate of return of the rescue facility. With asset prices as low as they are, the Treasury facility would be a pretty good bet. This concept could even be taken a step further: Private entities could be authorized to establish in accordance with the rules for purchasing distressed assets, qualifying them for the new mega-tax exemptions and allowing them to compete with the Treasury-run rescue facility.

This solution should appeal to both the Republican and Democratic members of the House who voted no on the original rescue legislation. The major concern of these politicians has been the unpopularity of committing taxpayer dollars to an investment in distressed assets. But this new option addresses that concern by allowing the Treasury facility and its competitors to be funded by investors who see the value in purchasing these assets, all while reducing or eliminating the need for taxpayer dollars.

This compromise approach could be up and running rapidly using conventional government finance procedures, and private investment could be brought in as expeditiously as possible. And since this approach does carry the risk of creating a new quasi-government entity — along the lines of the government-sponsored enterprises that helped create the problem — it should carry a sunset date.

With the crisis spreading from the credit markets to the stock markets to Main Street, the decision to vote no may prove to do more political harm than good. But this is a way out that can both pass Congress and solve the problem, all while reducing the downside risks for taxpayers.
— Phil Kerpen is policy director for Americans for Prosperity.

 Originally appeared on National Review Online.

Writen by a fellow blogger, I havent seen a better plan.

Think about this scenario as a way to clean up the mess we’re currentyly in- Let’s hear your thoughts Pat!

The Birk Economic Recovery Plan DN
This idea sounds just crazy enough to possibly work, so naturally it won’t be given serious consideration. How great is our bureaucracy!!

I’m against the $85,000,000,000.00 bailout of Wall Street pigs.

Instead, I’m in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let’s assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..

So divide 200 million adults 18+ into $85 billion that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.

Of course, it would NOT be tax free.

So let’s assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.

That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult 18+ has $297,500.00 in their pocket.

A husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your fami ly?

Pay off your mortgage – housing crisis solved.

Repay college loans – what a great boost to new grads

Put away money for college – it’ll be there

Save in a bank – create money to loan to entrepreneurs.

Buy a new car – create jobs

Invest in the market – capital drives growth

Pay for your parent’s medical insurance – health care improves

Enable Deadbeat Dads to come clean – or else

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we’re going to re-distribute wealth let’s really do it…instead of trickling out a puny $1000.00 ( ‘vote buy’ ) economic incentive that is being proposed
by one of our candidates for President.

If we’re going to do an $85 billion bailout, let’s bail out every adult U S Citizen 18+!

As for AIG – liquida te it.

Sell off its parts.

Let American General go back to being American General.

Sell off the real estate.

Let the private sector bargain hunters cut it up and clean it up.

Here’s my rationale. We deserve it and AIG doesn’t.

Sure it’s a crazy idea that can ‘never work.’

But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion

We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC

And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

Ahhh…I feel so much better getting that off my chest.

Kindest personal regards,

Birk

T. J. Birkenmeier, A Creative Guy & Citizen of the Republic

PS: Feel free to pass this along to your pals as it’s either good for a laugh or a tear or a ver y sobering thought on how to best use $85 Billion!!

Text of Draft Proposal for Bailout Plan

 

LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY

TO PURCHASE MORTGAGE-RELATED ASSETS

Section 1. Short Title.

This Act may be cited as ____________________.

Sec. 2. Purchases of Mortgage-Related Assets.

(a) Authority to Purchase.–The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.

(b) Necessary Actions.–The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation:

(1) appointing such employees as may be required to carry out the authorities in this Act and defining their duties;

(2) entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code, without regard to any other provision of law regarding public contracts;

(3) designating financial institutions as financial agents of the Government, and they shall perform all such reasonable duties related to this Act as financial agents of the Government as may be required of them;

(4) establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase mortgage-related assets and issue obligations; and

(5) issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities of this Act.

Sec. 3. Considerations.

In exercising the authorities granted in this Act, the Secretary shall take into consideration means for–

(1) providing stability or preventing disruption to the financial markets or banking system; and

(2) protecting the taxpayer.

Sec. 4. Reports to Congress.

Within three months of the first exercise of the authority granted in section 2(a), and semiannually thereafter, the Secretary shall report to the Committees on the Budget, Financial Services, and Ways and Means of the House of Representatives and the Committees on the Budget, Finance, and Banking, Housing, and Urban Affairs of the Senate with respect to the authorities exercised under this Act and the considerations required by section 3.

Sec. 5. Rights; Management; Sale of Mortgage-Related Assets.

(a) Exercise of Rights.–The Secretary may, at any time, exercise any rights received in connection with mortgage-related assets purchased under this Act.

(b) Management of Mortgage-Related Assets.–The Secretary shall have authority to manage mortgage-related assets purchased under this Act, including revenues and portfolio risks therefrom.

(c) Sale of Mortgage-Related Assets.–The Secretary may, at any time, upon terms and conditions and at prices determined by the Secretary, sell, or enter into securities loans, repurchase transactions or other financial transactions in regard to, any mortgage-related asset purchased under this Act.

(d) Application of Sunset to Mortgage-Related Assets.–The authority of the Secretary to hold any mortgage-related asset purchased under this Act before the termination date in section 9, or to purchase or fund the purchase of a mortgage-related asset under a commitment entered into before the termination date in section 9, is not subject to the provisions of section 9.

Sec. 6. Maximum Amount of Authorized Purchases.

The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time

Sec. 7. Funding.

For the purpose of the authorities granted in this Act, and for the costs of administering those authorities, the Secretary may use the proceeds of the sale of any securities issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under chapter 31 of title 31, United States Code, are extended to include actions authorized by this Act, including the payment of administrative expenses. Any funds expended for actions authorized by this Act, including the payment of administrative expenses, shall be deemed appropriated at the time of such expenditure.

Sec. 8. Review.

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

Sec. 9. Termination of Authority.

The authorities under this Act, with the exception of authorities granted in sections 2(b)(5), 5 and 7, shall terminate two years from the date of enactment of this Act.

Sec. 10. Increase in Statutory Limit on the Public Debt.

Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof $11,315,000,000,000.

Sec. 11. Credit Reform.

The costs of purchases of mortgage-related assets made under section 2(a) of this Act shall be determined as provided under the Federal Credit Reform Act of 1990, as applicable.

Sec. 12. Definitions.

For purposes of this section, the following definitions shall apply:

(1) Mortgage-Related Assets.–The term “mortgage-related assets” means residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before September 17, 2008.

(2) Secretary.–The term “Secretary” means the Secretary of the Treasury.

(3) United States.–The term “United States” means the States, territories, and possessions of the United States and the District of Columbia.