Recession Pushing Even Credit-Worthy Borrowers Over the Edge

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Our country desparately needs a centrist solution to the economic crisis that will increase household income quickly.
And I believe I have found a new economic strategy that will accomplish this.
We can try it first on a small scale as a trial run. I am talking about a tax credit for businesses who plow up to 20% of net profits back to employees; a profitsharing tax credit.
I believe it is the next great advancement for mankind.
It is outlined in greater detail in my FREE treatise online entitled PAYBACK at
www.profitsharinguprising.com
PLEASE NOTE: the “forward” in the book. It is written by John Huddleston, former Chief of the Budget and Planning Division at the International Monetary Fund.
He says, “it (the profit-sharing tax credit) may be the most practical way to get Congress engaged.”
More specifically, it is a 60% tax credit for businesses that plow up to 20% of net profits back to employees, on a regular basis (monthly or quarterly), before the business, banks, or government can abuse it. This is not a profit-sharing “savings” plan, nor is it a mere tax credit.
It is a decentralized, built-in, equitable distribution of wealth to the people who EARN the wealth.
It is the missing link of conservative supply side theory as well as the missing link of liberal economic democracy. It is a politically neutral concept that dovetails both liberal and conservative ideals.
Profit-sharing is a PROVEN management strategy to improve morale and productivity.
What are the multidimensional and macroeconomic consequences of profit-sharing?
It will increase household income substantially, especially if there are 2 working adults.
It will make healthcare premiums and mortgages easier to manage.
It is both business friendly and beneficial to the worker.
It will increase national productivity as well as local productivity.
It will create a built-in, regular economic stimulus. Consequently, increasing supply as well as demand.
It will maximize employment because old dead-end jobs are transformed into well-paid partnerships.
It will mobilize the unrecorded unemployed, and older workers as more jobs sprout up from increased demand.
It will create a wider tax base and more federal revenue, independent of tax increases.
It will replenish the Social Security and Medicare coffers, via increased withholdings.
It makes achieving economic self-sufficiency easier to achieve “ on-the-street”, without additional education, thereby
easing the strain on our safety net programs, and on our national budget.
It will compete with the “drugs and guns” underground economy; reducing crime.
It will restore moral leadership to America, by creating a new more egalitarian model.
It will refine capitalism to the system that would make our forefathers proud.
It will pay for itself from increased productivity, a wider tax base, and less dependency on centralized programs.

Darian Lance Smith of NC 8:58AM June 26, 2009

The banking lobbyists, with the aide of Senate lackeys like John Kyl, Specter,Martinez, Bayh and others, killed the bankruptcy legislation that would have allowed judges to adjust mortgages and keep people in their homes. The same banking interests that killed the legislation are now foreclosing on the same taxpayers that bailed them out with Tarp and Stimulas $$$. Obama and Geittner did little to help keep the bankruptcy legislation as they were also swayed by the big bad banking industry. As homeowners lose their homes remember all those ELECTED officials that talked and talked and got nothing done.As 2009 continues to see more and more displaced homeowners, we all need to pick up the phone once in a while and call the idiots that are supposed to represent main street.Tell them that this is their last term in office !

joe johnson of AZ 12:57PM May 30, 2009

As prime borrowers default, the speed at which property deflates increases. And as these prime borrowers now become among the millions with sub-prime credit the homes available to purchase simply cannot be purchased by very many people. So, the time it takes to rebuild ones credit is equal to the time the market becomes stagnant and no commerce takes place.
The unintended consequence is that Uncle Sam and his States, Counties, and Cities do not collect taxes on much because people cannot or wont buy goods and services so the entire economy contracts, while the poor and children suffer the most.
The answer is usually always the same, government must stimulate the economy using tax incentives to get business to invest in goods and services. Credit to buy homes and create a taxable event (usually a profit on something) will need to be easy and readily available.
Its business administration and economics 101...

Tom in San Diego of CA 4:29AM May 30, 2009

would make one think that EITHER the current stock market rally is a bear-market blip OR the Dow's fall to 6500 in March was an over-reaction and 8500 was as low as it should have gone.
But the notion that the whole economy has had reasons since March to point upward?
Besides Uncle Fed printing money it doesn't have, what would those be?

Muser of NM 3:45PM May 28, 2009