Make no mistake, another fiscal “stimulus” deal is coming. Politicians won’t pass on the opportunity to “rescue” the U.S. economy while funding a variety of pet programs in the process.
Republicans and Democrats are undoubtedly haggling over the amount and nature of the pork that will be included in the next debt-funded stimulus stew.
We favor programs that would allow companies and employees to keep more of the income they earn:
- Eliminate income and capital gains taxes.
- Eliminate death and estate taxes (which are outrageous).
- Replace the above taxes with a “pay-as-you-go” sales tax on businesses and individuals.
- Simplify State and Federal regulatory code.
These proposed changes would allow American businesses and their employees to prosper. The U.S. would experience capital inflows and the U.S. Dollar would appreciate. Monetary policy could then be put on a path to sanity. Interest rates could find a market equilibrium and the constant money printing in the name of debt monetization and interest rate suppression would cease. Fewer asset bubbles (equities, corporate and personal debt, housing, CRE) would exist.