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This entry was posted on Wednesday, October 1st, 2008 at 9:40 am and is filed under Financial Crisis, Small Business. You can leave a response, or trackback from your own site.
Today the Senate will take up the task of voting on this gargantuan piece of legislation. Senate and House leaders, President Bush and McCain and Obama have been rummaging through ideas new and old, desperately seeking ideas that might appeal to enough lawmakers to reverse the outcome and pass the $700 billion plan.
Here is an idea: Let's help small businesses searching for greater access to capital and credit. This economic situation has hurt many small business owners and since they are the backbone of America's economic engine, let's focus on small business rather than Wall Street. Why can't small business owners get?:
- Elimination of the Alternative Minimum Tax
- Lower corporate tax rate-20 to 25%
- Zero capital gains
- Expand federal deposit insurance (helps if small businesses have any money in the bank and makes us feel better to have a relationship with one banker)
What is on your wish list????? Let's see if we can get any of this in the package!!??
October 2nd, 2008 at 1:52 pm
I think they should add zero capital tax gains. I am definitely for raising FDIC insured amounts, but according to the treasury department, insurance premiums on the bank for the current FDIC insurance has been waited since 1996, therefore, they could not even cover the loss currently let alone cover the losses that are higher. Therefore, this falls back on the tax payer again. I think the AMT should be totally eliminated. I think what they are currently proposing is a band-aid and I fear we will be back in the same situation in 4 years. They should cut is other areas to fund 1/2 of this bail out, like space.
October 2nd, 2008 at 2:08 pm
Saying I’m for or against is not possible without some comments.
I will not repeat what you wrote but say I agree with all your comments & suggestions.
I believe in a Free Market Economy. I believe we should have a stimulus package but put it in place in pieces. I hate to see the greedy loan writers get off free. But, I want something done soon for the emotional impact it will have on Wall Street.
What the every-day-people don’t seem to understand is that a house or business is very, very rarely worth nothing. If the gov buys low, stock will go up and it is even possible the gov will make money on the deal. Everybody talks about it as if we were sending money down a black hole never to see it again. The media talking about a recession is really hurting.
Lots of blame to go around at least back to Carter then the bill Clinton signed really hurt. I get sick of all the blame on Bush, but do admit he did not help. No one in a place of power to do anything significant was heard.
October 2nd, 2008 at 2:15 pm
Lower corporate tax rate. Most important to me and something I am very angry about is the “pork” added to this bill such as decreased taxes on wooden arrows. This is unbelievable.What can informed Americans do? How do we get the truth out and hold accountable those in Congress who are responsible? Why is the media so silent?
October 2nd, 2008 at 2:16 pm
I am against it!
October 2nd, 2008 at 2:25 pm
I disagree with this $700B package. All of those businesses in crisis need to figure out their own way to bounce back. If we bail out this group it will be another group a month later and we just have to stop doing this for corporate America. This is mismanagement and I don’t hear anything about anybody going to jail. One more thing as a small business if I mis-manage I go under. That is the American way to make room for others that have newer and better ideas. I don’t believe its going to be good for me one way or the other.
October 2nd, 2008 at 2:34 pm
There is no such thing as a free lunch, which is how I see the “so called bailout”. What has made our country strong was that 300 million Americans and a good portion of the rest of the world believed in our system and its underpinnings. Not know, and they will not unless we stop trying to delude ourselves. Banks will fail, people will lose money, and we should take our medicine…now. It will be worse if we continue to put it off and saddle the US with debt it will be unable to service. OK $700 million was too much so let’s make it $850 million and pork it up!
We need leadership that is willing to face the reality that the economy is sick and ake our medicine, not feed us more of what ails the economy, overspending, unrealistic valuations, avoidance of consequences.
This situation has unfolded in a way that illustrates a total lack of leadership in this country by trying to duck it. Both parties, all parties share the blame and has resulted in a loss of confidence in the US by Americans and the rest of the world. This bill hands out favors to everybody (i.e., “wooden arrows”)just to try to get it passed and uses smoke and mirrors to put off the disaterous situation.
Again, we need to take our medicine now, and I will suffer along with the rest of the middle class. But this veiled attempt at disguising it is just ridiculous. For example, doing away with mark to market accounting does not make the situation better…and no one will be fooled.
October 2nd, 2008 at 3:02 pm
Tax those in the upper 2% income level more than presently being done. This group isn’t just comprised of CEO’s, these folks include celebrities and sports figures who also earn ‘way above their value; no matter how much money they donate to charity.
Property taxes, homes and rents should be scaled to the ACV, not what someone’s willing to pay out of desperation. Or avarice.
Raise the corporate tax rate for businesses taking in more than $5 million/year on a graduated scale (the more you profit, the more you’re taxed ( most of these co’s put profit above people).
Keep low the corp tax rate for those starting and running businesses that take in less than $1 million/year.
October 2nd, 2008 at 3:07 pm
I would like to see all 4 ideas become realities.
October 2nd, 2008 at 3:10 pm
And I am against the 700 Billion Dollar Economic Rescue Bill.
October 2nd, 2008 at 3:11 pm
Because I am a retiree and depend on my IRA for income, I’m certainly watching the discussions and the voting. Your ideas would act as seeds to encourage business, followed by jobs, which encourage savings and spending and I would hope to encourage small business. I’m concerned about the special interests and add-ins that have nothing to do with righting our economy. Our public officials must know we are watching closely and will speak with our votes. I just hope that is enough.
October 2nd, 2008 at 3:30 pm
Simply stated the FAS 157 "mark to market" rule is the base cause of the problem coupled with the goal of the Democrats to attempt to see that everyone owns a house regardless of their financial capabilities. Nobody ever accused Barney Frank and Maxine Waters of being members of Mensa. P.S. The "mark to market" rule was stupid at its conception regardless of what the accounting firms say. You can tell their funds are not at risk.
October 2nd, 2008 at 3:31 pm
think this is the inmates running the asylum. Our government is the same one that required businesses to take bad risks and started a self perpetuating philosophy, and now they are proposing more legislation to fix what they do not understand in the first place. Until they understand how to construct safety nets (to solve a social need) in a way that does not ask the private market to accept bad risks but rather requires them to provide some modest help for funding the safety net (whihc should only include people who need help), we are in real trouble. When the entiltlement problems hit, who will be there to bail out the government. Further, the government should not be in business, for then how can they regulate it fairly. As such, any short term bail out to keep the financial system from collapsing (I agree this is needed), has to have an exit strategy for the government to sell their assets. Our Federal governemnt is totally out of control. And for a change, it would be nice to see them set out some principles associated with their actions, instead of shooting the gun and never again looking until the next crisis appears. Our political leaders pretty much deserve to be fired, and that includes those senators running for higher office. Thanks for the opportunity to vent. Regards, Mark
October 2nd, 2008 at 3:31 pm
It is imperative that a Financial Plan be passed. Any congressman not voting affirmatively, Rep or Dem, does not deserve to be re-elected. Constituents arguing otherwise have no idea what they are talking about.
October 2nd, 2008 at 4:15 pm
Our economy is based on consumption. Give the money to poor people and they will make purchases and pay their morgages which will then bail out the free market businesses by creating viable customers.
October 2nd, 2008 at 6:09 pm
Here are my recommendations :
1. Bailout funds to be used to back homeowner mortgages to ensure that they can keep their homes. The money would go to the investors only in the form of insurance or gurantees on mortgage loans for homes saved from foreclosure.
2. Second priority is to provide grants to states to offset tax losses due to depressed housing market.
3. Bailout funds provided to SBA to reduce fees and interest rates on SBA backed loans.
4. Increase the FDIC guarantees to $200,000.
5. Financing terms on bailou would be realized on a cash basis vice future basis.
6. Any gains realized on the bailout would be applied to the social security and Medicare funds.
7. A share of the foreclosed homes would be donated by the financial organizations to provide shelter for homeless veterans and the poor with dependent children. The donation would be a tax write-off at the foreclosure cash value.
October 2nd, 2008 at 7:05 pm
I am so disappointed in our Congress, espcially the House Republicans who voted against the original bill. Now it has become a Christmas Tree.
We needed leadership and people who would do what was best for the country. So many of our “leaders” let the media report the misconceptions about the bailout being about spending the 700 billion and getting nothing in return.
October 3rd, 2008 at 6:03 am
I am against to be given $700B withiut saying why the bankes had failure of course.
Are thouse some government garantees of loans ?
Here in Britain they ussue equity - that’s LIFE TIME INSURENCE, instead property old people own.Then they settle them into Nursing Homes and sure all life support and nursing care.
But the most interesting is that busihess is in hand of foreiners from Pakistan and Africa.They gain almost £3 mln.weekly only from one county, there is 367 residenrual homes !
The single fee for everione resident is £450-800 weekly !
An there is 23 000 Residental&Nursing homes in UK altogheter
That is a great business isn’t it ?
But now just such equities and mortgages are in the base if the crysis.
Banks exchange all panells of them each other even transnational.Now they black governments to pay for that.
The small business also can not prosper because of mass import of cheap articles from abroad They are cheap but not qualitative.But people buy them because of crysis.
AND NOBODY CAN NOT BEGIN PRODUCING SUCH ARTICLES WITH INVESTMENT MONEY, at the same time because of low revenue.
October 3rd, 2008 at 9:25 am
The loans should be made only with collateral.
All of these companies supposedly in trouble have
enormous assets. Assets should be pledged until
the LOAN (NOT BAIL-OUT) is paid back to the citizens.
October 3rd, 2008 at 10:25 am
I am against the $700B bailout. If this is indeed a market economy, then those who made poor decisions need to take their come-upance. Some of the ideas (reduced tax rates, higher FIDC limits, changes in the AMT would be helpful, perhaps.
October 3rd, 2008 at 4:38 pm
Put up the money only IF Hank Paulson, Barney Frank, Chris Dodd step down and the earmarks are first removed. Then Franklin Raines has to admit, along with these others publicly admit they used Freddie and Fannie as cash cows, protecting them to the end.
October 7th, 2008 at 2:47 pm
I am totally against this bailout. For some humor (that explains *exactly* what happened)in these dark times, watch this parody:
http://patdollard.com/2008/10/it-is-here-the-banned-snl-skit-cannot-hide-from-louie/