I tire of the lefties who constantly whine that free marketeers "don't have any ideas about immediate action," simply because we point out the factual truth that 100 years of Obama-style "stimulus" has been, without exception, a failure that usually *extended* economic malaise.
You want quick action and radical solutions that would deliver real results in this economy? Fine. Here they are. All of them would remove the massive barrier to growth and investment that government has become, and would create real, lasting jobs pretty much immediately.
1) A five year payroll tax moratorium. This would create 1 million new small businesses and 7 million to 8 million new jobs within the first two years of the implementation of the plan.
2) A 15% across-the-board reduction in government spending in EVERY federal department. The federal government is rife with waste, as even the most outspoken lefties will concede. It surely would not be difficult to examine and extract 15% of the budget of each department while having little to no impact on its operations and functions.
3) Eliminate the capital gains tax on sales of stock, personal real estate, and commercial real estate on profits up to $1 million. Stock market crash? What stock market crash? 3 million new jobs created.
4) End TARP. Take the remaining funds and allocate them to the FDIC to cover deposits at the banks on the brink of failure. Liquidate the insolvent ones that are "zombies" and distribute their assets to efficiently-run banks that didn't make bad loans. Credit card companies, auto finance companies, and other subprime companies or irresponsible lenders should be allowed to collapse into bankruptcy or liquidation as any failed enterprise would. The sooner the losses "off balance sheet" get on balance sheet, accounted for, and dealt with in bankruptcy, the sooner confidence returns to the market. 1 million new jobs in financial services created.
5) Treat interest on any personal debt accumulated prior to Febrary 1, 2009 as tax deductable, so long as the debtor is paying down at least 1% of the principle per month. This will create incentives to repay existing debt, reducing defaults, while also encouraging savings and sound personal finances.
6) Require federal employees to pay a proportion of their health care and other benefits identical to the private sector average. Those who object should be invited to find jobs in the private sector with similar benefits. State governments receiving federal funds or bailout commitments should be required to implement a similar policy with state employees before receiving those funds -- state governments that do not comply should receive no further "assistance."
This economic plan could be passed in an omnibus bill, and would largely pay for itself in a balanced package of cuts to offset reductions in revenue. New jobs would create new tax revenues and further offset the costs. And the program would create 11 million to 12 million new jobs -- a feature that not even the most brazen of shills for the Bush-Obama "borrow-and-spend-and-borrow-and-spend-some-more" approach would argue their plan delivers.