Economic Recovery Act of 2009
July 5, 2008 by JB Mccord

Here is the proposed Democrat plan for economic recovery in this election cycle. this was initially intiated by my recommendations starting back in April 2008.

The American Manufacturing Credit – 5% non refundable tax credit on all capital equipment purchases for new manufacturing, refining, and mining facilities built in the US or its possessions. An additional 5% Credit for all purchases of “American made” products for building or refurbishing closed facilities. ( sunset clause 2015) (this will benefit companies producing vehicles in US and provide jobs in auto industry, so they can convert to new fuels and more fuel efficient vehicles) A 50% write off the first year of “placed in service” equipment. Balance written off over next 2 years. A tax exemption for US based companies that repatriate their profits to the US to benefit from this provision. This will also help stop the purchase of US companies by foreign interests.
Global Warming Reduction Act. A 50% write off the first year of “placed in service” pollution control equipment to support clean coal energy. Balance written off over next 2 years. Upper limit subject to $50 million of pollution equipment per facility. Make interest tax exempt for bonds floated by states,municipalities, or the federal governament for funding private companies for pollution control improvements within their jurisdiction with federal guarantee to state and municipalities. (This is in addition to the AMC above, sunset clause 2014.)
Home Purchase Credit – The up to $5000 Home Buyer Tax Credit is provided as a federal income tax credit to first-time buyers who meet the maximum income limits. (This was made available to Washington DC Home Buyers through the Federal Tax Relief Act of 1997 and should be implemented throughout the nation.) This should have a sunset of December 2011. ( this is same type credit I created in 1974 (Principal Home Tax Credit) to get credit worthy citizens to buy homes.) The one passed recently is simply wrong, it is not a tax credit, its a loan. The housing industry will fall deeper into depression unless the D.C. Type credit is implemented.
Iraq War Debt Reduction Act – 10% surtax on personal and corporate net taxable income over $250,000 and an additional 5% surtax on salary and exercised stock option income and non deferred compensation over 2 million per year. Sunset expiration 10 years after implementation. ( this has to be same for individuals Schedule C and Corporate to be fair to unincorporated business.) (those who benefit the most from a capitalistic system that fights for freedom with soldiers lifes and public funds should pay the most since they benefit the most)
Savings and Investment Provision – The first $2000 of dividends and $2000 of interest annually will be exempt from federal income tax. For those over 65 it will increase to $4000. (Obviously to increase and sustain the savings rate in America)
Capital Gains and Losses Equity Provision – 1) Capital gains tax would stay the same with a 19% tax on gains exceeding $250,000 annually. 2) Annual capital losses against other income would not be limited to the current $3000, but would be one million dollars. Capital losses on the sale of a principal residence would be allowed, but subject to a $10000 annual write off with carryover provisions. ( to assist those losing money when foreclosed on homes.
Alternative Energy Development Provision – A) 3 year Phase out of the current provisions subsidizing ethanol. Allow purchase of “loss” from alternative Fuel companies, when profitable companies buy them out and continue alternative fuel research for at least 10 years. ( Solar, Fuel Cell, Electric,Wind, Geothermal). Elimination of all Tax credits/subsidies to Oil and Gas Exploration and Production companies but allow Oil companies to buy up these companies with losses. Expires 2025. (B) Foreign Oil Import Tax of $2.00bbl. The oil from North, Central and South America NAFTA partners and Iraq would be exempt. This provides protection for the small oil operators “wildcatters” that find most of the new domestic oil and natural gas fields.
Alternative vehicle fuels provision – Government will convert all vehicles weighing over 8000 pounds to propane. Business and individuals will get a 100% write off of conversion costs, State and municipalities will receive federal grants for 80% of the cost to convert or 10% of cost of new propane driven buses, garbage trucks, and like vehicles.Restore the expired tax credits relative to alternative fuel driven vehicles, ie hybrids, expires 2020.
Oil and Gas Exploration provision – Allow the drilling on currently restricted offshore federal leases based on the usage of the existing federal leases currently idle. Allow 10 exploratory wells to be drilled on offshore restricted land for each successful completion of a new well (after 1/1/2008) on existing federal leases onshore. All new offshore oil produced must go to US refineries. Expires 2025.
The windfall profits tax should be avoided. It is too complicated, requires too big of an addition to federal government to oversee, and does not provide the tool to keep foreign oil more expensive than oil from the Americas and Iraq. A tariff on foreign oil is the right thing to do at this time with no sunset clause. We import 3 times the oil as we did when I recommended it(windfall profits tax) in the 1980’s. It was made so complicated by the Washington insiders it was only particially effective.

Sunset clauses are important to get capital to move to the targeted markets in a timely fashion, while other provisions provide tax revenue. With an expiration date that requires prompt planning and adequate time to implement moves capital where it is needed

Colin Powell for Ambassador to Russia.

Upon hearing of his bigger senate majority,Harry Reid said on Tuesday, "This is not a mandate for a political party or an ideology." A day later, Howard Dean told reporters, "I don't think it's a mandate for the New Deal."
http://www.ourfuture.org/blog-entry/2008114506/mandate-manipulation-machine-enters-stage-right

So why is Howard Dean saying that this election is not a mandate for a New Deal?

It is most certainly a mandate!
We voted for CHANGE
We voted for a new direction.
A progressive direction. A NEW DEAL!

We are going to have to hold the Democrats in Congress and President Obama's feet to the fire people.

Thank You Howard Dean.

Spotlight on Election Reform still Necessary.

This is one speech that will be remembered forever. It was great and truly historic.

It was an awesome speech.
It was an awesome night.

So many of the people at Grant Park had tears of joy streaming down their faces.

Yes we can!
Yes we did!

New site for Obama!

http://www.change.gov/

King: You said you don't want President Bush meeting with any more foreign leaders between now and the inauguration. Why?

Maher:: Because I don't trust him. He's got 76 days left to pull off one more giant screw-up and I don't think it's beyond him. I mean, the man does have a track record, Larry.

You know, I keep saying it, but I don't think this man will be happy until he leaves the White House smoldering behind him as he walks back to Texas.

http://www.cnn.com/2008/SHOWBIZ/11/06/larry.king.obama.reaction/index.html

THIS is what I was hoping for from an Obama election....reasonableness:

Over the weekend, a good friend of mine berated me for my presidential choice, listing off several predictable (and easily debunked) conservative talking points about the evils of Barack Obama. He flat out said that he can not support someone who is in favor of full-term/partial-birth abortions & post-abortion infanticide. I would agree with him, except the belief that Obama is in favor of those things is speculative... if not plain silly. In another conversation this weekend, one of my best friend’s mother stated that it is sinful to vote for Obama. She continued to deny Oboma’s claim to Christianity because of his views on abortion. (something along the lines that he is a liar, and true Christian will recognize that)

Does Obama have a pro-choice stance? Yes. Does that mean he wants to kill a bunch of babies? No. To believe that he does is foolish. So, what is Obama’s stance on abortion? He wants pro-life and pro-choice advocates to work together to reduce the number of abortions. That sounds like a good plan… right? Doesn’t logic demand that a reduction in abortions performed in the US satisfy both camps? Pro-choicers maintain their goal of freedom for women to choose, and pro-lifers preserve the sanctity of life.

http://nicholasccasey.blogspot.com/2008/11/abortion-aka-why-this-pro-lifer-is.html

Barack Obama gave another great speech. I look forward to him in the White House and leading the United States of America in the right direction.

Asher Heimermann
Wisconsin Teenage Democrat
http://www.AsherHeimermann.com

Tuesday evening I was at the Grant Park in Chicago and the atmosphere there was comparable only to the days of the fall of the Berlin Wall. When Obama began his speech, the crowd was suddenly silent, everyone was holding his breath, afraid of even missing a single word and the heart of everyone started beating faster. Some of us had difficulties not to cry of happiness and many, like me, simple goose bumps of joy. In a mild evening of November history was on his course, right there, right in front of our eyes. These are great days for America and for the entire world and it’s just the beginning; people are excited, enthusiastic, and euphoric. This is the end of the old era; a new wind is blowing and people clearly feel that history is about to change. Thank you Obama for let us dream again, thank you America! Sergio Caldarella, Evanston, IL.