Well, he's finally coming around -- still below half full, but looking upward. This latest article reports: "Specific measures under the plan outlined by the president include a zero capital gains rate, as well as enhanced tax expensing and depreciation provisions." Now that should help small businesses survive and maybe even eventually grow again which would include hiring. However, instead of FUNDING it (why?), how about depositing $200B into income generating account in Treasury and use it ONLY if the expected tax loss from a zero CG occurs after 1 full year. Now I also hear the zero CG might only be for small businesses; thus, there is still no incentive for large companies to bring money and jobs back to America.
The second key category, infrastructure spending (bridges, roads, rail and water) is a second attempt to stimulate jobs. This I see is no more than a follow-on to the already unsuccessful program; I do not see any PERMANENT jobs from this.
The third category is clean energy rebates for home projects related to energy savings (insulation, windows, etc.) -- Note, there already ARE CREDITS for this, so I don't follow what he is planning here other than wasting more taxpayer money for a select few. Certainly the poor people and renters can't benefit.
From what I understand, and nobody does yet, this would all cost us $100B-200B from the unused TARP money. I say, forget the bailouts of the plans that never worked (infrastructure and clean energy) and JUST COMMIT to zero CG tax on businesses. Wouldn't think any money needs to prop this up, because I would expect the market would drive the companies by themselves. The expensing I see as a separate short-term tool -- sure, go ahead and fund one years worth of lost taxes for the expenses.
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