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There is no faster way to create wealth than to do away with the capital gains tax for five years. For most people, the capital gains tax, the tax on the difference between what you paid for something and what you sell it for, is at 15%. To cancel it out completely would motivate every business in America to create new ventures or invest in new ventures. This would result in many new jobs, new equipment investments, property rentals, travel and entertainment expenses, and a gargantuan increase in spendable incomes, so many new incomes that the economy would begin to perk in hardly any time. Simultaneously, the government should force banks to lower mortgage rates instead of bailing them out. People would begin to buy homes. Banks would stabilize. And, the government would benefit by taxing the incomes from new jobs, and states and local communities would benefit from the sales that result in a new investment energy.
Wake up, government. You must ask yourself: Where is the meat that will create wealth and save the economy? The meat is in the capital gains tax, and the government should give it back to the American people. Don't let the politicians make the rich-get-richer argument when the nation is on its knees, and if they don't do it, vote for everyone on the ballot but a new President in November.
DENNIS SMITH, founding editor of FirehouseÂ®, is chairman of First Responders Financial. He can be reached at email@example.com.