Desperate times call for desperate measures. English translation of an old Latin saying literally meaning, "Desperate diseases must have desperate remedies."
Can anybody under the age of 90 remember a more desperate economic situation than we face today? I doubt it. Maybe things are just desperate enough for our fearless political leaders to embrace some real change that we need and consider the following radical actions to promote economic growth. 1. End corporate welfare as we know it. If single moms with kids can get off the dole, so can big corporations and their lobbyists. Estimates vary, but this would save at least tens of billions of dollars per year that could be used for pro-growth initiatives, such as infrastructure, job training, tax cuts and energy independence incentives. 2. Eliminate the 1031 exchange tax deferral system for commercial real estate. This is basically a way that commercial property owners can avoid paying taxes on their gains forever. When you sell any other asset such as stocks or bonds at a gain, you pay taxes regardless of whether or not you buy another stock or bond with that money. There is no reason for commercial real estate owners to get special tax treatment. This change would generate tens of billions of dollars in tax revenue that could be specially allocated to help families whose homes are in foreclosure. Nothing is more fair, or pro-growth, than scaling back a tax giveaway for the rich to help middle class families in distress.