Saturday, February 7, 2009

Why is debt for Iraq ok, but debt to help Americans is disparaged?

Why does most of the press assume it's fine to go into debt for Iraq and Afghanistan but not for the American people and our Recovery, even though it's all our tax money? Who says it's ok to use our tax dollars for stupid wars and not for intelligent spending to help improve our country? Why do Iraq and Afghanistan come first? Where is the press on this?

A Dazzlingly Simple Bailout

What we need is A Dazzlingly Simple Bailout: A $10,000 Credit Card with an Early Expiration Date sent to American Citizens will cause immediate spending and thus immediate re-hiring.

In addition to jobs for green energy, infrastructure and education Congress should divide the next mammoth bailout the Senate Finance Committee is considering among American Citizens, by sending each a combination credit/debit card (let’s call it the Uncle Sam Congressional Card or USCC card) with an early expiration date to force spending now. Depending on formulation this could give $10,000 or more to each American family.

Who would get the Uncle Sam Congressional Card (USCC card)?
1. Every American family earning less than say $300,000 in taxable income would get a USCC worth $10,000 and each individual earning less than say $200,000 would get a USCC worth $5,000. (Congress will decide who will not get the USCC card; however, a cut off of $250,000 is much too low because if families earning $250,000 have kids and live in a big city they can barely afford rent, school, food, etc. Therefore, they deserve to share in this bailout, especially if they have lost their job/s). People earning over $300,000 should not get the card.

How would the USCC card be given out?

1. The Federal government gives Food Stamp Credit Cards to the poor and unemployed. The IRS has taxpayer contact information and with computers one can merge all taxpayers’ contact information with the Food Stamp Credit Card data base.

2. To save mailing costs, taxpayers can pick up their USCC cards at:
a) Banks; or
b) Post Offices; or
c) Automobile registry offices; or
d) Wherever Congress mandates.

3. Those who earn so little they do not have to pay taxes would also get the USCC card.
Food Stamp recipients are already given a Federal credit card so it should be easy to give them the USCC card, and to expand that program.

How the Uncle Sam Congressional Card (USCC) Would Work
1. The card must have an early expiration date to stimulate spending immediately.

2. This credit/debit card (USCC) should allow the taxpayer to buy whatever he/she wants up to the amount on the card. This will stimulate sales and thus hiring, immediately.

3. This USCC card should be in addition to funds for green energy, infrastructure, education, etc. because those bailouts will create jobs over the long term whereas this card will help the recovery, and stimulate hiring, instantly.

Uncle Sam Congressional Card would be the Most Efficient Bailout

1. Giving taxpayers the money will result in the most efficient recovery possible, and the fastest.

2. With this card in hand each taxpayer will be able to get a loan since the card will represent collateral backed by the US Treasury. The banks should be prevented from refusing to lend to someone wanting to borrow as long as the card can be debited to pay off the loan.

3. Small businesses can use the card to get small loans, to pay off debts, to hire, etc. and small business would benefit because we would all have money to spend.

4. Design the USCC card so that monthly loan, rent, credit card and other payments can be automatically deducted from it, if the taxpayer so desires.

5. An expiration date must be on each card. (I suggest an expiration date of one year to speed spending and the recovery.)

To Prevent Fraud with the Uncle Sam Congressional Card (USCC)

Do exactly what is done to prevent fraud with the Food Stamp Credit Card.

In sum, the Federal Government can just expand the existing Credit Card program used for Food Stamps to include taxpaying Americans. The stimulus effect will start the minute people have money and are able to buy things again.