Saturday, November 13, 2010

REVISE TAX CODE

1. Exchange-Traded Fund (ETF) Definition


Exchange-Traded Fund (ETF) - Definition of Exchange-Traded Fund (ETF) on Investopedia - A security that tracks an index, a commodity or a basket of assets ...

www.investopedia.com › Dictionary -



Exchange-Traded Funds are being discussed as the next scam like the mortgage backed securities debacle. It looks like another way to make money without investing in material jobs. This kind of investment does nothing to add to the economy, except for a few receiving commissions and a few receiving dividends. Money tied into these second tier investments produces no jobs, creates nothing material and freezes money out of circulation.

Carnival barkers rule. Taxes pick up their losses. Perhaps losses in investments that produce no jobs or material goods should not be tax deductable, which would discourage the practice. The prevention of future bailouts for these kinds of manipulative non producing funds must be a priority. Those subprime losses and the 'securities' losses should not even be tax deductable but instead were subsidized with tax money. Maybe these kinds of losses in 'non producing' investments should be taxed as a burden to the rest of the economy. Profits from non-producing investments should be heavily taxed also, in an effort to capitalize on and discourage non-producing investments.

Fannie and Freddy and any other of those who subsidize non producing investments like mortgage backed securities should lose funding. If the mortgage brokers go broke so be it. These people cannot control monetary policy and tax policy and all that would benefit them.

Our nation is becoming a playground for the rich for whom it is apparently easier to avoid messy investments that actually result in jobs producing something. Too much in the hands of the few did not bode well for other nations.

I think it is far too easy for politicians to put governmental agencies in debt to give tax money to special interests who were making risky investments. That is not capitalism: It is parasitism. Tax the ass off these people and those non producing investments. Tax the original lender if a home is foreclosed, as it increases welfare and homeless. Tax the owner of record of a foreclosure at a higher rate than residents, because the empty house requires increased police patrols. Provide tax incentives for keeping the homes in the hands of the buyers, instead of tax incentives for eviction.

Tax policy is a tool and should not be a weapon. We need to work together to solve economic problems that are causing unemployment and scarcity of money. Stop passing the bubble around like a hot potato and let those who profited from the fraud fed bubble take the losses. Why not create tax policies to achieve this aim?

What kind of capitalism is being promoted by these archaic tax policies that reward making bad loans and eviction and tying up money? Special interests bailouts will make this monetary system a reversion to the wealthy oligarchies of the past where the masses are expected to absorb fewer jobs and a tax hike while more money is concentrated in the hands of a few? Taxes on the upper echelons should be increased, with easing provided for increasing employment in local sustainable businesses. Spending on increasing infrastructure should be avoided, with infrastructure maintenance to be encouraged as a source of jobs, but not the only designee for funding. The kinds of businesses that should be funded are those that build up a continuing business for example like a sewing business that imports fabric, sews it into something salable, sells it locally at a reasonable price that competes. Flip side would be that Pima cotton is once again grown here, thread is spun here, cloth made here, sewn here, sold here and elsewhere if there is a surplus. Pima cotton used to be famous and cotton seed oil is a commodity. This is an example of what could be accomplished. A cottage copper industry would create more long term jobs than a huge short term mining operation. Sustainable jobs should be the focus of tax break investments.

ADVICE TO THE POLITICIANS: GET BUSY AND MAKE SOME TAX CHANGES THAT BENEFIT MAINSTREET!





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