Opinions vary on the way to best stimulate a slow economy. But there seems to be wide agreement that nearly all the plans proposed will grow the already expanding deficit.
Given the above, it would appear what is needed most is action, which immediately increases spending and/or saving activities while effecting the deficit the least.
Therefore, I propose a contest!
Year 1 – a withholding tax vacation for three to six months for all wage-earners or salaried folks.
Year 2 – A reduction (not an entire erasure) of dividend taxes – equivalent in revenue loss to the program of Year 1.
At the end of three years, we should know for certain which action gives the most economic bang for the buck, with equal deficit impacts.
This would be valuable information to have if we find ourselves at this juncture again in the future. If we continue on our current path, this will almost certainly be sooner than later.
All other taxes should stay the same.
Lake Stevens
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
