Plenty of options to jump-start things

I read the Jan. 18 editorial, “Governor has a smart plan to save, create jobs,” and the recommendation puzzles me. The idea that government can spend us out of a recession or should be our primary source job creation is ridiculous. Instead of passing another wasteful stimulus package, the federal government could help in the following ways:

Lower our corporate taxes (second highest in the developed world); make President Bush’s tax cuts permanent (allowing Americans to know that money is always available); lift many of the regulations on banks (allowing them to finally start lending, the reason for the first bailout); eliminate “mark-to-market” done to banks (this will help their balance sheets); and force Freddie Mac/Fannie Mae to provide home mortgages at a 4.5-5 percent fixed rate. The 30-year treasury note is at 3 percent and this would allow homeowners to refinance and use the money they make to buy things and re-invest in our economy.

The state government could spend less. (Wow!) First pass a constitutional amendment limiting spending to the rate of inflation and population growth, sending the excess to the state’s “rainy day fund.” Pass another amendment for a two-thirds majority of the Legislature to raise or enact a tax. The Legislature could revamp the B&O tax, especially the gross sales part, which taxes every stage a product takes in the process.

These are only a few steps that our federal and state governments can take to begin the healing process for our economy. Our representatives have a chance to start real change and real change is what is needed.

Todd Welch