Prescient?

In a blog I wrote on Oct. 1, 2008, I stated that the US should place a moratorium on Capital Gains Taxes in order to stimulate the Economy, instead of giving away $700 billion. In this Wall Street Journal article by Rush Limbaugh, he essentially states the same thing but also adds the caveat that the Corporate Tax Rate should be cut too. In another blog entry on Oct. 15, 2008, I copied an article entry from the Tax Policy Center that the Corporate Tax Rate should be cut, from 35% to 25%, to put it in line with the European average tax rate.

As long as the Federal Government continues to bail out industries by taking our tax dollars and giving them away, there will be no moral hazards in our financial system and the problem will exacerbate because of the larger correction that will need to take place in order to fix the market. When Investors resume investing, our market will begin the repair process and eventually we'll witness growth. My greatest fear is that the Government doesn't stop this reckless "Economic Stimulus" behavior and we'll be forever indebted to foreigners who are the ones that pick up our tab by buying our Treasury Bills.