Averting Economic Crisis

July 21, 2008

Averting Economic Crisis
By T.S. Khanna


The taxation policies proposed by the Democrats and Republicans to improve economy are oriented to serve the party interest, not the public interest. To avert further economic crisis, some quick steps are recommended:

1. Revive the automobile industry by tapping the oil reserves and exploring all potential sources of oil. Bring down the gas price to $ 2.00/gallon by neutralizing the speculators. The demand for oil has increased only 2% but the price increase is 400%;
2. Raise the interest rate to control inflation, strengthen the dollar, invite foreign investments, take whatever steps necessary to bring back the lost jobs to shore up the capacity of people to keep up with their mortgage commitments;
3. Suspend property tax of homes for two years;
4. Suspend federal and state taxes on the first ten thousand dollars income/year;
5. Suspend voting rights of those who do not pay income tax to encourage people to activate the positive economic process before participating in the negative political process, (Amend Constitution);
6. Establish a Fair Wages Commission with powers of binding decisions both on the management and the workers unions, to protect the workers’ exploitation by the management and to protect the economy from being high-jacked by the unions, (Amend Constitution);
7. Give special recognition to those who pay $ 100,000 or more/year as federal tax;
8. Avert lay offs by reducing top heavy expenses of organizations by setting a precedent of 20% cut in salaries and perks of all elected officials and public employees;
9. Eliminate all tax loopholes and adopt a fixed rate federal income tax of 20%.
10. The Congress and the President must cooperate and act NOW.