I propose a thirty day long term capital gains tax holiday on money brought into the country by anyone willing to invest it in either U. S. Treasury Bills, a U. S. owned corporation in the stock market, or in U. S. mortgage backed securities. One catch: no more than 20% per year can be taken out without having the short term capital gains tax rate doubles as a penalty, perhaps less on the long term securities.
Americans hold unknown billions of dollars in offshore accounts hidden from our own Federal Internal Revenue Service because they don’t want to pay the taxes. This money represents enough of the solutions to our economic problems to put this country back in the black.
The first argument against opening a tax free window is the government loses all that tax revenue. But they are not getting it anyway. If we get the money into the country somehow, we eventually get the tax revenue on the money it makes. That figure could be very large.
The second argument will be the risk of upsetting all those rich Swiss bankers and others who have been adding to their wealth for decades while proudly hiding money from our government. Personally I’m more concerned about Americans who can’t find jobs.
The upside would be a jump in the stock market like we’ve never seen, money available allow homeowners facing foreclosure to refinance their homes (regardless of the loan to value ratios) at current, low rates, thus stopping the foreclosure explosion. And the U. S. maybe even pays off China. It’s a win-win-win, unless you are an international banker making your money by protecting money launderers, drug cartels, and tax dodgers.
Tho only real problem is, neither political party will let the other one solve all our problems.
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