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Jobs Creation Policies

As a Kerry contributor who feels little access, I offer to you for consideration adding the three following economic policy proposals to the Kerry Platform:
 
1.  Waive 1031 like-kind reinvestment requirements, if the capital gains are placed in net-new jobs creating investments. 
 
1031 currently requires that someone who sells a business in a dying industry must reinvest in the same dying industry to avoid capital gains taxes.  Capital should be allowed to go to its highest and best use.  Tax law should promote job creation; not inhibit it. 
 
The impact would be in the 100's of billions of dollars steered into new job creating investments.
 
2.  Reward exports by awarding each dollar of exports with 1.2 coupons.  Each dollar of imports should require one coupon.  This would put importers and the foreign suppliers in the position of helping to balance our trade. 
 
This is not mercantilism because every country should adopt this program.  Balancing exports would create millions of jobs. 
 
3.  Require that all laws, regulations and tax proposals be job scored by the Congress and the agencies before debate and comment.  Job scoring means estimating how many,  what kind, and the location of jobs that would be created or destroyed by legislative and regulatory proposals.
 
Such job scoring is typically done by defense contractors, when bidding on multi-billion dollar projects.  (I did it for the Litton Ship Systems DD-963 destroyer proposal and I provided the McGovern campaign a similar set of estimates for the projected Peace Dividend.)  

Clifford W. Lazar

Los Angeles, CA USA

24 July 2004                                          email a Comment

Comments and responses:

Interesting ideas.  I started a blog (http://russabbott.blogspot.com), which has a variety of topics.
 
The first idea makes lots of sense.
 
I'm not so convinced about the second idea.  It sounds like a general tariff plus an export subsidy.  The coupons exporters get are not worth anything except to importers.  (Or am I missing something.)  So it's really a tax on importers who have to buy coupons to pay it. That will raise the price of imports. Exporters can sell their coupons, enabling them to reduce their prices.

Because I set the ratio at 1.2, if trade is in balance, the coupon price will be low, because there will be a surplus of coupons.  The more imports exceed exports, the higher the price of the coupons -- a homeostatic system.
 
The third idea may or may not be feasible, and it may be too easily gamed.  Can you really predict job creation and destruction?  What about off-shore consequences?
 
The objective is to promote job creation.  A debate about the methodology won't hurt the objective.
 
-- Russ                      Cliff

Job Creation Kerry Economics

Job Creation Kerry Economics

                              

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