[lazar_developments_heading.htm]
Thoughts in Public Policy
visitors
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:
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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