An Alternative Bailout Proposal

As sent to me by Robin Yassin-Kassab:

Now here’s a bail out plan that works! I’m against the $85,000,000,000.00 bailout of AIG. Instead, I’m in favor of giving $85,000,000,000 to America in a “We Deserve It Dividend”.

To make the math simple, let’s assume there are 200,000,000 bonafide U.S. Citizens 18+. Our population is about 301,000,000 ± counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up.

Divide 200 million adults + into $85 billon; that equals $425,000. My plan is to give $425,000 to every U.S. citizen age 18+ as a “We Deserve It Dividend”.

Of course, it would NOT be tax free. So let’s assume a tax rate of 30%. Every individual 18+ has to pay $127,500 in taxes. That sends $25,500,000,000 right back to Uncle Sam. But it means that every American adult has $297,500.00 in his /her pocket. A husband and wife have $595,000.

What would you do with $297,500 – $595,000 in your family?

  • Pay off your mortgage – housing crisis solved.
  • Repay college loans – what a great boost to new grads.
  • Put away money for college – it’ll be there.
  • Save in a bank – create money to loan to entrepreneurs.
  • Buy a new, fuel efficient car – create jobs & reduce emissions.
  • Invest in the market – capital drives growth.
  • Pay for your parent’s medical insurance – health care improves.

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back.

And of course, for those serving in our Armed Forces. If we’re going to re-distribute wealth let’s really do it … instead of trickling out a puny $1000 (“vote buy”) economic incentive that is being proposed by one of our candidates for President.

If we’re going to do an $85 billion bailout, let’s bail out every adult American! As for AIG – liquidate it. Sell off its parts. Let American General go back to being American General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up. Here’s my rationale. We deserve it and AIG doesn’t. Sure it’s a crazy idea that can “never work.” But can you imagine the Coast-To-Coast Block Party! How do you spell Economic Boom? I trust my fellow adult Americans to know how to use the $85 Billion “We Deserve It Dividend” more than I do the geniuses on Wall Street or in Washington DC. And remember, this plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

You don’t want to even hear what I think about the stupid mortgage companies that loaned out billions of dollars to people who they knew had no way of paying back the loans, with both sides of the equation interested in one thing … fast money. But it didn’t work, and now we’re supposed to bail out those idiots too???

Kindest personal regards,
Bill

I am not sure I see the point in giving billions away only to have part of it returned to the government in taxes: just give out the after-tax amount, I think. However, the basic principle is sound: rather than bail out financial institutions who invested in bad mortgages, how about giving homeowners a boost so the “bad” mortgages are no longer “bad”?

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