Buy WILLisms

XML Feed
WILLisms.com on Twitter

Featured Entries

The Babe Theory Of Political Movements.
Mar. 21, 2005 11:50 AM

Iran's Sham Election In Houston.
June 20, 2005 5:36 AM

Yes, Kanye, Bush Does Care.
Oct. 31, 2005 12:41 AM

Health Care vs. Wealth Care.
Nov. 23, 2005 3:28 PM

Americans Voting With Their Feet.
Nov. 30, 2005 1:33 PM

Idea Majorities Matter.
May 12, 2006 6:15 PM

Twilight Zone Economics.
Oct. 17, 2006 12:30 AM

The "Shrinking" Middle Class.
Dec. 13, 2006 1:01 PM

From Ashes, GOP Opportunities.
Dec. 18, 2006 6:37 PM

Battle Between Entitlements & Pork.
Dec. 21, 2006 12:31 PM

Let Economic Freedom Reign.
Dec. 22, 2006 10:22 PM

Biggest Health Care Moment In Decades.
July 25, 2007 4:32 PM

Unions Antithetical to Liberty.
May 28, 2008 11:12 PM

Right To Work States Rock.
June 9, 2008 12:25 PM



Blogroll Me!



April 2009
March 2009
February 2009
January 2009
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005
April 2005
March 2005
February 2005
January 2005
December 2004

Social Security Reform Thursday.
January 29, 2008

Caption Contest
Jan. 21, 2009

The Carnival Of Classiness.
Mar. 14, 2006

Quotational Therapy: Obama.
Apr. 4, 2008

Mainstream Melee: Wolfowitz.
May 19, 2007

Pundit Roundtable: Leaks.
July 9, 2006

A WILLisms.com(ic), by Ken McCracken
July 14, 2006


Powered by Movable Type 3.17
Site Design by Sekimori

WILLisms.com January 2009 Book of the Month (certified classy):

The WILLisms.com Gift Shop: Support This Site


This Week's Carnival of Revolutions: carnivalbutton.gif

Carnival Home Base: homebase.gif


« Follow WILLisms.com on Twitter... | WILLisms.com | Trivia Tidbit of the Day: Part 523 -- Mandatory Spending Outpaces Discretionary, BIGTIME. »

Trivia Tidbit of the Day: Part 522 -- Conservative Stimulus Alternatives.

We Can't Simply Be Against Bailouts, We Must Have Our Own Good Ideas As Well-

Recent history provides an important lesson for politicians on how to stimulate the economy. In 2004, America tried out a very short-term experiment. We drastically lowered the corporate tax on repatriated profits (money made overseas and brought back to the United States for reinvestment or shareholder disbursement) from 35% to 5.25%. Because conservative Republicans were only marginally in charge of government at the time, the change was VERY temporary.

We've discussed the results of this temporary change before, in a post in November of 2006. Essentially, it encouraged hundreds of billions of dollars to flow back into the United States.

And it went toward good and productive purposes:

In order to motivate businesses to bring this money back to the U.S., the new administration and Congress should consider legislation similar to a bipartisan 2004 law, The American Jobs Creation Act. This law incentivized U.S. businesses to bring $360 billion of foreign subsidiary earnings back into the U.S. at a reduced corporate tax rate of 5.25% for one year. A survey of several hundred of these companies found that they used, on average, 25% of those funds for U.S. capital investment, 23% for hiring and training of U.S. employees, 14% for U.S.-based R&D, and 13% for U.S. debt reduction.

But then it went away.

Instead of spending trillions on top of trillions on permanent expansions of government, why not try this out.

It will inject hundreds of billions of dollars into the U.S. economy over the next few years:

Temporarily reinstating the dividends-received-deduction for repatriated foreign subsidiary earnings leads to significantly higher corporate cash flow, increased capital expenditures including R&D, improved business financial conditions, more jobs at nonfinancial corporations and at financial institutions, and a significant increase in real economic activity.

Any increase of inflation is negligible, 0.1 percentage points, but there is a sizeable decline in the unemployment rate, although with lags, of 0.5 percentage points.

Two major problems of the current situation are addressed: some relief to business in a credit- and liquidity-constrained environment that is holding back business spending and contributing to a rise of unemployment. The improvement in business financial conditions sets the stage for more hiring later on by enhancing the liquidity and financial position of nonfinancial corporations. Thus, both current problems of tight credit and jobs are helped by the program.

So, this is one alternative. We Republicans have lots of alternatives. Frankly, doing nothing would probably be better than kicking this crisis' can down the road a bit. If we have to "DO SOMETHING!!!!!", we should explore ways to jump-start our economy through pro-growth policies.


Previous Trivia Tidbit: Texas Created Jobs In 2008.

Posted by Will Franklin · 28 January 2009 02:37 PM