| Here we are, in the midst of a presidential campaign, | | | | plans and other self-directed gambling devices that |
| trying to select a new leader for what is still the most | | | | have taken the place of defined benefit pension plans. |
| economically powerful nation on Earth. The candidates | | | | These benefits cut into cash salaries, profits, dividends, |
| are kissing all the babies they can get their palms on | | | | and jobs provided, but are thought to be worth the |
| and smiling until their cheek muscles ache; but will they | | | | costs in improved morale and retention. Mandating |
| be able to produce any of the changes they talk | | | | additional or involuntary benefits for employees will |
| about? Do we really want them to? | | | | either cut something or raise prices. Related issues |
| 90% of all Americans are investors and, as such, there | | | | that must be addressed if health care and/or insurance |
| are issues that we need to hear about from the man | | | | costs are ever to be brought under control: insurance |
| who would be king. None of our could-be leaders are | | | | fraud and tort reform. Known pre-existing conditions |
| addressing the issues that would allow us to achieve | | | | are not insurable risks that all insureds should pay for; |
| our financial goals. What we all want is to keep more | | | | they are a social welfare concern that must be dealt |
| of what we make, and then to spend it as we see fit. | | | | with by government agencies. |
| It's not clear how the candidates intend to help us. Is | | | | (6) Tort Reform. Lawsuit awards in all areas must be |
| investor enemy number one a tax, a budding foreign | | | | limited to amounts that are reasonable, and people |
| economy, a scarce commodity, the powerful | | | | must be held accountable for their own stupidity, |
| institutions, lobbyists, index funds, or the politicians | | | | irresponsibility, and clumsiness. Potential suits should be |
| themselves? | | | | reviewed and possibly arbitrated by non-lawyers |
| While the campaigns focus on social issues, they | | | | before going forward. If you spill hot coffee on your |
| purposely ignore the economic realities of their | | | | lap, be more careful next time. All costs, whether they |
| proposals. Politics and Economics are like oil and water; | | | | are insurance settlements or legal fees, find their way |
| they don't mix well, but both are necessities. The very | | | | into the prices we pay. It's just this simple, the deep |
| rich, and the corporations that spawn them, are the | | | | pockets are always our own. |
| biggest contributors to the foundations that fund social | | | | (7) Personal Income Tax Reform. Is it enough to say |
| change. Increasing their costs and raising their tax | | | | that we tax pension and other retirement income, |
| liabilities is not going to increase the numbers of jobs | | | | including the sacred pittance from Social Security. The |
| they provide or the number of dollars they contribute. | | | | income tax needs to be revised, reformed, or replaced |
| Investor enemy number one is an ideology, a class | | | | by something. Eliminating the tax on all forms of |
| distinction between the super-rich and the | | | | retirement and investment income, including capital |
| not-so-comfortable-yet. You don't help the middle class | | | | gains, rents, royalties, etc. would have incredible positive |
| by stealing from the creative and successful. You do | | | | effects (and would guarantee a Pennsylvania Avenue |
| so by increasing their "keep". | | | | address for eight years). The next administration could |
| Here's a list of candidates for the investor priority | | | | earn another eight years by combining the various Flat |
| number one title. What do you think, and/or what | | | | and Fair Tax proposals. That could double total tax |
| would you add? Please help me prepare a ranking that | | | | revenues, reduce price levels, create/save thousands |
| I can publish before the November elections. | | | | of jobs, and expand the economy. |
| (1) Social Security Reform. If I were to place $2,000 | | | | (8) Regulate The Regulators. Every scandal produces |
| per year in an investment vehicle with a guaranteed | | | | new levels of regulations and additional cadres of |
| interest rate of just 3% per year, I would: accumulate | | | | secret police who raise business costs in the name of |
| enough money to generate significantly more monthly | | | | compliance with da law. Countless hours of |
| income than that provided by Social Security, develop | | | | non-productive time are mandated by broad-brush |
| significant cash values for my heirs, and have more | | | | policies and procedural requirements that do little to |
| spending money to pump up the economy. Nothing | | | | protect the consumer--- in many cases they simply |
| need be risked in the stock market. My boss would be | | | | annoy the people they are supposed to assist. |
| able to hire additional workers, reduce prices, and | | | | Financial services firms, for example, employ |
| increase dividends to shareholders (you). We can keep | | | | thousands of people to protect the firm from the |
| him from buying a yacht. Thousands of new jobs | | | | examiners, not to protect the client from unscrupulous |
| would be created in an old industry and in supporting | | | | employees. I've heard similar stories of the abuse of |
| areas. | | | | power that seems to be SOP in most regulatory |
| (2) Corporate Income Tax Reform. Eliminating the | | | | agencies. |
| Corporate Income Tax without enriching obscenely | | | | (9) Change Exchange Traded Index Funds. Index |
| compensated executives could redistribute enormous | | | | ETFs have replaced plain vanilla mutual funds as the |
| amounts of spendable income to all employees, | | | | most popular form of speculation in the financial world |
| increase the likelihood of job growth in all businesses, | | | | today--- even more popular than sub-prime mortgage |
| reduce the costs of goods and services and, possibly, | | | | paper was just a few months ago, and with the same |
| their prices, and improve payouts to shareholders. It | | | | risks. These are glorified gambling mechanisms whose |
| would also reduce the amount of money spent | | | | price movements have little to do with the economics |
| frivolously for tax reasons alone. We can regulate the | | | | (or economies) of the companies inside. Stock prices |
| transition to make it produce these changes, and | | | | are pushed up by demand for the indices, not by their |
| possibly to reduce the need for offshore outsourcing. | | | | fundamentals. |
| (3) Control Obscene Executive Compensation. This is | | | | (10) Restore the Up-Tick Rule. The up-tick rule that |
| nothing short of grand theft shareholder, and a basic | | | | applied to short selling since 1929 was eliminated in July |
| source of the disrespect so richly deserved by many | | | | of 2007; the markets have been feeling the impact |
| of today's corporations. Here's a great opportunity for | | | | ever since. Theoretically, if not actually, unscrupulous |
| jobs in a new regulatory agency and for public | | | | persons could bring target companies to their financial |
| relations consultants. Arbitrary compensation limits | | | | knees for their own purposes. In the wake of the |
| would be set for all public companies, and cash only | | | | sub-prime mess, for example, it became difficult for |
| compensation would be allowed... no stock options, | | | | some companies involved to raise capital efficiently |
| unqualified pension benefits, deferred compensation, | | | | because of shorting tactics employed by hedge fund |
| vacation homes, golden parachutes, etc. Above a | | | | operators. |
| certain level, 75% of the excess compensation in any | | | | This is my short list for the presidential candidates. |
| form would be donated in cash to the executives' | | | | Where they stand on these issues will certainly |
| favorite charities (directly from his or her paycheck) | | | | influence our economic future. Which of these is most |
| but the donation would not be deductible from any | | | | important? I think that either Social Security Reform or |
| other taxes. | | | | the elimination of all taxes on retirement and |
| (4) Health Care Reform. Corporations provide health | | | | investment income would have the biggest and most |
| care benefits because it helps them attract and retain | | | | lasting impact. What do you think? Really, let me know |
| employees. The same is true of the 401(k) savings | | | | what you think. |