The Daschle Tax Plan

As we hear the news of President Obama's cabinet nominees dropping like flies because of tax problems, I can't help but laugh at the hypocrisy of these liberal policy makers. For the past few years Tom Daschle, and I'm sure Nancy Killefer included, have been railing on President Bush and the Republicans for the tax cuts that were made law early in Bush's administration. These are the same people who have been advocating for a tax increase on those making over $250,000 a year and reversing many other aspects of the Bush tax cuts.

As we are now finding out, many top democrats have adopted a tax plan that they think should apply to them, while we, ordinary hard working Americans, continue to bear the burden of a congress that appears to have no concept of fiscal restraint. So what is this special tax plan the democrats have adopted? It's called the "Everyone Has to Pay Tax Except Me" plan. We know that Tom Daschle has failed to pay roughly $146,000 in back taxes, and Nancy Killefer quickly removed herself from consideration for the Chief Performance Officer position citing tax problems. Tim Geithner, the new Treasury Secretary, also faced grilling from members of congress during his confirmation hearing over his failure to pay his taxes. That is a novel concept - put a man who does not pay his taxes over the very agency that is charged with collecting the tax revenue for our government.

So after much consideration, I have decided that President Bush had a much better tax plan for America. A tax plan that lowers taxes has shown that it will stimulate the economy by leaving more of our hard earned dollars in our pockets for us to spend, while at the same time increasing revenue for the government. In addition to cutting marginal tax rates, cuts in capital gains rates, lowering taxes on dividends, and accelerating depreciation deductions for property, plant and equipment purchases will help give any economy a kick in the rear end and get it moving in the right direction at a faster pace.

However, if all else fails, I can always adopt the Daschle tax plan and just not pay my taxes. By doing that, I will have the additional capital to invest in the stock market or invest in any of my businesses and help create new jobs. Either way, I come out ahead and the economy comes out a big winner!

Utah's Struggling Housing Market

Since reaching its peak, in terms of average sales price and units sold, the housing market in Utah has gradually fallen off its highs of a couple of years ago. In light of this slowdown, it's quite remarkable how home prices have held up even as the slowdown worsens. However, according to Mark Knold, a senior economist for the Utah Department of Workforce Services, stated that Utah's housing market may still be in for the worst.

In noting that Utah trailed behind much of the country in the housing run up, Mr. Knold believes that Utah is trailing much of the country in feeling the effects of the housing crisis. I concur with Mr. Knold's analysis and also believe that Utah's residential real estate market won't stabilize until home prices fall an additional 10-15%. Although I am no expert on real estate, I would venture to say that the stabilization won't occur until late 2009. Noticeable growth in the housing sector will probably follow in 2010.

According to Mr. Knold, one positive for Utah's housing sector is the fact that Utah does not have mounds of finished, unoccupied homes, like many other cities and States across the U.S. Because there is not a glut of inventory, Utah should be quick to recover when the stabilization occurs.

I think I can speak collectively for all business owners in saying that the housing crisis cannot come to an end soon enough. The impact of the housing crisis is felt through almost every sector of our economy. Obviously, a large part of the construction industry lives and dies by the success or demise of the housing market. When the construction industry is suffering, retailers, restaurants, and trucking companies also feel the effects.

Even though it may seem like the sky is falling down all around us, Mr. Knold offers some hope that the Utah housing market will rebound in coming months. We should all be optimistic and hopeful that we will see improved economic growth by next year.