...on one condition. Make it adhere to PAYGO.
We need to be Fiscally Responsible. Hence Pay-As-You-Go. We should support the Bailout if and only if it is bundled with tax increases to cover it:
- Income taxes on earners over $250k
- Social Security and Payroll taxes should have their caps raised (but rates kept constant)
- Capital Gains taxes should also be raised. Rather than complicated, doomed-to-fail schemes involving taxpayers getting "equity upside", we'll take our upside off the top, thank you.
I believe that spending $700 billion on junk mortgages might be a good investment. Most of the mortgages will eventually be paid off. If we get the securities at a low price, it will be fine.
$700 Billion averages out to about $7,000 for each American family. The bill should be sent directly to the wealthiest, who have captured nearly all of the benefit from the recent years. If and when the mortgage bonds pay off, we can consider rescinding the tax hikes.
Pay as you go!