TED Conversations

Paul Ruth

This conversation is closed.

Use the tax deductions system to spur economic groth, and this is not just another tax cut idea.

I would like to share an idea I had to one, help resort the government budget, and two, to increase economic activity. I have entitled my idea The Non-Profit Employment Incentive: It is outlined in brief below.

The basic concept is for profit businesses large to small, to help employ people who they may lay off, or those who need a job through non-profits. The system would work just like the donation program for tax deductions and so on, only these donations would go specifically to employ people at non-profits. So if company A donates $1 million to a non-profit to hire 20 people for a year, then they would get a tax deduction, and/or reduce liability, and so on.

The two major benefits to this program would be increased employment and economic stability, and increases tax revenue without having to raise taxes. When someone is employed that salary is spent 5 to 7 times in the economy, which also means that tax revenue would be 5 to 7 greater for that money. This should spur economic growth, and make downturns less painful in the future.


Showing single comment thread. View the full conversation.

  • thumb
    Mar 29 2011: All I have left to say is that this is the reason why the last recession happen. People like this walk around with their eyes closed and fail to anything about it. Just keep carring on like nothing happened, adn we should keep things as normal.

    The Glass Steagall act was repealed in 1999, which mean the regulation was taken away, one reason for the crash. Know you history better!!!!!
    • thumb
      Mar 29 2011: sorry for not being a mind reader and not knowing US legal history, being a hungarian. repeal of that specific law changes nothing, the fdic still exists, and backed up by federal budget. repealing the GS law is only a minor tweaking. the US has no free banking system, and not only for this reason.

      has ever occurred to you that maybe you are the one that walk with eyes closed?

Showing single comment thread. View the full conversation.