To whom it may concern,
My name is Carlos Arvizu Sr., I am a realtor with the Rancho South East Assoc. Board. I am considering running for Congress of the 34th District, which consist of Downey, parts of Bellflower, Lakewood, Norwalk, Montebello, Downtown Los Angeles, SouthGate, Huntington Park, Bell, Bell Gardens, and Maywood. This is for the 2010 Congressionnal bid.
I am a long term Realtor, and we need someone who wants to fight for Real Estate Interest and the well being of the average American, young and old, pre senior and senior citizens. Lets stop the erosion of our economic health.
That's why I want to run to help fix some of the problems we have been facing. I need your help and support. If you think some of these suggestions make sense to you, please help me get elected to help fix these problems. A common sense approach.
How to fix the Nations Financial Mess
To Solve this Problem;
Since we have a cash flow problem, let's start with the Banks themselves. To solve that problem is simple, yet complex, but there are a few things we can do to restore capital, one of the things we need to do is flood the banks with money, without getting the economy into more debt than it needs to.
How is the 64 million dollar question. One way is relatively simple, we need to change our way of thinking with the use of the tax laws and the regulatory bodies; (congress job) as well as, regulate the banking interest that banks pays its customers. So how do we do that:
1. Congress can use stimulus money by way of reducing or by eliminating the taxes from all passbook savings accounts, up to at least $150,000 per year on all personal income taxes with an increase each year, with a built in inflation factor, tied to the cost of living. This gives the American public an incentive to save.
2. Regulate the passbook savings rate that is paid to depositors money into the banks, this creates an additional incentive for consumers to Save money. The rate of interest can be as simple as using the 10 year treasury bond note rate as a bench mark, that is tied to the 52 weekly average of the 10 year Treasury Note, minus 1% point on all passbook savings accounts. What that does, is flood the banks with money. It is not in the best interest of the country for the government to give money to the banks directly by way of stimulus funds, just to horde it, it would be of greater benefit the American public to get a stimulus to save money. This will not only encourage the consumers to save but also give banks an incentive to lend, They can't horde it if it's not working capital. This forces them to lend. The Federal Government should not be in the business of owning the banks, this is not a way to go.
If you want to fix it, and create some stability in the market, you don't need to raise taxes, you don't have to give away hundreds of billions of dollars away like candy. We just need to Think. We need to raise the confidence of the American public and the real estate market; the stock market will fix itself by that confidence. We also need to stop listening to the doom and gloom news a little. The News is a self perpetuating attitude of doom and gloom, it won't go away like a head cold, unless you solve or fix the problem. We Need to really look at the problems and solve them, not add to them.
3. The Stimulus of $400 for individual taxpayers is really a token, that we can ill afford. You don't necessarily have to give away a tax credit to every working person of $400., while that may seem unpopular, and it's sure nice to get a few extra bucks in your pocket, however do the math, it's very costly. The Bush Administration did that very same thing, it gave 3 of those same token tax credits away and drove the debt up more than $150 billion dollars, that will take 2 generations at lease to live with that burden of debt, and it really didn't help. A Stimulus needs to be an incentive to create or keep existing Jobs.
An unemployed taxpayer doesn't pay taxes, it adds to the burden of debt.
4. Give American workers a shot in the arm, by giving them a tax deduction of interest for buying and financing a major big ticket item, such as major appliances, cars, planes, boats that are manufactured in America, (at lease made partially in the U.S. (That's a real incentive to create and keep jobs.) I am not saying to have a trade war, but for Americans to have a choice to help keeps their Jobs here in the U.S. or find themselves displaced in the future to foreign companies that now taking place and losing jobs here in the U.S. This is an Incentive Stimulus.
5. Reduce the Capital Gains tax to 5% (Remember this, taxes are non productive, more is less, less is more) Most people think that capital gains relief is for rich investors, that's far from the truth. Realize this, that most Americans who own a home, or the average person who is not a homeowner who has a 401k they invested in mutual funds, stocks or bonds or has a small apartment unit they own also that falls in that category. If you bought something 30 years ago, and need the money to pay hospital bills or nursing home care to provide for nursing home care and your taxed at 30% Federal and State, that wipes out most of your hard earned dollars along with inflation. Y you lose buying power, and if you need that for retirement purposes, inflation eroded much of that.
Having a Capital Gains tax of 5% federal government and 5% to the state does not takes away revenue, it actually adds to it by creating cash flow to the government in volumes by giving an incentive to sell and cash in paying a fairer tax, versus holding on forever, paying no capital gains taxes and passing it along to your heirs ,who get the stepped up basis. Paying very little, if none in capital gains taxes. This gives the average American the right to chose how and when to spend their proceeds on their long term investment, that actually helps the government with cash flow to help pay the running of the government and we have a healthy economy, which in the end helps circulate more money into the economy and as well as enrich the coffers of the United States Treasury. (More is Less, Less is More, something to think about!)
6. With regards to the current toxic loan problem that banks have on their books, pool those loans to a National Clearing House, and Lease those homes with an option to buy for renters, who want to own a home. Giving them a three year window to exercise the option to buy, these renters would have an opportunity to own and be a productive part of society. There of course would be conditions over that three year period, workable credit, deposit, and income sufficient to make a rental payment, that would at least make a non performing asset into a healthy performing asset that is at least bring in money each month.
That's a Win, Win, not only for the taxpayers, but also for the tenants and the economy. Common Sense approach to stabilizing the real estate market, and gradually increasing property values to stabilize the real estate market.
7. Have the lending institutions to continue to modifying their loans in their pipeline of delinquent loans. This will dry up the foreclosures on the market and stabilize the housing markets. Any bank receiving help from TARP monies need to help those who are in this mess that the banks and financial institutions help create this mess.
My name is Carlos R. Arvizu Sr, and I am planning on running for Congress for the 34th District. I want to thank you and the treasury department for getting me angry enough to at least help fix someone else from losing their home, even though I can't save mine. Thanks again.
Carlos R. Arvizu Sr.
562-755-3856
Downey, CA 90241
TheDon1950@aol.com
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