Obama to call for extended pay Roll tax

Along with tax cuts for employees and employers, it is desirable to introduce some tax incentives for savings.Economic security should precede social security and there should be some measures to aim for economic stability. The Government can think of creating a fund 'Economic Stabilisation Fund' by mobilising funds from all segments of the economy. There can be two parts for this fund ie Refundable and Non-refundable. The country has billionaires,millionaires, and large multi-national corporations with lots of wealth in the form of gold, real estates, huge reserves and cash balances. By providing some incentives , the Government should be in a position to attract a small portion of these resources either on a refundable or non-refundable basis. The economic recovery is in the interest of all and there should not be any hesitation to come forward to contribute. The Govt can also consider introducing some levies in the form of Speculation tax on large deals in forex, capital market, commodity market and others, greed tax on casinos and other gambling areas, luxury tax for owning and operating very high end cars more than two and aircrafts, extravaganza tax on consumption, entertainment, marriage, festivals etc. USA has all the resources, talent, expertise and skill and the present situation is only a temporary upset which can be easily overcome without much fuss. The political bickerings need to be kept aside and efforts should be made only on economic recovery.
Dr.T.V.Gopalakrishnan
(This appeared in ET Epaper dt/7/09/11