photo by *Cindy*
Written by Nathan White, Paragon’s Chief Investment Officer
The President is going on another of his “grand” stages tonight with his jobs speech before Congress. I keep hoping, praying, and wishing that the President will finally pull a “Clinton” and present some real structural solutions to help the economy. Anything less will be very disappointing and now that most of the points seemed to have come out ahead of tonight it seems like we are just going to get more of the same stimulus that we’ve already got. More style than substance. The economy and markets are so starved for certainty at this point.
Clinton got it. He moved to the center and co-opted Republicans ideas and then got the credit (and deservedly so) as the economy soared. Our current President seems to have no inclination to do the same – yet. Self-preservation is a powerful motivation and the President’s time is pretty much up. One of the problems is that the President doesn’t have the same quality of advisors (including those from the private sector) that Clinton had.
I believe the answer to the President’s problems is right before him and all he has to do is reach out and grab it and the economy will take off – move to the center!
Here’s some of my views on what could or should be proposed and the probabilities of being proposed:
High Probability (Low Impact):
- High Payroll tax cut extension (yawn)
- Temporary tax credits for hiring (again, enough with temporary!)
- Infrastructure bank/spending (OK)
Low Probability (High Impact)
- Removal of the repatriation tax on foreign corporate earnings – an absolute no brainer that continues to mystify me why it isn’t done.
- Dramatic approach addressing the housing situation
- Structural tax reform
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