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Another Political Circus or Actual Progress?

American's Job Act:
- Creating Jobs for Construction Workers, Teachers, and Long-Term Unemployed
- Tax break for companies who hire new workers and payroll tax cutes
- Work to rebuild America's roads, bridges, and airports. He mentions China which is building newer airports and faster railways. "There's a bridge that needs repair between Ohio and Kentucky that's on one of the busiest trucking routes in North America. A public transit project in Houston that will help clear up one of the worst areas of traffic in the country."
- Repair and modernize at least 35,000 schools with emergency repairs, new technology and labs.
- Cut red tape that prevents construction projects from starting quickly.
- Extra tax credits if they hire America's veterans
- "$4,000 tax credit if they hire anyone who has spent more than six months looking for a job."
- "typical working family will get a fifteen hundred dollar tax cut next year"
- states "week from Monday, I'll be releasing a more ambitious deficit plan" to "increase that amount so that it covers the full cost of the American Job Act"
- Raise taxes on the riches Americans - uses Warren Buffet's "I pay a lower tax rate than my secretary"
- Adjustments to Medicare and Medicaid
- This one doesn't make sense to me - Please help.
"I'll also offer ideas to reform a corporate tax code that stands as a monument to special interest influence in Washington. By eliminating pages of loopholes and deductions, we can lower one of the highest corporate tax rates in the world. Our tax code shouldn't give an advantage to companies that
can afford the best-connected lobbyists."
- Contracts with government spending will get paid faster
- Cut red tape for start-up for raising capital and going public.
- Help refinancing at near 4% rates and put "more than $2,000 a year in a family's pocker"
- Sights selling products in Panama, Colombia, and South Korea and "Made in America"
Investing Ideas:
Construction Companies:
- Transportation Focused - It's odd that he didn't mention a thing about Clean Energy since his election had an important theme regarding this topic.
How does one profit off the money going into education at the public level?
Tax Cuts
Inflation Pressures - Good for precious metals, but growth will have to outpace money growth at sometime otherwise the US dollar will continue to devalue costing our largest debt holders to no longer want US debt. If no one is paying for the increase in money supply, unless its the American economy monotinizing its own debt, then there will become a shortage and larger issues.
More money in Middle Class compared to Wealthy
Consumer Durables will likely benefit such as Walmart. I sense there might be a correlation in the demand for consumer goods, their profits, and the tax rate on the middle / lower class.
Questions Are:
Will Congress accept this act?
Probably not, because they continue to act like a stubborn child.
What will the media say?
All will focus on his reelection versus the potential effects of the proposals being put on the table.
How will markets react?
I view this as a positive event because there would be in inflow of cash as well as a greater potential for growing businesses. Some of the most influential business started off small and grew quickly and with tremendous influence which caused others to florish and so on. Microsoft to the computer industry, Yahoo to the Internet, Google to the search. I'm going to stop in the middle of that sentences because I think my assumption is wrong. All those examples are related to technology companies. I cannot think of a company which rapidly expanded such as these at such a fast pace and influential power. Yes there are companies which continue to grow and prosper such as GE, Deere, Wal-Mart and so on, but all of these companies began at a very different starting point and without the ability to rapidly expand. This will have to be revisited at a later time.
I have no expectation of how the market react in the short-term because this plan will have to go through Congress and the deficit reduction plan must be analysis next Monday.
I added the speech transcript and my notes to the speech on SkyDrive. I'd like the same from you guys when you have time. Thanks.
Different Perspectives
Different Perspectives