Thursday, January 28, 2010
Dear Mr. President
Want to help the middle class?
Bring back credit card interest
Eliminated by Ronald Reagan
Read President Barack Obama wants to help the middle class. First, he can start by righting a wrong done by Ronald Reagan while he was president, which was roughly a quarter of a century ago.
During his two terms, Ronald Reagan granted amnesty to illegal aliens, which lead to today's problem in that realm. Ronald Reagan allowed banks to trade securities, which lead to bank failures going on now. Ronald Reagan abandoned an energy plan put in place by Jimmy Carter, which lead to today's energy crisis.
Also passed by Reagan was the Tax Reform Act of 1986 that eliminated writing credit card interest off your taxes.
It is my belief if President Obama re-instated this benefit, it would help the economy. People would go out and buy things, realizing the interest they are paying is like a home mortgage - deductible.
Sure there are fools who will misuse credit and spend wildly. There's fools who misuse liquor and get DUIs. There's fools who buy too much of a home and when the economy gets bad can't afford the payments. Credit card companies could set sensible limits, like $5,000 per family.