Mr. Greenspan is being cajoled to foster impoverished thinking, I can see why he may be inclined to surrender to that school of thought, but seeing is not believing. Greenspan suggests eliminating the Bush era tax cuts. Granted, nothing last forever, but why rush? The downside to a poorly planned endeavor is sloppy execution.

If government waits until corporate profits have regained their full strength before attempting the roll back on personal income tax cuts on the wealthy, while keeping taxes sustainably low for corporations, thereby forcing high income earners –who now benefit from these tax cuts– to then avoid the capital gains tax and leave their money in corporate coffers long enough for those corporations to hire more staff, an economic growth surge will ensue. In other words, keep the tax cuts in effect until corporate profits significantly improve and employment improves.

As consumer demand increases, an across the board tax hike could be sustained by both the consumer and the financial markets. Corporations, while at a lower corporate tax rate, will not feel pressured to issue dividends and the added earnings can help to steam roll the recovery within a 3 to 6 year time span. At which time, an increase in the corporate tax rate coupled with a slight reduction of the rates on high income earners would increase overall tax collection, as the wealthy begin to exercise their stock options at a lower tax rate.

The president announced a 3.8 trillion dollar budget for fiscal year 2011.

Now take a pause and allow your mind to comprehend what you just read, 3.8 trillion dollars. The plan is to create new jobs and “invest in the economy,” the government is basically going to spend its way out of recession.