Pasadena Chamber of Commerce

Two wars overseas. Our country’s reputation and standing worldwide is faltering.

Most immediately for all of us, the economy may be a very long, very painful challenge.

U.S. economy may sputter for years

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Reporting from Washington — Transfixed by the daily spectacle of dismal economic news and wild Wall Street swings, few Americans have looked up to see what a wide array of economists say lies beyond the immediate crisis.

And with good reason: The picture isn’t pretty.

There are some interesting ideas out there, including this one from the LA Times’ George Skelton:

From Sacramento — President-elect Barack Obama says he is open to new ideas about how to stimulate the economy. I heard him say it on TV.

So here’s an idea for cranking up cash registers while also helping to bail out California’s virtually bankrupt state government.

It’s not a new idea by any stretch. It’s an oldie, but one that makes sense to replay:

Simply restore the pre-1986 law that allowed all Americans who itemize on federal income tax forms to deduct their sales taxes. That, in turn, would help ease the pain in California of a virtually certain state sales tax increase.

Currently, federal taxpayers may choose either the state income tax or the sales tax, but they can’t deduct both. They could prior to a tax “reform” signed by President Reagan.

I’m in favor of sending a significant portion of that $350 billion in stimulus money to support small business on the local level. Let’s support the people who really are the bedrock of our economy.

Paul