Economic Policy Recommendations 

August 19, 2008

The Honorable Charles B. Rangel
Chairman of the Ways and Means Committee
United States House of Representatives

Subject: Economic Policy Recommendations

Dear Mr. Chairman,

On Thursday August 7, 2008, at your New York Headquarters, you gave me the opportunity to expand on my June 28th address on Independence Mall in Philadelphia. In your office we discussed energy imperialism, criminal lending practices, and the magnitude of the financial crisis. The plight of the rural and urban have-nots aggravated by these crises was placed into focus.

The American Housing Rescue and Foreclosure Prevention Act do not address the need to reduce the principal obligation on modest dwellings that were artificially inflated by modern day loan sharks. The eviction of victims of fraudulent lending practices must be stopped. Financial institutions should be directed to refinance median value homes at 15 percent below current market valuation. In turn, those holding such financial instruments should be entitled to all appreciation at the time of sale of such properties. On the other hand, those enabled to remain in their current homes should be compelled to keep their homes in good condition. Enacting such legislation would preserve our neighborhoods and the dignities of the victims of fraudulent lending practices.

The thrust of my energy policy recommendation calls for the reimbursement of commuting expanses by corporations without any impact on taxable earnings; a timely increase of the baseline federal minimum wage to $10 per hour and subsequent indexing for inflation; the imposition of a substantial duty on imported crude to protect and accelerate alternate energy source development in Continental North America. Shale oil extraction, coal liquefaction, renewable organic resources, and offshore drilling should be all kept on the table. It is important to note here that past minimum wage policies are rooted in greed and macro-economic myth. Demand driven inflation cannot be resolved on the backs of the rural and urban poor. A living wage policy is good business and it is a matter of national security.

I further recommend that credit card interest rates be capped at twice the prime rate including fees and penalties. Imposing a countervailing duty on Chinese imports is an imperative to protect the value of the US dollar unless China agrees to float the Yuan. There should be no ceiling on payroll tax withholding but retirement benefits should be capped at middle-class wage levels indexed for inflation. Corporations should equally match payroll tax withholdings without any wage caps. Eliminating the cap on wages subject to payroll taxes would create an even handed approach to increasing tax revenues and create a de facto baseline flat tax. Reductions in corporate income taxes should be considered to offset the associated corporate payroll tax burden. Past attempts at privatizing Social Security – in part or in whole – are sheer nonsense. The social safety net must be funded from current accounts. Investments of public funds would distort the capital markets and induce increased volatility.

Most of us realize that our country’s infrastructure has been destroyed by excessive deregulation and mismanagement. The insurance companies, banks, transportation and energy providers must be regulated without any further delay. The current account deficit cannot be fixed through the destruction of the dollar. We must make real, but even handed sacrifices before it’s too late. Multinational corporations must be curtailed from acting as arrogant sovereign countries.

Very Truly Yours,

Robert J.S. Haris
Senior Vice President
Strategic Marketing and Planning
RTD Embedded Technologies, Inc.