How to create jobs

Unemployment levels are still high at 8.6% and the government should consider how it might facilitate the creation of new jobs given the present political environment. Republicans believe that one should not tax the rich because they are the ones who create jobs. I suggest we put this to the test. The government should consider letting the rich invest in new businesses and allow them to write off the startup losses for say five years against their ordinary income. Currently such losses are considered passive losses and may be written off only against subsequent passive income.

There is no logic in taxing dividends at less than ordinary income rates. Why should society value a person's labor at less than his/her money? To avoid double taxation, paid dividends should not be taxed on corporation income. If dividends were taxed at ordinary income levels, there would be more incentive for rich to invest--given the incentive of the first paragraph--without increasing the tax rates.