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A&W Launches Grassroots Campaign to Help Restore the Economy

March 23, 2009

By: Ken Greenberg

Proving that no challenge is too great, Austin & Williams has set in motion a national grassroots "Bring Back the Deduction" campaign, seeking to bring back the personal tax deduction for credit card, auto loan and personal loan interest.

So what's this deduction all about?
Prior to 1986, consumers were able to deduct interest on credit cards, auto loans and personal loans on their itemized income tax returns. Congress eliminated these deductions in the Tax Reform Act of 1986 believing it "encouraged people to spend...at the cost of savings."

Of course today consumer confidence is at an all time low, auto sales are down by almost six million vehicles from a year ago, and Congress needs us to resume spending. Without consumers and businesses, Congress will feel compelled to do all the spending, and it's just not possible! Think about it: how can Congress save the auto companies unless we're buying more cars?

The small stimulus checks Congress authorized last year, and the $8 a week we're currently saving in payroll deductions in the new stimulus bill, are simply not enough.

Will it work?
Bringing back the personal interest deduction subsidizes our spending, will help build consumer confidence and spur the economy. The only way to grow our economy is to buy things: the more we buy, the more manufacturers produce. People fill the jobs needed for production tasks and also to sell us things. The economy, in turn, grows.

Congress repealed the deduction in 1986 because they thought it worked too well: they felt Americans were spending too much money. If it worked before, it can work again.

Will it cost too much?
Unlike the mega-billions Congress has sent to AIG, Wall Street and the Banks – money that leaves the U.S. Treasury instantly – this deduction costs NOTHING unless people actually use it. The money stays in the Treasury until next April, when you'll either owe less tax or get a larger refund. It's actually far more cost effective than the other proposals floating around Washington today.

But aren't people already in over their heads?
Despite everything you read in the media, less than 17% of approved credit lines and credit cards are actually in use. Americans are managing their money pretty well. Sure, there are many living paycheck to paycheck, but the vast majority of Americans has plenty of available credit. Most are living within our means.

Why now?
Honestly, there's no better time than now. This deduction can – and will – make a difference. What we need is the support of Congress. The current economic stimulus actions that they're taking are not enough to get the job done; chances are America will end up with nothing to show but a massive Federal budget deficit and staggering National Debt.

Won't the Federal spending solve the problem?
No! It will actually make things worse. Congress has become expert at obfuscating the depth of the economic trouble the Country is in. They just can't seem to control spending.

Did you know that our National Debt is now more than $11,117,000,000?!? That's $11 Trillion – with a T – 12 zeroes!!! Interest on that debt cost the United States more than $412 Billion in 2008. Imagine: $412 Billion in interest EACH year! And it's going up with our new, bigger $1.75 Trillion deficit. (Next year, the National Debt will be $12.75 Trillion, so our interest expense will be higher, too.)

Think about this: $412 Billion – what we paid in interest on the National Debt last year alone – is in itself enough for a big stimulus package: if we didn't owe so much money, we'd have $412 Billion more to spend!

But the President announced he'll cut the deficit in half in four years...
That's Washington-speak for it's still a deficit and we're still adding to our National Debt. If the deficit it $1.75 Trillion now, and it somehow does get cut in half in four years, it will be an $875 Billion deficit four years from now. How much will it be in each year in between?

Imagine you spent $20,000 more every month than you had. $20,000 is your deficit. In five months, you would have outstanding debt of $100,000. You might very well be in over your head. If you announced to your family, "I'm cutting my monthly deficit in half in four years" how messed up would you be? Remember, you would still be in a deficit situation and you would continue to rack up debt that gets increasingly harder to pay off. That's precisely where the United States is right now. Yet, the media doesn't talk about it. Instead, they accommodate Washington and discuss only the deficit.

Can we really help solve the problem?
Yes. And all it takes is ONE CLICK.

Simply go to www.bringbackthededuction.org. Here, we've made it easy to tell Washington you think bringing back the personal interest deduction will encourage consumer spending and is a good idea: there are three pre-written letters available from the home page. That's right – we've already done the writing for you! Click the "Get your Opinion to Congress" button, fill in your name and address, and we'll automatically send a letter to every one of your Senators and Congressional Representatives - no matter what State you live in.

There's a special pre-written letter for small business, too (we haven't forgotten about you!) Click on the small business letter and in one-click we'll send it to your Senators & Congressional Representatives asking for their support in bringing bring back the 100% entertainment deduction – a big difference, especially considering that it sits at just 50% right now. Just one month ago nine Broadway shows closed in one week. Restaurants are hurting. Bringing back the 100% entertainment deduction – even for a brief time – will encourage businesses to entertain clients and prospects – resulting in more business. That's just what the economy needs!

Tell your friends, family and co-workers about this initiative. Email them a link to www.bringbackthededuction.org – or forward this article. Our one-click email works for everyone and anyone in all 50 states. Wherever you live, you can tell EVERYONE about www.bringbackthededuction.org and be part of our grassroots effort to get Congress to bring back these deductions and really stimulate the economy. All it takes is one click!

If enough of our elected officials in Washington hear from us, then together we can create REAL change that we can all BELIEVE in.

Remember, it only takes one click to let each of your Senators and Congressional Representatives know you want them to bring back the deduction for credit card, auto loan and personal loan interest. Simply visit www.bringbackthededuction.org and click the "Get your Opinion to Washington" button on the home page.