When the economy is good, banks have money to lend and can pay interest rates better than the rate of inflation. With most banks paying less than 1 percent, two out of three (liquid and safe) are not good. The worst part is that the IRS will collect 15 percent of those earnings if your income is $16,701 to $67,700, or 25 percent if it's more than $67,700. Congress needs to propose there be no tax on interest earnings up to the rate of inflation. In that case, people would probably put more into interest-bearing accounts. The lenders would have more to lend to small businesses and homebuyers, kick-starting the economy. Now that's three out of three. Tom Kelly Lady's Island
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