The back-patting by Congress and the White House over the proposed economic stimulus package ["Negotiators Grappling With Stimulus Plan; White House, Hill Strive to Maintain Bipartisanship," news story, Jan. 24] should be put in check by calling these "tax rebates" what they really are: tax loans. Unlike the checks issued in 2001, those proposed would not be part of a planned permanent tax cut and would thus have to be repaid by taxpayers (that is, us) sometime in the future.Mr. Ryan Fitzgerald, the author of the above letter, has it exactly right! Putting money, so-called "rebates," into the hands of the American people fails to address the multiple causes of the present economic crisis.
Encouraging us to spend these "rebates" quickly instead of saving the money to pay off this tax loan is shortsighted. That behavior would lead to a quick economic high and then a deep low. It would be like abolishing paycheck tax withholdings and telling folks to spend the money as it comes in and deal with the tax bill when it arrives.
Today's plan may work to boost lawmakers' images in the short term, but it is merely a sham to those of us who will still be paying taxes once those public servants leave office.
And it is a crisis. The subprime mortgage crisis, Americans' penchant to spend over 100% of what they earn (via easy credit and other overspending), and the outsourcing of American industry cannot be solved by a one-time Congressional measure. In fact, the economic-stimulus package is like putting a bandaid on an arterial rupture and provides only short-lived relief:
4 comments:
anytime the govy lets taxpayers keep their OWN money it's good.
that non-taxpayers get some is not so good, but the cost of compromise.
lowering taxes is always good tonic.
Reliapundit,
Oh, don't misunderstand me! I am one of the strongest advocates of lowering taxes. I'm self-employed and pay through the nose. And my husband just lost his job--along with our health insurance.
We're in a serious bind here.
But I see this package as socialism--a government handout when the non-taxpayers get the bucks.
It won't do anything to solve the source of this economic mess. We need more than "a tonic."
Every dime of our "rebate" will go for health insurance and/or to pay estimated taxes. What kind of economic stimulus is THAT?
And I know many others in the same situation.
I AGREE SOMEWHAT...
the real tonic our economy needs is cheaper energy.
which we can get the day congress approves oil drilling in ANWR and off the coasts of CA and FLA.
and also expedites the construction of a dozen coal power plants and nuclear power plants.
oil will drop 20% in a day.
Yes, energy independence is crucial.
Why aren't our so-called leaders moving in that direction?
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