I don’t know how one would classify me in the realm of economics, and it is certainly not my strong suit. But based on 39 years of experience paying taxes and acting like a normal human being when something is taxed versus not-taxed… I have a pretty good idea of how to spend the $150 Billion that Bush & Congress are talking about.
Forget the $800.00 check for most Americans. It is fine for lower- and lower-middle class, don’t get me wrong. But I’d gladly give up my $800.00 if Congress would use the money for more strategic economic and security projects.
Call it my “Kill Many Birds With One Stone” Economic Plan:
Fine, cut a check for $800 to those who would best benefit from it and were likely to put it back into the economy.
Have most of the rest of Federal money specifically targeted toward energy independence construction — ANWR development, refinery construction, nuclear plant construction, and drilling infrastructure off the coast of Florida (where Castro is trying to steal our oil reservers).
Simply set aside $10B to build a wall on our Southern Border. Use only American construction workers.
These are kind of jobs that American workers would definitely want!! And the investment now would reap future benefits in energy independence and border security.
It seems like a no-brainer to me.
-Bruce (GayPatriot)
My thoughts exactly!!!!! Especially the WALL!!!!!
I have to say that I agree with your suggestions that would help push us towards being more energy-independent. We have to build more refineries and we have to invest in other power options such as nuclear.
Here’s what I don’t get – this obsession with some of you guys on building a wall. Does anyone really believe a wall is going to keep people out? Do we really want to be another Berlin? Not to use pithy soundbites, but Janet Napolitano (sp?) said at a forum on illegal immigration last year “Show me a 15 foot wall and I’ll show you 16 foot ladder”.
Personally, I don’t think the wall is the solution. If you want to stop illegal immigration, we must invest in our relationships with our central American neighbors. We have to help bring more prosperity to those neighbors. That kind of shared success will stop illegals, or at least seriously slow them. The U.S. and Mexico have the largest average wage gap of any two contiguous countries in the world. Is it any wonder those folks come here to do jobs we won’t?
But aside from that, Bruce, I’m with you on the economic stimulus. 😉
I wonder what would happen if we had a tax cut and also cut spending. Yeah, I know, it’s a pipe dream but it seems like every tax cut in my lifetime has led to big deficits.
I don’t think sending people a check is going to do much. Okay, yeah I would like to increase my emergency fund by $200-800, but I’m not about to go out and spend it. I’m too concerned that I will be laid off so I would want that money on hand, not in a new flat screen TV.
The “pump priming” theory of John Maynard Keynes did not actually work during the great depression. It was the war that ended the depression. Contrary to the primary democrat game plan, no society has ever been taxed into prosperity. The most direct way to stimulate the economy is to let people keep more of their own money. (Tax cuts.)
The idea to stimulate the economy with $800 is just a feel good move that will placate the democrats and perhaps keep them from ginning up the printing presses even more.
I agree that we should be working hard on the border fence and making a good faith effort at taking a chunk out of the energy problems. But those issues should not be tied to an amorphous “stimulus” package. They should be national priorities.
By the way, a border fence is to make people enter legally. The Berlin Wall was to keep residents from getting out. So far as ladders and fences are concerned, if it comes down to aliens storming the ramparts, we have a far greater problem than anyone imagined.
We’ll have to get the molten lead.
Sounds like FDR New Deal proto-fascism to me…
I’m on the fence over the idea of a wall. (no pun intended, lol) I don’t have a strong opinion on it.
So, since it is a very costly project, my main questions are these: Considering the size of our southern border and the difficulty we have in enforcing the border now, how will we prevent those from simply scaling the wall or tunneling under it? Will the entire border have motion cameras? How many federal employees will it take to monitor the cameras? If we’re going to have that type of enforcement, how much would that cost yearly?
I don’t expect anyone to really know the answer, but these questions should be asked.
“The Economic Stimulus Package – Smoke, Mirrors and More Pandering”
Almost every time the federal government decides to “help” the taxpayers of America, I am reminded of the words of former President Reagan who said: “Some of the most terrifying words in the English language are I’m from the government and I’m here to help.” When it comes to the sub-prime mortgage crisis, no truer words could have been spoken for it was the government’s intervention into the mortgage industry that actually led to the sub-prime mortgage crises. Through revised regulations and guidelines, threats of lawsuits and anti-discrimination legislation, the federal government encouraged and even forced the mortgage industry to loan money to people with bad credit histories and who never should have been approved for mortgages in the first place. Many of these borrowers were getting 100% to 105% loan to value mortgages. The result of all this government “help” was that many of these people eventually defaulted on their loans, which was not a surprise to anyone in the industry.
Now, the federal government is turning its sights to the US economy. When the $150 Billion dollar Economic Stimulus Package was originally proposed, Americans were told that individual “Taxpayers” would be getting tax rebates of up to $800 and married couple “Taxpayers” would get rebates of up to $1,600. The cost would be around $100 Billion dollars. Another $50 Billion dollars was to go to businesses to allow them to deduct 50 percent of the costs of purchases of new equipment. Giving a tax rebate to individual and business “Taxpayers” so they could keep more of their money is not necessarily a bad thing, although tax cuts would be a better way to stimulate the economy.
In the grand tradition of our federal elected officials pandering to special interest groups and trying to buy votes in an election year, both Republicans and Democrats in Congress have agreed to take approximately $28 billion (28%) of the $100 Billion dollar tax rebates originally designated to be given to “Taxpayers” and give it people who did not pay any taxes. How can a tax rebate be given to people who never paid taxes? It’s easy, particularly when career politicians are more interested in getting reelected than looking out for the American taxpayer, and when they are the ones designing the program.
Fortunately, for the non-taxpaying people receiving the tax rebates, these rebates will be a gift, not from the government, but from other “Taxpayers” in America. There will be no tax implications for this group of people because they pay no taxes. Unfortunately for the average American “Taxpayers,” the tax rebates will not be a gift from the government. American “Taxpayers” who receive the tax rebates in 2008 will have to report the money they receive as income on their 2008 tax returns and pay taxes it. How’s that for fairness.
This $150 Billion dollar government give-away will not create jobs, offer any real tax relief to middle class “Taxpayers,” nor help revive a sluggish economy. What it will do, however, is allow members of congress to ‘buy votes” with the taxpayers money.
Although the current proposed House Bill has been estimated to cost American “Taxpayers” about $150 Billion Dollars, just wait until the Senators get their hands on it in an election year. Senate Republicans and Democrats are already looking to add the following to their version of the bill: $800 million in heating assistance for the poor, $12.5 billion for an extension of unemployment benefits, $5 billion more in food-stamp extensions, money for low-income retirees who are left out of the House plan and hundreds of millions of dollars for mortgage counselors. Most likely, by the time the Senate gets through with their version of “pandering to the voters”, the cost of this whole program will be closer to $200 Billion dollars. That’s $200 Billion dollars that America doesn’t have. That’s $200 Billion dollars in more government IOU’s that some foreign country will buy, thereby increasing our national debt way above the 9+ Trillion dollars we already owe.
In contrast, cutting overall tax rates would provide the best economic stimulus, because reduced taxes provide the incentive for entrepreneurs to create jobs and pursue new business ventures. This is how prosperity is created. President Kennedy, President Reagan and President Bush fought for tax cuts soon after taking office. History has proven that when taxes are reduced, total tax revenues increase.
The Bush tax cuts are now set to expire in 2010. The combined cuts are projected to save taxpayers $1.7 trillion over ten years. Reducing tax rates, whether individual or corporate, encourages people to invest in new equipment, plants, technology and hiring of employees, and they also motivate people to work more, create more and take more chances on new ideas. Over both the short-term and the long-term, reduced taxation is the best way to strengthen the economy and create wealth. Government interference and handouts never work.
John Wallace
Candidate for Congress
NY’s 20th Congressional District
If I lived in NY 20 I would vote for Mr Wallace
Lower taxes also increase income inequality. That’s the trade-off. If you’re comfortable with that – great. Funny though, that the so-called most powerful, wealthy nation on earth is the only developed country not to have universal healthcare. The trade-off lives. Personally, I think it’s shameful and morally corrupt. Are we (the lucky ones w/ money, education and opportunity) really that selfish?
As for this southern wall everyone wants – my what hypocrites we have become. Unless all bloggers here are native indian, we have all come to this nation via immigration – either directly or via our forefathers. Who are we to deprive others of the same opportunity. Especially us, the lucky ones, w/ money, education and opportunity. Once again, are we really that selfish?