Ray Jay wrote:This notion that tax cuts are good and spending is bad is too simplistic.
I would agree. I think many Republicans would agree too--IF there was a genuine desire to push for something that works in the real world, rather than a genuine desire to provide subsidies to supporters.
Anyone else notice that a disproportionate number of Obama's proposals are for union jobs? Cops, firemen, teachers, construction workers . . . union, union, union, union!
It really does matter what kind of tax cut (and what kind of spending). We need a stable tax policy that can be used for long term planning.
This is spot on. The problem is that nothing I've read about what Obama has said or proposed looks permanent. Maybe when all the details are out that will be different. The idea that a Stimulus Jr. package is the way to go is, I think, remarkable.
The first Stimulus, if it worked at all, was a tepid success. We know there are trillions sitting on the sideline. So, why not try and get that money engaged? That seems like THE way to go. And, temporary credits, deductions, etc., do not provide certainty. I don't think these proposals will do much because they don't give it.
I'm not against this particular tax cut, but the reality is that if you want a real improvement in our economy which is based on productivity, we need confidence that the tax rules are steady, and we need the lowest possible marginal tax rate possible. Distortions and complexity are part of the problem. Not all tax cuts are alike.
I was somewhat heartened by the President's call for tax simplification and SSI/Medicare modification. If he's serious, maybe something can be done that will be positive.
I am pleased that the intention is for future cuts to accompany the one time stimulus.
I'm not. Here's why
from the AP:OBAMA: "It will not add to the deficit."
THE FACTS: It's hard to see how the program would not raise the deficit over the next year or two because most of the envisioned spending cuts and tax increases are designed to come later rather than now, when they could jeopardize the fragile recovery. Deficits are calculated for individual years. The accumulation of years of deficit spending has produced a national debt headed toward $15 trillion. Perhaps Obama meant to say that, in the long run, his hoped-for programs would not further increase the national debt, not annual deficits.
Want jobs right away? How about drilling for oil?
Want to fire up the economy? Lower energy prices by expanding our use of carbon-based fuels.