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This is a plan for stimulating the economy?
Posted by: McQ on Friday, January 11, 2008

If you buy into the notion that the government is responsible for 'stimulating the economy' in supposed down times, would this be how you approached it?
Democrats controlling Congress are looking at tax rebates, extended unemployment benefits and more food stamps to stimulate the sagging economy.
More food stamps? Extended unemployment benefits? That's not a stimulus, for heaven sake. It's insulation.
The mantra among Democrats and many economists is that any stimulus bill should be timely, temporary and targeted toward people most likely to funnel the money right back into the economy. As such, some Democrats are suggesting limiting tax rebates to lower-income and middle-class families and people with children.
Most "lower income" families don't pay income taxes to begin with, and the same may be true with middle-class families with children and a mortgage. So what do you "rebate" to them?
"Our initiative will assist hard-hit families by promoting consumer confidence, economic growth and job creation," House Speaker Nancy Pelosi, D-Calif., said in a statement Tuesday.
Really? Pelosi must know something about economics which isn't at all clear given the broad outlines of their "package". Seems to me that, for one, cutting Corporate income taxes, the 2nd highest in the world, would far more likely to stimulate growth and job creation than rebating taxes not payed, more food stamps and longer unemployment benefits.

UPDATE: The WSJ makes the proper point:
A real fiscal stimulus is one that immediately and permanently changes the incentives for individuals and business to work, invest and take risks.
 
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Previous Comments to this Post 

Comments
McQ, you ignorant slut. Trust the Democrats. They know, in a mystic way beyond reason and facts, that if history, especially twentieth-century history, demonstrates anything, it’s that if there’s one institution we can put our faith in to keep us all well-fed, happy and prosperous, it’s the State.
 
Written By: Bilwick
URL: http://
Ugh. Bush’s wild-ass spending ways look awful until you realize that what the Dems want to do is even worse: "We’ll trump Bush’s spending and raise you with more government handouts". So the Dem ’solution’ is to give more money back to those families who already pay no taxes and get IRS rebates to boot. Sounds a lot like current Venezuelan economic policy
 
Written By: Darrell
URL: http://
Seriously, is anyone in Congress - now that Cynthia McKinney is gone - dumber than Nancy Pelosi?
 
Written By: Grimshaw
URL: http://
This isn’t a plan. This is BS to prattle off in case a microphone is stuck in your face and you have to defend buying votes and bringing in the socialist paradise.

I mean it doesn’t have to make sense. The reporters are just going to take it at face value nodding their heads like they believe it too.
 
Written By: jpm100
URL: http://
And another thing which is mostly off-topic. This is the sort of stuff that makes me weary of civility in politics. I don’t want bi-partisanship. I don’t want a new tone. I want the complete destruction of socialism. I don’t want unity if unity means capitulation to statists. I’m so tired of people who value ’getting along’ more than doing what is right. Sometimes a half a loaf is okay, but sometimes it isn’t.
 
Written By: Grimshaw
URL: http://
Here’s a plan for stimulating the economy, give all the Haliburton contract money to ME! I’ll quickly recycle it back into the economy! If the Denizens of QandO will agree to support me and my plan, first round of drinks at Spearmint Rhino are on me!
 
Written By: Joe
URL: http://
Joe,

Will there be a 150" Plasma HDTV in every living room?
 
Written By: Scott Jacobs
URL: http://
Scott, Maybe...certainly in MY living room.....could be one in yours....that is if there is enough money left over from the lap dances...you might want to talk to "Tiffani", "Kandi" "Bambi" or "Desiree" to see if they can spare you any cash for the TV after the show(s).
 
Written By: Joe
URL: http://
At least he’s honest... I can support that...

Need an accountant? I am fully aware of Accounting ethics and standard practices...
 
Written By: Scott Jacobs
URL: http://
If the Congress is considering an economic stimulus package to avoid a recession, handouts won’t hack it. They need to add new jobs. People on food stamps do not create jobs. The Earned Income Tax Credit (EITC) is already in place - refunding more tax than an individual had withheld. For example, a family of five with $25,000 income pays tax on only $8,000 for a total tax of $813. The EITC would be $4,718. His "refund" would be $3,905. It is a way to payoff their constituents again.

The best way to stimulate the economy would be to extend the Bush Tax cuts, change capital gains, depreciation schedules, repeal the AMT or at minimum index it to inflation. Public works projects are inefficient and because of their requirements, over priced. Small businesses generate new jobs.
 
Written By: Arch
URL: http://
Need an accountant? I am fully aware of Accounting ethics and standard practices...
Are you aware of them because you eat, sleep, live, and breathe these practices and ethics as an integral part of your very existential being, or are you aware of them as in, "Sure there is my book of ethical practices over there, see the shrink wrap is still on it."? The answer is important.
The best way to stimulate the economy would be to extend the Bush Tax cuts, change capital gains, depreciation schedules, repeal the AMT or at minimum index it to inflation. Public works projects are inefficient and because of their requirements, over priced. Small businesses generate new jobs.
And YOUR proposal is going to get me lap dances from teh HAWT women how and benefit the hard-working single mothers of Spearmint Rhino HOW? Obviously you have no concept of what makes America work and no compasssion! Joe’s plan is quite obviously the BEST plan...for Joe and his accountant(s).
 
Written By: Joe
URL: http://
For example, a family of five with $25,000 income pays tax on only $8,000 for a total tax of $813.
Is it just me or does anyone else get a ’WTF’ look on your face when you hear ’family of 5’ and ’$25,000 income’. Let’s show a little responsibility here - we already have enough Britney’s in the world.
 
Written By: meagain
URL: http://
Grimshaw,

I agree, but there is a political reality that says we will have to settle for some compromise or other.

 
Written By: Don
URL: http://
Joe, I both have the book on my shelf, and have read it. I have even passed a class on Ethics in Business and Accounting.
 
Written By: Scott Jacobs
URL: http://
Meagain:

A family of five with a $25,000 income is on the low end of the income ladder. If the government wants to restart the economy, create new jobs, don’t just pass out more taxpayer money to individuals.

What’s Britney got to do with this subject?
 
Written By: Arch
URL: http://
Joe, I both have the book on my shelf, and have read it. I have even passed a class on Ethics in Business and Accounting.

This is not entirely encouraging...after all what if, like some undigested morsel of potato or piece of gristle, your conscience should be stirred whilst we’re uuuu’uuum "stimulating" the economy? Can I then expect some tiresome lecture about ethics, morality and our duty to the shareholders? I mean really sir, this is all about the money and the grrrrls and the plasma screen TV’s....I think I’d prefer someone that has managed to not corrupt themselves with ethics....

And to be fair, Britney can afford a very large brood of progeny...she has lotsa money, not much else and the children certainly deserve our profoundest sympathies, but she isn’t really the best example.
 
Written By: Joe
URL: http://
I prefer to "know the enemy".

You’ll note I never said I followed those ethics. Just that I knew them well. See how easy it is to symanticly fool people? :)
 
Written By: Scott Jacobs
URL: http://
I prefer to "know the enemy".
It’s why I took my Civil Liberties Class.....
You’ll note I never said I followed those ethics. Just that I knew them well. See how easy it is to symanticly fool people? :)

I read law for a living and so I just wanted to know for sure...
 
Written By: Joe
URL: http://
"We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle."
— Winston Churchill

1. The funds the Congress want to inject into the economy must first be taken out of it.

2. I do not agree that when the private sector must compete with the government for credit that we are stimulating growth.

3. The wealthy are the people with the power to create economic growth. Politicians have the power to do the direct opposite.

Repeat after me, "Lower marginal tax rates increase government revenue and reduce the demand for entitlement." Now again...
 
Written By: Arch
URL: http://
The best way to stimulate the economy would be to extend the Bush Tax cuts, change capital gains, depreciation schedules, repeal the AMT or at minimum index it to inflation. Public works projects are inefficient and because of their requirements, over priced. Small businesses generate new jobs.
How will this help Dems get re-elected?
 
Written By: mac
URL: http://
What’s Britney got to do with this subject?
Sorry Arch - I wasn’t calling you out. The Britney comment was a reference to trailer trash. My point was, how do people end up with a family of 5 with that kind of income? It is totally irresponsible, and to me borders on child abuse.

But I did get your point - sorry for the confusion.
 
Written By: meagain
URL: http://
Meagain:

Okay about Britney, I thought I had missed something.

According to the DoC, a high school dropout will average about $25,000 per year. A high school grad will make about $35,000. College grads, $50,000 and up.

A family of five is a dad, a mom and three children. I didn’t say 5 children.
 
Written By: Arch
URL: http://
"....I think I’d prefer someone that has managed to not corrupt themselves with ethics...."

Ahem. You called? I have heard of this thing called ’ethics’ but, being an American of Western European descent and being thoroughly immersed in that rapacious and destructive culture, I am not entirely sure what they are. In any case, if you seek someone with a proven ability and understanding of wasting ones substance in riotous living, I am your man. For a small stipend, of course.
 
Written By: timactual
URL: http://
cutting Corporate income taxes, the 2nd highest in the world, would far more likely to stimulate growth and job creation

No, not at all. There is no connection because there would be no incentive to invest because the economy will be in a recession.
 
Written By: Steve J.
URL: http://radamisto.blogspot.com
No, not at all. There is no connection because there would be no incentive to invest because the economy will be in a recession.
Ah, so the corporation would do what with those tax savings instead ... bury them in a coffee can in the back yard?
 
Written By: McQ
URL: http://www.qando.net/blog
He was being sarcastic, McQ...
 
Written By: Scott Jacobs
URL: http://
I don’t want unity if unity means capitulation to statists.
Here, here...
 
Written By: Rob
URL: http://

 
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