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My personal musings about anything that gets on my radar screen--heavily dominated by politics.

2008-01-18

This Would Certainly "Stimulate" My Economy 

He also called for tax relief for individuals — probably to come in the form of one-time rebates. But he did not say how much money Americans would get to keep or the amount of other tax incentives that could be in the package. Nor did Bush detail how the nation would pay for such a plan. He has proposed rebates of $800 per taxpayer.

Acting--and reacting--out of pure self-interest, I say "GRAND" My family could certainly use an extra $1600 any time anybody wants to give it to us.

But , in reality, we all know economists just make this stuff up as they're going along, and the likelihood of that money in every taxpayers' hands doing a great deal for the broad economy is suspect. At the moment, with the credit crisis and the housing market problems, it seems to me the problems the economy faces are more systemic than individual; thus, I think a systemic solution would be more in line.

I would have preferred something along the lines of a dramatic slash in corporate taxes, perhaps even with incentives for hiring and expansion, coupled with a large cut of the Fed's interest rate--things that would have ( in theory) encouraged the engines of the economy to get moving more ambitiously.

Hey, if the Ph.D.'s can just make this stuff up, why can't I?

But seriously, a tax rebate, as wonderful as it is for individuals, smacks just a little too much of government "Doing Something" for the publicity, rather than just taking care of business.

Or . . . .I wonder if this wouldn't have been the moment in time to start pushing for a dramatic--BIG--reform of the tax code? Maybe an opportunity for the flat tax missed? . . . .

On the plus side, this should at least signal an end to Charlie Rangell's plan to raise the tax rate. If the government can afford to (return to the public their own damn money) write everybody a check, it certainly doesn't make any sense that they would need to start collecting more.
Posted by: Michael / 1/18/2008 02:19:00 PM

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