Okay, so I think I've been reluctantly convinced that increasing the national deficit for the sole purpose of a tax rebate for people might actually be a good thing for our nation's economy as a whole, maybe. As usual, reading documents from the Congressional Budget Office's website guided me to this hesitant conclusion.
The Republicans, who define themselves by cutting taxes, proposed a tax cut. The Democrats, who define themselves by increasing government services, proposed a tax cut. G'wa?
If the sole purpose of this economic stimulus plan is to, well, stimulusate the economicomy, why are we trying to include 1) rich people and 2) old people in this tax "rebate"? Poor people spend over 100% of their income, while middle- and upper-class folks actually do the unpatriotic thing and save at least a portion of their income, which does nothing to boost the economy.
Instead of giving $500 to everyone, we should give $1000 to the poorest 50%, or better yet, $2000 to the poorest 25%. A flat-screen for every trailer! Lobbyists and the AARP be damned!
Isn't this whole giving everyone a check for the same amount thing constituting a regressive taxation policy? Why are the Democrats for this?
President Bush is going to rail against earmarks and pork-barrel spending in his State of the Union address tonight. As someone who makes his living off of the construction of highways, I couldn't disagree more. But seriously, I do have problems with earmarks in that they fund specific projects deemed important by Senators rather than projects deemed most important by whichever oversight agency should be in charge. Need a bridge to nowhere in Alaska? Give the Federal Highway Administration more money and see if that's the number one project they'd like to see happen. Need $213,000 for olive fruit fly research? Sounds like an NSF grant to me rather than a congressional earmark.
Hey, The Fed, I'm looking to buy a house within the next 6 months. Could you possibly drastically slash interest rates several more times between now and June in response to panic from stock markets so's I can get a better interest rate on my mortgage? Thanks.