Hope: Economic relief??

jreeves

Senior Member
Feb 12, 2008
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Permanent Tax Relief - Not Tax "Holidays" - Stimulates Economic Growth
It has grown fashionable in the media and in Washington to assume that what the economy needs right now is a quick stimulus, or "jolt," by putting cash in the hands of ordinary Americans--or government agencies--that they go out and spend. The theory is that people will take this money, go out and buy things, and this spending spree will reignite economic growth. Economists often refer to this as a "Keynesian" fiscal stimulus, named after the late British economist John Maynard Keynes.

A tax version of this idea has been embraced by some Republicans as well as Democrats. Their proposal: Americans would receive temporary tax rebate, or a "tax holiday" for a few months during which they would pay no federal taxes.

To be sure, letting Americans keep their money rather than sending it to Washington means it is more likely to be used wisely. But if the additional goal is to spur economic growth, this tax "jolt" will have little impact. Fiscal policy in the form of short-term tax holidays, or temporary spending jolts, will not rekindle economic growth; only long-term reductions in marginal tax rates on capital and work will accomplish that goal.

Long-term tax rate reductions--as opposed to short-term jolts--are needed because the important economic decisions that will trigger a real recovery depend on more investment in new factories and new equipment. Americans are more likely to make these investments when they believe that there will be a long-term improvement in the after-tax returns to investing, working, and taking economic risks. Such improvement requires long-term marginal rate reductions, not a temporary shot-in-the-arm.

The Treasury presses are going to be running non-stop over the next four years and Americans can expect no help from a liberal government only worried about spending more of their money.
 
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Permanent Tax Relief - Not Tax "Holidays" - Stimulates Economic Growth
It has grown fashionable in the media and in Washington to assume that what the economy needs right now is a quick stimulus, or "jolt," by putting cash in the hands of ordinary Americans--or government agencies--that they go out and spend. The theory is that people will take this money, go out and buy things, and this spending spree will reignite economic growth. Economists often refer to this as a "Keynesian" fiscal stimulus, named after the late British economist John Maynard Keynes.

A tax version of this idea has been embraced by some Republicans as well as Democrats. Their proposal: Americans would receive temporary tax rebate, or a "tax holiday" for a few months during which they would pay no federal taxes.

To be sure, letting Americans keep their money rather than sending it to Washington means it is more likely to be used wisely. But if the additional goal is to spur economic growth, this tax "jolt" will have little impact. Fiscal policy in the form of short-term tax holidays, or temporary spending jolts, will not rekindle economic growth; only long-term reductions in marginal tax rates on capital and work will accomplish that goal.

Long-term tax rate reductions--as opposed to short-term jolts--are needed because the important economic decisions that will trigger a real recovery depend on more investment in new factories and new equipment. Americans are more likely to make these investments when they believe that there will be a long-term improvement in the after-tax returns to investing, working, and taking economic risks. Such improvement requires long-term marginal rate reductions, not a temporary shot-in-the-arm.

The Treasury presses are going to be running non-stop over the next four years and Americans can expect no help from a liberal government only worried about spending more of their money.

I agree. Right now any money I get to 'keep' will be used to pay off debt, whether credit card or getting ahead on my mortgage.

I doubt I'm alone. This year I spent about $350 on Christmas, last year over $1800. Dinner for the day, $300, last year almost $500. (Yes, lots of left overs, but that wasn't the point.)

In the past 2 weeks I changed my kids auto policies from 'Comprehensive' to 'Collision', saving myself over $100 per month. If they are 'at fault' they'll have to pay their own repairs. I changed my cable from "Premiere" to Dish with 200 channels, saving about $35 a month. I changed my phone service to 'use only' and ditched the cell I use about 4 times a month, saving over $120 a month. More cuts coming...
 
Ah, cuts are no fun. I'm taking a home equity mortgage to buy a boat for this summer. My neighbors have boats, and I don't. My life isn't complete.
 
Ah, cuts are no fun. I'm taking a home equity mortgage to buy a boat for this summer. My neighbors have boats, and I don't. My life isn't complete.

Nope, but necessary. You will live without a boat. I'll live without those really cute black slacks and great top, not to mention the Coach clutch I've been coveting...
 
I was being sarcastic, I probably should have used a smiley.
 
A tax version of this idea has been embraced by some Republicans as well as Democrats. Their proposal: Americans would receive temporary tax rebate, or a "tax holiday" for a few months during which they would pay no federal taxes.

Well that's just fine for those who are working, but what about those who have lost their homes, jobs, families, and are living in a makeshift tent in the woods in this freezing weather?
 
Well that's just fine for those who are working, but what about those who have lost their homes, jobs, families, and are living in a makeshift tent in the woods in this freezing weather?

I haven't seen those stories, got a link? Could this be the first Democratic president with a growing homeless population? :eek:
 
HOMELESS 1

HOMELESS 2

There's a lot more...

No offense meant, but these are both typical of 'chronic homeless'. Do not want to stay in shelters or kicked out of shelters for some behavior. Mental illness/addiction often playing a part.

So far, no sign of the 'Hoovervilles' that your original post portended, at least to my reading.
 
Well that's just fine for those who are working, but what about those who have lost their homes, jobs, families, and are living in a makeshift tent in the woods in this freezing weather?


I don't mean to sound selfish but why should I be forced to pay for someone elses problems... If I lose my job, why is it someone elses fault? If I make a bad decision why is it someone elses fault????

I am all for charity. In fact I give plenty to good will and my church but I don't believe people should be forced to give.
 
I don't mean to sound selfish but why should I be forced to pay for someone elses problems... If I lose my job, why is it someone elses fault? If I make a bad decision why is it someone elses fault????

I am all for charity. In fact I give plenty to good will and my church but I don't believe people should be forced to give.

What I was getting at was how is a tax break going to help someone who is not working?
 
Well that's just fine for those who are working, but what about those who have lost their homes, jobs, families, and are living in a makeshift tent in the woods in this freezing weather?

Guess they are "out in the cold". Soup kitchens and shelters, I guess. It's not pretty, not desirable, but it's life in the human condition. Always been that way, always will be that way.
 
What I was getting at was how is a tax break going to help someone who is not working?

It won't. It's not intended for those. It's designed to keep keep those working to stay working by increasing the money people can use to spend to buy the things those still working make or service.

We have private charities in the form of missions, shelters and soup kitchens for those folks.....
 
Well that's just fine for those who are working, but what about those who have lost their homes, jobs, families, and are living in a makeshift tent in the woods in this freezing weather?

Don't worry Obama will give them tax breaks as well, a job isn't a prequalifier for a tax break by Obama's standard.
 

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