the rebate checks / stimulus plan

[lester1/2jr]

what are you going to spend your tax rebate on?  I'm going to buy "exploitation of the independents" , vodka, dinosaur jr's first album and some good food.  So we know how it will affect me.  But how about the larger economy?  Well,  the problem is rebates are a temporary measure.  real change comes from permanent distinct changes in the system itself.  There is not a hint of that in this much ballyhooed "bipartisan" bill.  no spending cuts, no tax cuts, no redirection away from the problems that brought on the call for this action in the first place.  I hope everyone will spend some of their rebate on safe sex products.   

The Dangerous Stimulus

by Ron Paul


         


Before the House of Representatives, January 29, 2008

Madame Speaker, I find it odd that HR 5140, a bill allegedly designed to provide a stimulus for the anemic American economy, contains provisions that could damage the economy and hurt American taxpayers. Specifically, the provisions increasing the loan limitations of the Federal Housing Administration and the Government Sponsored Enterprises (e.g. Fannie Mae and Freddie Mac), will exacerbate the long-term problems in the housing market, and may even lead to a future taxpayer bailout of the housing industry. The recent bursting of the housing bubble should have taught my colleagues the dangers of government policies that distort the market by diverting resources to housing, when those resources would be more efficiently used in other sectors of the economy.

Ironically, many of the same members who insisted that upper-income taxpayers be denied the tax rebates are enthusiastic champions of the provisions in HR 5140 increasing the FHA loan limit to $633,500 and the GSE loan limit to $729,750. This increase in the loan limits represents a generous taxpayer subsidy to high-income homeowners.

A one-time "rebate" check, while it may provide a temporary boost to many working American families struggling with the current downturn, is not going to provide the type of sustained income growth necessary to restore consumer confidence. In fact, history shows that when the government forgoes serious tax cuts in favor of one-time "rebates" most people either save the money for a "rainy day" or use it to pay down some of their debt.

In addition, I am concerned that the 50% bonus depreciation and the increase in the amount of qualifying purchases that small businesses can expense in the year they bought their equipment will be of limited effectiveness because they are limited to one year. A more effective way to stimulate the economy would be to make the 2001 and 2003 tax cuts permanent  . I also hope Congress considers the long-term tax cuts contained in HR 5109, the Economic Growth Act.

Congress should also pass my Tax Free Tips Act (HR 3664),    which makes tips exempt from Federal income and payroll taxes. Making tips tax-free will strengthen American families and the American economy by allowing millions of hard-working Americans to devote more resources to their children's, or their own, education, or to save for a home, retirement, or to start their own businesses.

Another disturbing feature of HR 5140 is that, instead of taking the fiscally responsible course and pairing the tax cuts with spending cuts, this bill simply adds to the national deficit.


....rest at link

[Mr_Vindictive]

I'm all for someone paying me back money.  That's fine.  I just can't help but feel that this money that I have already given to the government, could be put to much better uses.  How about take every penny of these rebates and then voting SCHIP through.

What?  No?  Children aren't as important as a last ditch effort to strengthen the economy? 

I don't understand the decisions of political higher-ups.

[Andrew]

If the plan goes through, fine.  For some time now,  one of the biggest things on my mind has been deficit spending.  I want it to stop, immediately.  Then I want us to start paying off the national debt.

[RCMerchant]

What p**ses me off is this...I have to pay over 2 grand on my tiny piece of muck-dirt. I pay this to the same goverment that my wife has two...(soon to be three...as Angel plans to sign up as well) children who are putting there lives on the line for. Jim just got out of Iraq...he's a grunt in the Army. He's in Germany at the moment,fixing to be deployed in Afghanistan. Tooie is in boot,to be deployed in Iraq as a supply truck driver. Not an enviable job. From what I gather,it's dam dangerous. Andrew-you would know and have much more info on this subject than I...perhaps you could enlighten me on what that particular job calls for?

  What I'm trying to say is ....what more do they want? We,as citezens,are giving our blood-our family-to die for these milkers. Why won't they give us -the working poor-a litte respect,instead of treating us like disposable people?

[raj]

Heck, I'm going to use mine to pay down some credit card debt (had some recent unexpected expenditures).

[lester1/2jr]

what they should have done was pay for this by cutting something else.  we have a 3 TRILLION dollar budget.  SURELY, they could have found some ridiculous subsidies or beaurocrat heavy foreign aid deal to drop for an emergency.  instead they are borrowing this from China.  At the same time Bernanke is cutting interst ratees, meaning more money will be printed up and the dollar dropping even more.  in short, the very same behaviour that got us into this situation is being used to solve it.  in reality, it will insure the prospective recession continues much longer than it naturally would have.


skaboi-  well, first of all considering how stupendous the government is in every other area, it is probably a blessing they aren't insuring our children.  they would probably be pushing corrective behavioour pills down their throat and immunizing them every other week as a handout to some senators brothere who runs a vaccine company.

   but i understand what you are saying.  why is there is something we need or even want, can't we have it?   in fact, the government seldom uses any of it's 3 trillion dollar budget for anything of use to anyone and in fact uses it for many things none of us want.  subsidies for stuff we don't use.  foreign aid to coutries that hate us,etc

rcmerchant-  we are disposably to them.  they see us as sources of "blood and treasure" for them to throw around the world willy nilly

[CheezeFlixz]

I'm all for someone paying me back money.  That's fine.  I just can't help but feel that this money that I have already given to the government, could be put to much better uses.  How about take every penny of these rebates and then voting SCHIP through.

What?  No?  Children aren't as important as a last ditch effort to strengthen the economy? 

I don't understand the decisions of political higher-ups.

The SCHIP was VETO'd because it was re-written to include "CHILDREN" up to age 25. So you could have children with children getting it, IMHO children stop at age 18 which is where the plan originally had it.