Wednesday, January 14, 2009

Republican stimulus plan won't stimulate:

But it will make the economically secure better off.

Via Matt, this from Armbinder:
  • cut marginal income tax rates across the board by five percent
  • increase the child tax credit to $5000
  • make the 15% capital gains and dividends tax rate permanent
  • repeal the AMT on individuals
  • cut the top corporate tax rate bracket by ten percentage points
  • end the capital gains tax on inflation
Republicans will say that this is designed to stimulate the economy but the evidence is that it won't (or will be of minimal value). But "cutting taxes is good for everyone in the economy" is a standard refrain that's not challenged in the press. So Republicans get credit for "caring" about those in financial distress, even though their real agenda is to enrich their supporters.

More on this (an analysis of the Heritage Foundation's proposals failure to do much good) here.


I am unusual being a slightly upper middle class American who has no debt. I own my house, along with my cars, etc. Putting two kids through state college with savings and money that would have gone to the mortgage. (I have always lived below my means, but have recieved a fair portion from dead relatives that all went to mortgage/college savings.)

I do not have enough money/investments to benefit much from the proposed tax breaks. Even without the tax breaks, I already see some real benefits to this collapsed economy as far as buying power. Right now labor cost is falling through the floor and stores are begging for customers with $$. This could work out well for me (assuming I keep my job). If I had investments the proposed cuts would be icing on the cake.

So yes, if I was a heartless "Atlas Shrugged" disciple; why would I want to help out the peasants who made bad choices?

By Anonymous Mart, at 1/15/2009 11:03 AM  

Republican stimulus needs plenty of Viagra to make a stand.

By Blogger Shag from Brookline, at 1/16/2009 3:31 AM  

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