January 25, 2008
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Very Stimulating … well maybe …
I’ve been trying to keep up with the House proposed Stimulus Package and what it really means. As of today I believe this Washington Post graphic sums it up:
Granted it still needs to pass through the Senate and it looks like the Democrats want to add another wrinkle to it. But for the most part I doubt this core part of it will change.So what’s interesting about it you ask?
- Well considering how we’re in a mortgage crisis, this stimulus package won’t help solve that. Not enough cash to the people who seemingly need it the most.
- It encourages spending – duh – it’s an economic stimulus package. Spend money so there’s more money in the system, more jobs created, etc, etc, etc. But if you really think about it the items that this amount of cash will buy or tempt to buy are from non-US companies.
- How did they come up with the AGI limits? Is $75k made in Iowa valued the same as if it was made in San Francisco? Seems like they should have put in some sort of Cost of Living adjustment.
- This stimulus package is supposed to help those who don’t submit taxes because they don’t make enough money. Here’s a hypothetical situation. A married couple on welfare (it does happen), with four kids would receive a $2,400 tax rebate. And here’s another handout. Thank you, please come again.
- No one is mentioning that those who receive the tax rebate will have to report it on their 2008 taxes as income. That should knock a few people up a bracket or two. Yep, receive a rebate and potentially pay more taxes next year.
- $75,000 AGI a year is pretty high but they keep saying it’s for the poor and middle-class. With the potential addition of the elderly on Social Security you now have the whole target audience of the Democrats. Basically, those who rely on the government to bail them out. True this was a bipartisan bill but honestly how would it look if anyone, Democrat or Republican said “No” to a stimulus package. Remember, 2008 is an election year.
- Wait, someone’s gonna have to pay for this rebate at some point. Yep,
those who generally get “penalized” – those who have made intelligent
decisions, those who worked hard and did something with their lives and
those who saved their money and played by the rules.
Rebate or not all of us are gonna pay for this short term solution.
