If the economic stimulus package currently under consideration in Washington is the best we can offer, we're in sad shape. The prospect of a $300 rebate check coming in the mail will have such a small impact on the economy it will simply go unnoticed.
The way to stimulate the economy is so very simple - you cut taxes. But cutting taxes will lead to cutting spending and there is no way a Democrat-
controlled Congress is going to cut spending. Expanding the role of the government is the bread and butter of the Democratic Party. And you don't expand that role without having the taxes to pay for those programs.
Where is the leadership that honestly looks at the state of the economy and recognizes that we are spending ourselves into such a deep hole that future generations are virtually doomed from the start? The answer is that there is a sad lack of leadership regardless of the party affiliation. And absent that much-needed leadership, we drift from one proposal to another with little regard to the eventual impact.
But cutting taxes will not help those in most need of financial help because they currently pay little or no taxes. So our government feels compelled to help this dependent population with rebate checks. Yet common sense will tell you that these rebates won't generate one new job, won't retire one single debt and won't benefit those who drive this economy in the first place.
What we need is a program to put this nation to work. And if that means cutting corporate taxes to stimulate their hiring, then doesn't that make sense? The fear from the Democrats is that cutting corporate taxes will benefit only a few fat cats who will line their pockets beyond the bulging point. But history says just the opposite. Those tax cuts encourage business to hire more, to buy more equipment and to expand their operations. That spells jobs in the short-term and more tax revenues in the long-term. Isn't that Economics 101?
You want to know specifically what the $300 rebate check will do? It will allow some people to pay overdue bills. It will allow some people to put a bit more gasoline into their cars. It will allow some people to enjoy a brief luxury that would otherwise be out of their reach.
Now this is all fine and good. But what we need is a stimulus that has reaching power - one that will flow dollars back into the economy. We need a stimulus that will eliminate the federal withholding taxes from millions of paychecks until you reach a certain earning level. Don't send your money to Washington and then perhaps have them send it back your way. Keep those earnings in the first place. Now that will stimulate the economy!
But the same argument continues. Without those taxes the entitlement programs would run dry. And if those entitlement programs run dry, those people impacted will not be prone to vote for those who took those funds. And without those votes, those in power would not remain in power.
And because of all of this, look for a rebate check sometime this summer. But don't look for a long-term improvement to the economy.