Topic: Economics
The Tax Rebate Justification How the Liberals and Conservative Liberals convinced themselves what they are doing is right.by EJ Moosa
(Libertarian)
Friday, January 25, 2008
Watching the evening news on Thursday, January 25th, 2008, my jaw nearly stayed on the floor as I listened to the ABC Evening News with interviews and justifications for the upcoming Tax Rebate.
The numbers were pushed up. Workers making at least $3,000 would get $300 to $600. Working couples up to $1200, and working couples with kids even more. The fact that you paid no taxes was not important. That you would spend it is the key.
But that was not the highlight of what I heard. It was the justifications and the fears of how it would be used that bothered me the most.
The arguement of the money multiplier was introduced. People spending their rebates on new purchases were what was sought after the most. Their money multiplier was greater than one and would be good for the economy.
People investing their money in the stock market, or saving the money, as higher income earners would is a bad outcome. That is why there is a cap of $174,500 on couples with no children. They do not get any of their money back. They will not spend it properly. The rebates are "phased out" at that point.
What was so upsetting was the analysts(government and private) who feared that the money would be used to pay bills. This was considered of no use for the economy as it was only paying for things already purchased. That the money would go to pay towards rent or a mortgage was also a bad thing.
Can anyone see the connection between these comments and how the federal government manages their own finances? Spend Spend Spend is good. Paying off your debts is bad.
Completely lost is the fact that this money should not have been collected in taxes to begin with. That would have been the greatest economic stimulus. If we allow the politicians to justify who gets the money based on how it will be used, we are one slippery step closer to the socialist dream of so many liberals. "The Greatest good for the greatest number" does not belong in a Republican Country's dialogue on returning money to taxpayers(and I am not talking of the Federal Welfare for those that paid no taxes).
It should be of no consequence to anyone at the Federal Level as to what one does with their money. Spend it. Invest it. Shove it in a mattress. Burn it. It's yours! Not the Federal Governments!
On the Senate side of this proposal, we already have Kennedy and Company clamoring for more money for those not producing. Increasing unemployment payments for starters. The blood is in the water and the sharks can tell this is just one more great opportunity for income redistribution. The money was collected from those that could afford it. It is being redistributed to those that did not earn it. Pure and Simple. George Bush and Nancy Pelosi have no issue playing Robin Hood. Bush is worried about his lagacy, and wants to be compassionate at any cost.
And this during a time frame where we are not in a recession, and unemployment is at historically low levels.
Woe be to us if things were to really be bad.
Worst news yet: Four of the Five participants in last night's Republican debate SUPPORTED the stimulus plan.
Only Ron Paul took a different stance. Ron Paul wants to lower taxes altogether.
''The government does have a responsibility, but it's supposed to lower taxes, get rid of regulations and devise a monetary policy that makes some sense,'' Ron Paul stated.
At least Ron Paul gets it. Ron Paul makes sense.
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2008 EJ Moosa, all rights reserved.
Published: Friday, January 25, 2008
Last modified: Friday, January 25, 2008
The views expressed in this
article are those of EJ Moosa only and do not represent
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This stimulus package is so pointless and stupid. What is this going to do for the cost of housing and inflation??? How dumb can our government be? They think our frustration and anger can be bought off with a few dollars. Wow this is a new low for our leaders. Inflation is gone through the roof yet they try to solve the problem by creating more inflation?
Of course, the real kicker is that the government has it figured out that if you are not rich a lot of that $300 to $600 is going to be spent on gasoline, the price of which is as high as it is because of federal and state gasoline taxes. And at the end of the year, you are required to include whatever rebate you receive at this time in your gross income and pay taxes on it at the tax bracket you are not in. Since most of the money the government actually has is from payroll witholding payments they are in effect lending you your own money, which you had to loan to the government, and then charging interest for letting you use it. Of course they do not pay interest on what they have borrowed through this system.
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2008 EJ Moosa, all rights reserved.