Originally Posted by FineTunes
HUNTERSVILLE, N.C. What if a president cut Americans income taxes by $116 billion and nobody noticed?
Nobody noticed the Making Work Pay Credit because it was not a tax cut
At $152 billion, Bush's Economic Stimulus Act of 2008 was bigger, but no one ever called it a tax cut. It was merely "helicopter money
" intended to motivate people to get out of their economic funk and go to the mall. As was expected (by most sentient beings) but surprising (to most "economists"), it was used instead to buy a few tanks of gas or pay off some credit card interest. Its effect on the economy was miniscule if anything, and may have lasted a month or two. Like nearly all government spending these days, the money didn't exist - it was created ex nihilo
, borrowed against our progeny's future, including their future recessions. In my opinion, it was shameless election year pandering... and failed to meet that goal as well.
Obama's MWPC didn't have even that anemic effect, since a few dollars not
withheld from one week to the next isn't likely to get as much notice as a fat check in the mail. Unlike the Bush "stimulus", it was also gradually phased out for individuals making over $75000, couples over $150000, and completely eliminated at incomes over $95000/$190000. It also required completing yet another IRS form (Schedule M). It's also temporary, for last year and this. Is it any wonder it went unnoticed? Why are these people constantly "surprised" at the result of their idiocy?
Transient policies have transient effects. I'll gladly pay less taxes any way I can, but to me, a tax cut
means a permanent reduction in marginal tax RATES
. Anyone contemplating expanding a business or investing one's personal income in something needs a plan for the future. Absent a reasonably certain economic plan to work with, a one-time sprinkle of money doesn't inspire one whit of confidence to make those kinds of decisions. Absent such a plan, we will experience economic stagnation at best - companies and individuals have been hiding in their bunkers since expiration of the Bush tax cuts began to loom on the horizon. For some reason, this fact continues to flummox
"economists" as well.
Changing the tax code allows companies to plan for the future. None
of these programs changed the tax code a bit. Letting people and businesses save and invest their own money is the only proven way to truly restore economic growth, and economic growth is the only proven way to increase Treasury revenue.
When will these idiots come to this realization...? Not soon enough to undo the damage they've already inflicted upon us.