Posted by
Jim on Sunday, November 23, 2008 5:15:17 PM
There is a proposed second government stimulus payment coming. While it may be welcome news on the face of it, let us review some economic facts. Government doesnt create wealth. The only way it has any money at all is through us the taxpayers or borrowing. So to mail checks to the "middle class", Obama and company would have to tax Mr Employer. Now Mr Middle Class receives say 1000.00. That is 1000.00 less Mr Employer has to expand production or hire another employee. It is moving money from one group to another. While it is a temporary fix, it isnt a permanent one. The same is true of the infrastructure jobs that is proposed. Taking money out the economy by providing the road builder with a govt job is denying another person - say a plumber - a private sector job which is permanent. The solution is to cut corporate taxes drastically as well as capital gains. What about a two year cancelling of these taxes? Then we can push down income taxes again at least 10% with an eye toward permanent tax reform. I promise you that the economy will recover quickly.