Posted on 01/20/2008 5:08:24 AM PST by Kaslin
“All this talk of “temporary” stimulus packages makes my blood boil. How about a PERMANENT stimulus package? Why not eliminate the Capital Gains tax entirely? How about cutting corporate taxes to the point where we are a tax haven for businesses worldwide and watch the dollars flow into the economy like never before.”
Because a permanent stimulus would not immediately and directly benefit the Democrats constituents. And by god it may wean people off of the nanny state as they make and get to keep their own money.
But the reality is that a much greater fraction of those still working have a 100% propensity to spend than those in retirement. And there are a lot more people working than retired. So putting money in the pockets of those still working generates more economic activity than putting money in the pockets of retirees.
Metesky: Our "Money" is long gone, we are borrowing this money to pay for this so called rebate.
kinda blows cause my non retirement $ is taxed and was gained during the “accuulation” phase and because of good stratgies is still acumulating...this market thing and housing crunch hasnt made any dif to me.
Don’t be so quick to judge. It’s not a matter of honesty. I simply forgot that accomplishment.
If the government really wants to stimulate the economy, they should cut ALL government spending across the board immediately. We owe over 9 trillion dollars. By spending less than what we are bringing in in taxes, we will see the dollar start to strengthen. This will make the dollars we have saved worth more.
...and a wheel barrel to haul it in.
If you think this blows you had better hope that Hucksterbee or any of the other "Fair" Taxer's doesn't ascend the thrown. For if they do you will suffer the inequity you describe above on steroids.
Imagine, you paid taxes on your income all the way through your accumulation phase just to have them switch to a tax on your consumption right in time for your retirement. I suspect this double fleecing of the baby boomers (which is where the money is) is what is driving the sudden epiphany in Washington that the current income tax system may be broken. But take heart, the crooks in DC are way too vested in selling favors in the tax code to make any significant change.
I have even worse news, but in the interest of brevity I will put it in a separate post.
Well, as a show of protest, when ya’ll get your checks, just sign them on the back and send them over to L98Fiero.
I suspect the crooks in DC will ultimately "Save Social Security" by extending the FICA tax to pension payments and IRA withdrawals (Roth and Traditional).
They will then claim that "every dime of your promised SS has been paid." And after all they only claimed that Roth IRA withdrawals would be free of income taxes. They never said anything about them being exempt from an extension of the FICA tax.
If this sounds like the tyrants in Washington would be giving you a SS check with one hand and taking it away through the tax code with the other. Just remember they only promised to give you a Social Security check. They never said anything about letting you keep it.
Yes, it makes the addict feel better for a short while, but it worsens his condition in the long run.
Keynes famously said about this, "In the long run we're all dead." Keynes was a bachelor. This is fine if you don't mind screwing your children and the next generation.
"Bartender, I'll have another stimulus pakij. Put it on my kid's tab."
"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."
~~Ludwig von Mises
Ludwig is right of course. And you are seeing the liquidation of the malinvestment right now. Just as we saw the liquidation of the malinvestment in early 2000 from the internut bubble.
The huge right-downs you are seeing in the financial sector represent liquidation of the debt instruments created during the bubble. This is a largely deflationary health restoring process. The excess housing stock also needs to be worked off. This will take time.
And go back and look at the sifting process in the tech sector earlier in the decade. The investments that were economic survived. Those that weren't are gone along with all the capital invested in them.
All this is inevitable and for the good. But it doesn't mean that we are destined for a depression or even a recession. Keep a sharp eye but don't get caught up in the panic.
Great idea! And vote ... Rep ... um ... Dem ... uhhh ... and vote Lib ... hmmmmm ....
Better just spend it ... QUICKLY -- while you still can! (just kidding)
They’ll just make up for the rebate by increasing taxes in other areas, it’s all just a shell game.
This is “bribing us with our own money.”
I would say that is a good start. However, we need to scrap the current progressive tax system we have.
I wouldn't think that would be likely. You've already paid the tax. SS and Medicare withholding are calculated before IRA and 401K deductions.
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