Posted on 01/27/2009 1:29:40 PM PST by pilgrim
(snip)This week the House will be voting on a two-year, $825 billion economic stimulus package. This is on top of vast sums already being spent in the financial bailout packages. The program is immense. Will it work?
The idea is to jump-start "aggregate demand," according to traditional Keynesian precepts. Milton Friedman, on the other hand, taught us that government spending and tax handouts do not stimulate demand, because every dollar doled out by government must be first taken in by taxes, borrowing or other spending cuts. The net effect on aggregate demand is zero.(snip)
(Excerpt) Read more at online.wsj.com ...
Carry back losses.
Energy Tax Incentives
Expensing
"If the tax provisions of the stimulus program will not fix the economy, neither will the spending programs."
and lastly.
"Worse, each dollar spent eventually costs the public collateral economic damage due to tax-generated disincentives and distortions. In his "Reflections of a Political Economist," William Niskanen found that "the marginal cost of government spending and taxing in the United States may be about $2.75 per additional dollar of tax revenue" under one set of simulations, and as high as $4.50 under other tests. To make up for this dead-weight loss, government spending must be worth much more than its apparent budget cost to be good for the country."
Corporations don’t pay taxes. People do. Reduce that tax on people.
Too bad our congress doesn’t seem to acknowledge this!
Take care........pilgrim
Congress should pass tax cuts, instead of a stimulus bill.
How about a reduction in the RATES for corporate, capital gains, and income taxes????????????
This would be over already if they were SERIOUS about it instead of trying to figure out how to waste $$$$$TRILLIONS in pork.
“The program is immense. Will it work? “
NO! It will add to the deficit and grow the Government, but it will HURT the private sector economy.
***Corporate Tax Cuts Should Be Part of the Stimulus***
Spending cuts should be all of the stimulus.
The "only" effective stimulus? So what Ronald Reagan did didn't stimulate the economy. Cutting corporate taxes to 0% wouldn't stimulate the economy?
So how many of you are relaying this to the conservative news heads? I keep sending this to Glenn Beck, but one person isnt going to make an influence, if hundreds of you sent to the news heads, then we could make a difference with the Fair Tax.
Off Topic.
“Are You Looking for a Job?”
http://www.freerepublic.com/focus/chat/2136635/posts
Regularly updated thread.
I agree 100%! 
Given all the obvious advantages of FairTax, if implemented right now it would turn around the US economy faster than an F-22A Raptor doing a high-speed turn.
“The “only” effective stimulus? So what Ronald Reagan did didn’t stimulate the economy. Cutting corporate taxes to 0% wouldn’t stimulate the economy?”
The Fair Tax would cut corporate taxes to 0%. Also it would cut Federal Income Taxes to 0%. What Reagan did stimulated the economy. What the Fair Tax would do is stimulate the economy a lot more.
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