The Tax Rebate Was a Flop. Obama's Stimulus Plan Won't Work Either.

Wall Street Journal ^ | August 6, 2008 | MARTIN FELDSTEIN

[adorno]

The Tax Rebate Was a Flop. Obama's Stimulus Plan Won't Work Either.

The only way that the government could have made sure that all of the money in the stimulus package was spent was for the government itself to do the actual payments to retailers. So, rebates would not have been sent out but the payments would've been made directly to the retailers by the government. So, if I wanted a HDTV, I would purchase it and the bill would've been sent to the IRS for payment. That way, every single penny of the stimulus would've been used. The democrats would love that idea since it is they that think that government can spend the people's money better than the people themselves.

[nhoward14]

I didn’t get a check. I am in the “make too much to ever need help” category.

Of course, my senior citizen father needed me to help him file his taxes for the first time in years so he could get his “rebate”.

If not for certain commandments from God, I would have camped out by his mailbox waiting to get MY money back.

[KarlInOhio]

It was awfully nice of the government to borrow $1200 from the Chinese so they could send me $600 I used to pay down my home loan. Thanks a lot guys.

[jwparkerjr]

True to their nature the congress critters enacted legislation that was designed to help them stay in office, not legislation directed at a stimulus. They use their power of the purse to buy our votes election after election.

If their primary goal had been to stimulate the economy by getting more money into the pockets of Americans they could have done it without all the posturing and months and months of delay. All they have to do is cut the gas tax, and if that’s not enough then cut the FICA bite, and then the withholding for income taxes. This would put the money directly into the pockets of Americans the very moment it was passed and signed into law, not months and months later. Give the money back to the people whose money it is to start with. Every rebate they come up with, every stimulus package is nothing more than yet another way to take the rich and give to the poor.

And cutting the tax bite would not have the tremendous overhead that sending out checks to everyone has.

Until we find a way to stop them from using our own money to buy our votes it’s not going to improve.

[bcsco]

What tax rebate? I didn’t get one...

Neither did I. It went to the VA for medical expenses.

[FFranco]

The theory is that if taxes are lowered, then spending will go down so expenses meet revenues. Therefore, according to this theory taxes should be cut first.

Part of President Bush’s greatness is that he is the first president in the history of America (maybe the world) to lower taxes in time of war. Unfortunately, the Democrats (and some Republicans) in Congress refused to reduce spending, which has resulted in increases in budget deficits and a larger national debt (though as a percent of GDP, the national debt is fairly small, but growing).

[stuartcr]

As I said, spending cuts just don’t happen the way we’d like.

[TSgt]

Thank you for your service!

[bcsco]

There are those who did far more than I who deserve your thanks.