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Does this sound like a better alternative?

OK we all know that the so-called "stimulus bill" contains lots of pork and some infrastructure spending that might put people to work for a limited time but not create lasting jobs.
In a nutshell here is what House Republicans proposed:

The Economic Recovery and Middle-Class Tax Relief Act of 2009, promises a host of tax-cutting measures. It includes a 5 percent "across the board" income tax cut; an increase in the child tax credit from $1,000 to $5,000; a freeze on capital gains and dividends tax rates at 15 percent; and a number of other measures targeted toward businesses".

Politics and partisanship aside, does this sound like a better plan to you?
Why or why not?

Answer Question
 
MojitoMama

Asked by MojitoMama at 2:38 AM on Feb. 3, 2009 in Politics & Current Events

Level 2 (6 Credits)
Answers (47)
  • I think a combination of both would work. Cutting income tax for people does not help create jobs. I am not sure a 5% income tax credit is going to allow people to run out and buy cars (which helps the failing auto industry), afford new mortgages, or increase our buying power.

    The issues with our economy are not so cut and dry. I wish they were!
    jcsscfam5

    Answer by jcsscfam5 at 2:43 AM on Feb. 3, 2009

  • I honestly don't know. It all sounds temporary to me. I don't mind a temporary fix while we're waiting on the permanent fixes to move into position.
    MamaChamp

    Answer by MamaChamp at 3:02 AM on Feb. 3, 2009

  • Sounds great. Tax cuts have worked in the past and have a proven track record the whole bailouts have not worked and never have. I would be thrilled with this. Won't happen though.
    Anonymous

    Answer by Anonymous at 3:10 AM on Feb. 3, 2009


  • I AM A BUSINESS OWNER.

    Cut my taxes, I will hire more people. CREATES JOBS!!!!!
    PRETTY CUT AND DRIED.
    mustbeGRACE

    Answer by mustbeGRACE at 5:34 AM on Feb. 3, 2009

  • Ohh and I believe there is also a mortgage interest rate drop to 4%...  I need to read the details. they were just talking about it on the news this AM. 


    Hrmmm putting more money in middle Americans pocket? I too am a small business gal. That would likely boost my business if middle America has more discretionary income. Cut my taxes, I can afford to hire back the person I let go or upgrade business equipment to make me more competitive...


    Wow a concept that leaves an opportunity for more discretionary income in the Middle America's pocket then the proposed sexually transmitted disease research??


    Say it aint so!

    grlygrlz2

    Answer by grlygrlz2 at 7:36 AM on Feb. 3, 2009

  • They need to encourage business expansion, period. All these government created programs aren't doing that, but the tax cuts need to be tied into expansion, not just gifted. Penalties for outsourcing, bonuses for job creation. Want to put a real dent in outsourcing - add a huge tariff on toll-free international phone traffic.
    NotPanicking

    Answer by NotPanicking at 7:57 AM on Feb. 3, 2009

  • NotPanicking, I've actually thought that one for a long time but not just with toll free international phone traffic but with all goods and services shipped over seas. If they taxed the hell out of more goods and services outsourced then the jobs would stay here because it will not be cost effective to ship them out. Then you have more jobs right here. More jobs, more income, more income more spending big boost in the economy.

    babyfat5

    Answer by babyfat5 at 8:23 AM on Feb. 3, 2009

  • When Obama talked about a tax cut for the middle class he was called a socialist and accused of spreading the wealth around. Why isn't this rose always a rose? I'm sorry I know you said no partisan stuff but that's always been unclear to me.

    Anyway, I don't think that tax cuts alone will pull us out of this mess. Investing in infrastructure is a temporary fix, but I believe the economic down turn is temporary too. The economy, by nature, is cyclical. Obviously this is a larger dip than we are used to, but it will come around. Putting people to work temporarily will get mortages paid, which will help the banks, which will stimulate confidence and lending. We need the banks to feel comfortable lending to get our economy back on track.
    beckcorc

    Answer by beckcorc at 8:23 AM on Feb. 3, 2009

  • That was due mostly to Obama's definition of "middle class." Under his proposal, most tax cuts would go to people who don't really pay taxes anyway - their income is low enough that they are exempt and get all the taxes taken out returned - it's a pretty "tax cut" on paper, but actually doesn't mean a thing. His top end for middle class gradually shifted lower and lower and lower until eventually (as Hillary of all people pointed out) even municipal & school employees in large areas like NY and LA would be topping out of middle class and subjected to a 35% tax rate. By the time they made the last statement, no two income family in any area with a higher cost of living would be "middle class" they'd all be in the "rich" bracket.
    NotPanicking

    Answer by NotPanicking at 8:27 AM on Feb. 3, 2009

  • more corporate welfare
    Anonymous

    Answer by Anonymous at 8:29 AM on Feb. 3, 2009

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