Friday, January 18, 2008

A 'Stimulating Package' for Bush

Bush Calls for Economic Stimulus Package - William Branigin @ Washington Post

You know, this is one of the few times President Bush has acted something like a real leader. He's set out a goal, an economic plan amounting to nearly 1% of our GDP, weighted heavily on tax cuts but left the details for Congress, himself and the Treasury Dept to work out. Personally, I'd like to see something much more radical in the sense of slashing middle class taxes in half while closing most, if not all, of the corporate tax loopholes and then flattening out corporate taxes downwards by a few percentage points. Index Social Security taxes and remove the cap at $90,000. Cut a lot of the farm subsidies, particularly for farms that net more than ten million a year to make up the loss in revenue from middle class taxes. Increase food stamp availability while shoring up the subprime mortgage mess by backing the homeowners for a limited time if they fall into a hardship and can't pay their mortgages. There's a lot more than can be done, but the most important aspect is giving the middle class the money and assurances that turn into consumer confidence and thus consumer spending. While tax cuts for the rich work in theory that's generally not how it works in real life in terms of stimulating the economy. It's the middle class that we need to focus our efforts on and I do hope Congress realizes this, or at least does something to alieviate the burden on the middle class.

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