Posted on 09/06/2010 7:20:31 AM PDT by tobyhill
With the economic recovery sputtering and the midterm elections approaching, President Obama is considering additional tax credits and tax breaks, additional spending on clean energy and infrastructure — in other words, additional stimulus. But don't call it stimulus! In a recent Politico story about Obama's plans for "emergency fixes to stimulate the economy," the White House press office refused to comment on the scope "other than to say it won't be a 'second stimulus.'"
It's a strange situation. The White House believes the American Recovery and Reinvestment Act of 2009 helped avoid a depression and end a recession, saving or creating about 3 million jobs so far. And most nonpartisan economists basically agree: the $787 billion package of tax cuts, state aid and spending projects helped stimulate economic activity in the short term, which is the whole point of fiscal stimulus. As I wrote in the magazine last week, the Recovery Act is also funding a range of innovative education, health care, transportation and energy policies that will transform the country in the long term.
(Excerpt) Read more at time.com ...
Impeach Obama then run the rest of them out of town.
STEALTHULUS
Vote them out! These anti-American, leftist, economic morons need ousted. They hate America and the exceptional American way of life. Vote them out!
Wonderful non-biased source there, Grunwald.
Obama Economic Team: Stuck on Stupid
Hey DC clown posse, how about doing what actually works for a change?
This sh$t gets tired really fast...
Run them out! They are killing us!
Socialism’s curse...as the effects of it get worse, more and more comes our way to deepen the wound.
It is time to just-say-NO!
“As I wrote in the magazine last week, the Recovery Act is also funding a range of innovative education, health care, transportation and energy policies that will transform the country in the long term.”
You mean like the rat sperm project?
You just keep on downing the kool-aid, CNN.
Grunwald is a foolish, Kool-aid drinking Obamaniac. His article is nothing but a puff propaganda piece for the Zero administration. “... government needs to loosen its belt when families and businesses are tightening theirs ..” what a load of BS. Government loosening its belt for totally wastefully crap projects has resulted in a quadrupling of the deficit and a huge loss of business confidence.
LOL
Not a stimulus? How about “Porkulus 2.0”, “ Son of Porkulus”, “I was a Teenage Porkulus”, or “Porkulus, the Quickening”
YES!
additional spending
NO!!
Tax credits allow for social engineering, not good.
http://www.rushlimbaugh.com/home/daily/site_080210/content/01125108.guest.html
RUSH: Whoa, whoa, whoa, whoa, whoa. Wait just a second. Except none of that happened. The automobile business did not get jumpstarted with Cash for Clunkers, and home sales as an industry did not get jumpstarted with the tax credits. There’s a big difference in tax rate reductions and tax credits. Tax credits... Let’s see if the Volt takes off. Let’s see if a tax credit of $7500 on the Volt causes the auto industry to rebound. The housing industry has not rebounded. All that happened with Cash for Clunkers or the tax credit for home buying is it just shifted auto sales earlier into a quarter than they would normally have taken place. But the auto industry did not take off with tax credits. Tax credits are a much, much different thing than tax rate reductions.
Tax rate reductions do stimulate the economy. They most certainly do. Tax credits, by their very definition, aren’t permanent and they don’t equal any additional disposable income. They just lower the price artificially, and for a temporary period of time. Now, the Obama administration — and I guess some liberals — would love to say that tax rates don’t stimulate but tax credits do. But I don’t see any stimulation of anything. Cash for Clunkers caused some car sales to take place but just earlier than they would have, and the last I looked, housing, there’s nothing to write home about in terms of price values. Home values are still falling, foreclosures are going up, and yet Obama’s offered all kinds of tax credits.
You know, a tax credit is a one-time shot. A tax rate reduction is a policy, a policy change. I don’t think there’s any comparison of the two — and this is a trick that liberal Democrats try to use. “Oh, yeah, we’re for tax cuts! Uh, tax credits.” This is nothing more than an attempt to beguile and to fool people and to make them think that government action moves the economy, that government policy moves activity in the economy. It doesn’t increase it. It might shift it. But tax credits do not stimulate. They simply shift. So it’s not hard to understand. If you understand that liberals lie, if you understand that liberals realize tax rate cuts are the best thing that could happen to an economy and they don’t support them, they want to get in on the notion that they are cutting taxes when they offer tax credits, but they’re not cutting anybody’s taxes. They’re just artificially inserting themselves in the market temporarily and really screwing it up.
BREAK TRANSCRIPT
RUSH: No, it’s simple. A tax credit doesn’t put any more money in your pocket. A tax credit doesn’t add any more disposable income. A tax credit doesn’t expand your buying power. It’s just crazy. All a tax credit does is artificially interrupt the normal flow of economic activity, like Cash for Clunkers. Okay, three grand to go out and trade your old clunker for a new car, right? So you go do that sooner than you would buy a car. The people that are interested in it do it in the third quarter. In the fourth quarter, the program ends and nobody goes and buys a car. The car industry is not stimulated, and then you create the notion among other people, “Eh, I’ll wait ‘til the next tax credit before I go buy one. If the government is going to be passing out tax credits I’ll wait ‘til they do it again.” Now, if the credit were permanent then we’d be talking a different thing, but this is all these people trying to say what Obama’s doing is working. But you can’t fool El Rushbo. Not after 22 years in the Golden EIB Microphone. Not after 22 years running the Limbaugh Institute for Advanced Conservative Studies. Frankly, I’m somewhat disappointed in the effort to fool me. Well, everybody knows that tax cuts don’t stimulate an economy, but we can see Obama’s tax credits do? Right. Do you people think I’m a fool? Do you think that I see economic activity burgeoning out there? We have economic activity? I would be the only one who does, and I don’t.
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