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To: SeattleBruce

No “stimulus” bill would have been big enough - because the “stimulus” is being applied in the wrong way. If the Federal Government, instead of borrowing into the foreseeable future and beyond, has simply said, “We are suspending the collection of ALL income taxes, both individual and corporate, for the next three years”, it would have cost them much less, and the economic growth resulting from that suspension would have more than paid for the total rebate within a decade.

One way out of debt is to GROW your way out of it. Raise your income to such level that there is more income than outgo.

Or reduce the amount of the outgo. That is where the real sacrifice comes.


25 posted on 07/08/2009 7:45:46 AM PDT by alloysteel (Never let an inanimate object know that you are in a hurry.)
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To: alloysteel

Actually, the best stimulus that could have been enacted would have been a suspension on the collection of FICA. Many people in lower-income jobs don’t pay income taxes - at all. But they still have to pay into FICA - as does their employer.

Even Keynes warmed to this idea in the 40’s.

But we have to admit right now that most stimulus plans that put money into people’s hands won’t be going back into the economy quickly. People are going to use tax cuts/rebates to a) pay down debt, b) save. Which, in itself, is good, but it is not all that economically stimulative.


58 posted on 07/08/2009 12:38:29 PM PDT by NVDave
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