Yay, Rebates … Sort Of

CONGRESS, WHITE HOUSE AGREE TO ECONOMIC STIMULUS PACKAGE

FITSNews – January 25, 2008 – We should probably be happy that the federal government has agreed to put $150 billion back into the economy later this year, but given the way Republicans and Democrats have conducted themselves in Washington, well, pretty much forever – forgive us for not being overly-optimistic. Congress still blows way too much money of our money on stuff we don’t need, and if it had placed a legitimate cap on spending years ago we wouldn’t be sitting around today wondering why the economy is sucking wind like John Goodman in the Boston Marathon.

Anyway, here’s the skinny on the tax rebates Americans can expect sometime this summer:

Individual taxpayers would get up to $600 in rebates, working couples $1,200 and those with children an additional $300 per child under the agreement. In a key concession to Democrats, 35 million families who make at least $3,000 but don’t pay taxes would get $300 rebates. The rebates would phase out gradually for individuals whose adjusted gross income exceeds $75,000 and for couples with incomes above $150,000. Contributions to IRA and 401(k) retirement accounts and health savings accounts would not count toward the income limit.

“This package will lead to higher consumer spending and increased business investment,” said President Shrub. Except it probably won’t. Most people are going to use that money to pay bills or pay down their debt, which doesn’t do anything for consumer spending or business investment. Anyway, we suppose that’s still better than Congress blowing it on this guy’s bridges. Or this guy’s bridges and golf courses.

One thing the President can do to actually stimulate business investment would be to index capital gains taxes, which doesn’t require Congressional approval and would free up businesses to expand their operations and hire more workers. Oh, and before a bunch of whiny-ass liberal politicians start playing the “class warfare” card, let’s not forget that one of the keys to the economic explosion of the 1990’s was Bill Clinton’s decision to cut capital gains taxes.

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