Sunday, August 02, 2009

How to Expand the Economy


I firmly believed that the "cash for clunkers" program was a clever way that our beloved government could say that they were taking action without having to take action because I thought that their definition of a "clunker" eliminated about everyone. It turns out, instead, that there are a lot of "clunkers" out there that do qualify and people are cashing in.

Our liberal pols are probably getting a few bruises from all the congratulatory and self-congratulatory pats on the back they have been passing around. Wonderful, successful program they are all saying.

I say, "Great!" Glad they are so successful. So why not expand the basis behind the program to the entire economy and see what happens? "Cash for clunkers," along with the first-time homebuyer credit, is a targeted tax rebate. In effect, it allows people to do what tax cuts do: keep more of their own money and use it as they see fit. If these limited, targeted tax breaks are so great for the automotive and housing sectors of the economy, then why not maintain low tax rates, expand tax cuts where they can be made, and watch the economy really expand? I think that this is a grand idea, so while your liberal Congress-folk are home, why not ask them what they think?

Sadly, the real liberal story is already leaking out...

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President Obama may have to break his campaign pledge and raise taxes on middle-class Americans to pay for public health care and the growing deficit, an eventuality that administration officials touched lightly on Sunday as they promoted an economy emerging from recession.
With an expected deficit next year of $1.8 trillion, and spending still being planned for a $1 trillion, 10-year health care reform, officials say something will have to be done to prevent further erosion of the economy.
"We will not get this economy back on track, recovery will be not strong and sustained, unless we ... can convince the American people that we're going to have the will to bring these deficits down once recovery is firmly established," Treasury Secretary Tim Geithner said on ABC's "This Week."
Asked point blank whether it was right to suggest it is a matter of when, not if, taxes will be raised, Geithner responded, "It is absolutely right." ("Obama Officials Don't Dismiss Possibility of New Taxes," FoxNews, 8/2/09)
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See Congress? See Congress raise taxes? See the economy tank?

3 comments:

ChuckL said...

From my sister:

I'm not so quick to offer my congrats for the "success" of the "cash for clunkers" program, since it's costing me (and all of you) through our ever-precious tax dollars, and now it looks like they want to suck more of those precious resources out of us to give more Americans the "opportunity" to go more into debt. If you couldn't afford it before the program, you probably STILL can't really afford it!

I would like to make my own personal prediction..........we will see a sharp rise in auto repos in six months to one year.

BUT - our illustrious government has helped our economy by boosting auto sales. Oh yeah, if the government doesn't come through with the rebate payments to the dealers, and the consumer financed their new vehicle through the dealer, they can then tack on that unpaid $4,500 "rebate" to the consumer's loan. Of course, that means that those who have new car loans (who couldn't really afford them to begin with), could potentially see an increase in their monthly payments.............and here's the shocker................THAT THEY CAN'T AFFORD!!!!!! There inlies the basis of my prediction.

Oh - there's another little glitch with this program. Somehow, our illustrious "leaders" didn't expect the majority of new car purchases to be foreign (Toyota, Honda, Nissan), so they're talking about restricting new funds to be directed for "American-made" autos only. But wait.....my Camry was built in Tennessee. Isn't that discriminatory? I helped the American economy when I bought my Camry in 2004, even though it's not an "American" car.

Just like any person BORN in USA is an American citizen, it stands to reason that any vehicle BUILT in the USA should be considered American-made.

Well.........I guess that's enough from my soapbox today!

When are the citizens of this country going to WAKE UP?!

~dlb

SkyePuppy said...

It really irks me that the Feds are taking my precious few tax dollars from my paychecks that keep food on the table but aren't enough to keep a roof over my head, and they're giving my dollars to people to buy new cars that they don't need, when I can't afford to have my 130,000 mile checkup (just an oil change, thank you).

ChuckL said...

There are a lot of irksome things going on, to be sure. How's the classes going?