Tacit Support of Lower Taxes?

I am struggling to understand why the Democratic Party, which has been fundamentally opposed to lowering taxes, would support an economic “stimulus” plan which includes giving returning money to the people who earned it rather than keeping it in the coffers of the thieving omniscient federal government?

Isn’t this admission that letting people control their own money actually helps boost the economy really just tacit acknowledgement that lower taxes and less government create prosperity? If so, then why do Democrats (and Republicans) continually ask for more and more of our money at every level of government?

Other than the alleged “eight to sixteen-hundred dollar” tax rebates that we’ll receive from this stimulus plan, I have an extremely limited (read: no) knowledge of what the plan entails. However, I do tend to operate under the belief that anytime you can get your money back from those money-grubbers on the Appropriations Committee, it’s a good thing.

Speaking of tax rebates and how they stimulate the economy, any thoughts on when the legislature might help out the taxpayers and give us back the money that Sonny decided we didn’t deserve?

25 comments

  1. RoswellJim says:

    I hate to keep beating this drum, but I’m still curious about the amount collected and distribution of money generated by the 5% uplift in traffic citations used to pay for Joshua’s Law.

    As you can see from the following story, driver’s education money in Georgia has been squandered (i.e., returned to the general fund) by the commission that has yet to fund even one course in a public high school.

    Who benefits from this delay? It seems to me that the main beneficiaries are those private companies that charge hundreds of dollars to provide the training that the General Assembly said would be provided by high schools.

    FROM The Atlanta Journal-Constitution
    Published on: 04/07/07 — “The law also created a nine-member Georgia Driver’s Education Commission, which is authorized to accept a 5 percent surcharge on traffic violations such as speeding and driving under the influence to start up a statewide driver’s education program in public schools.
    The surcharge has generated $11.9 million since collections began in May 2005, according to the Governor’s Office of Planning and Budget. Since then, the commission has requested only $2.7 million. The remainder of the money has gone back into the state’s general fund and cannot be used by the commission for driver’s education.”

  2. Doug Deal says:

    Jace,

    It’s easy why Democrats support it. A tax cut means that they reliquish “first dibs” on a larger portion of your money. With a rebate, they are still claiming your money as their own, but they are then able to buy your vote with it.

  3. Tea Party says:

    Timely post-Just got off the phone with NY based financial types discussing the Fed effort to stimulate the economy by returning our own dough.

    First, CNN poll shows 53% of recipients of their money would use it to pay off debt. Implies only half of the stimulus will be available for spending. I think even less will goto buying that HDTV, etc.

    The consensus of the group in my call, a stimulus plan is like giving adrenelin to a critical cardiac patient, helps fast, but does nothing to resolve the underlying disease issues.

    Dem and the GOP leadership spend time with partisan politics while the big economic issues such as: Mounting budget and trade deficits, inflation, gov’t spending at all levels, line item veto, etc., are left untreated.

    I remain hopeful our leaders direct their considerable talents toward looking beyond this fiscal quarter, or year.

    Fiscal conservatism must be demonstrated to insure that the ‘full faith and credit’ of the US is never questionable. If the US ever loses the ‘faith and credit’ of international investors, we will dispair at our shortsightedness.

  4. LoyaltyIsMyHonor says:

    Jace,
    The Democrats are supporting it because there’s no provision in it that makes the 2001/2003 tax cuts permanent. Essentially, it seems like both sides have agreed to eventually let the cuts expire.

  5. LoyaltyIsMyHonor says:

    BTW, good time to buy dividend-paying stocks whose dividends don’t qualify under ’01 tax cuts; ie REITS, power companies, capitol investment stocks, royalty stocks. The value of those stocks will rise as the qualifed dividend-paying stocks are stripped of their benefits.

    Of course, the Capital Gains tax will rever to a higher level…so be careful when you sell.

  6. Doug Deal says:

    Tea,

    Even if the money is used to pay off debt, it frees up the burden of that debt, which means that the individual has that money available again to spend that would otherwise go to paying off the debt.

    The initial allocation of the money is meaningless as to the effect on the economy unless it is going to sit under a pillow in your guest bedroom. Even money in the bank would be used by the bank for investments in other areas of the economy.

  7. StevePerkins says:

    Does anyone have a link for any online “calculators” showing the effect of the Bush tax cuts on a person in a given income bracket? For all the talk about how the benefit did or did not go to the top-1%, I really have no idea what the tax cuts expiring would mean for me personally. I’m definitely interested in knowing.

  8. Jace Walden says:

    I am all for getting my damn money back. And I fully support that provision of the stimulus.

    I just wish elected officials would take this one step further and institute permanent tax reform.

  9. CobbGOPer says:

    “A tax cut means that they reliquish “first dibs” on a larger portion of your money. With a rebate, they are still claiming your money as their own, but they are then able to buy your vote with it.”

    Bingo. Hit the nail on the head.

  10. Dave says:

    I want to get my money back, too. The problem is is that those who never paid a dime in taxes will also get that $800, too. Income redistribution to the non-contributing parasites. That’s redundant, isn’t it?

  11. Dave says:

    The reason I say that, Hero, is that I had a friend of my dad’s who sold a lot of his stuff in the mini-crash of 1987 and later regretted it when the market rebounded.

  12. Ms_midtown says:

    RELEASE OIL from the
    STRATEGIC PETROLEUM RESERVE for domestic refinement and consumption.
    That will stimulate all of us.

  13. bowersville says:

    Or drill for oil off our shores or in the oil fields of Alaska and use our domestic resources for our domestic usage…that will eliminate the need for foreign oil.

  14. Dave says:

    We are the only nation in the world that has been prohibited by the environmental freaks from tapping into known supplies! What a crock of s**t!
    It’s just sitting there off of both coasts. It’s in Alaska, it’s in the Gulf. And yet we still continue to send soldiers to die in a hate-filled region of the world that would be better left alone. Unbelievable!

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