This is one of those days that has been really productive, but a couple things are driving me crazy, so here’s the brain dump:
1. Tax rebates. The latest word appears to indicate that Congress may approve tax rebates for everyone, to try to get us to spend our way out of a possible recession. I , for one, believe a recession is already here. Tax rebates will only raise the deficit, drill some more holes in the foundation of our economy, and not do much for overall consumer spending. Besides, with recession looming, if I get a check in the mail, I am not going out to spend it all on some new gadget. I would pay down any outstanding debt on credit cards, or save/invest it. If you are one of the unlucky people caught up in the mortgage crisis, then the money you get from the Feds will go to try to keep your house out of foreclosure, not for a new washing machine. This is a silly, showboat political trick in an election year that will cost us huge down the line.
2. Tax Cuts and Making Them Permanent. Here’s another harebrained Washington reactionary plan- make sure all the Bush tax cuts are permanent. Everyone hates to pay taxes, but guess what? We all really like having governmental infrastructure around, going to the Smithsonian for free, and making sure the National Guard/Army is around when we need them. I am more than happy to pay taxes , as long as I have some small assurance the money isn’t really an elaborate Ponzi scheme to keep governmental contractors wealthy. I want honesty and integrity and a measure of self- control with funding the silly stuff from Congress. But don’t give me a tax rebate or reduction if you need the money. We have serious fiscal problems- keep the budget in balance.
Thank you for your time and attention.