The Bush Tax Refund

Now George W. Bush is wanting to give a $600 per person tax check to all taxpayers. Well, he wants to exclude retirees on SS who don't have $3000 a year in earned income, which will keep several million older people from getting the tax money. Also, there are millions of poorer people who owe tax money to the government, and that tax rebate money that Bush hands out will not go to those people, it will go into the coffers of the IRS. Those millions of dollars won't help the economy at all. If he truly wants to stimulate the economy, the tax rebate should be given to everyone, and a stipulation should be that it cannot be taken by the IRS.

The big thing that I can see, however, is this. We all know that America doesn't have the money to fund this tax refund so we'll have to borrow it. Probably from China. Then the people will spend most of it on items made in China and brought into this country with almost no trade equality. And then we'll have to pay the money back to China. The way I see it, the only people who will benefit from the tax checks will be China. The people who got the tax rebates may have a few hundred dollars of cheap Chinese imports to show for it, but China will win double on this tax deal.

I wholeheartedly agree with your analysis, Don. I won't be getting any of it, so I will just keep on keepin' on. It just means another bill the American people will wind up paying for. Maybe they will just fund it out of Social Security funds. Oh, I forgot, they already used most of that up. Sheesh, one of these days the American people are liable to have another revolution!

Don,
you're absolutely right. Bush is famous for his giveaway programs. You do remember him giving away the wonderful surplus we had.

If he wants to stimulate the economy, he can start by getting out of Iraq. The billions he would save could certainly stimulate the economy, but more importantly, save lives.

Here's what I've been talking about.

"The president and House leaders agreed last week on a proposal to provide rebates to 117 million families and to give businesses $50 billion in incentives to invest in new plants and equipment."

OK, so 117 million times $600 is going to families, and $50 billion is going to business. The split is a bit more to the families, but each family won’t get really enough to do a whole lot with. If I get $600, it means I can pay two months utility bills, or 5 months of cable payments. I can’t buy a new digital television that with a screen large enough for my old eyes to see, even though the government had said that all television signals must be digital next year. So what to do with the $600? Not very much, but like most everyone else, if they send it, I’ll take it.

It’s different for the businesses, however. There won’t be that many of them, so each one will get a lot more money. It's a proven fact that when business gets a windfall like this, they immediately give all of their top executives a huge raise, or perhaps a bonus, and if they create any jobs at all they will be low paying service jobs that nobody wants, so it will create a demand for more illegal aliens to cross our open borders.

Most of the families will spend the money they are given in a hurry, because, after all, $600 is not all that much. And it might help the economy a bit. However, the businesses will tie the money up in board meetings trying to figure out how to spend it, and will invariably do nothing with it for a year or two, wanting to get the interest on the money. After that, there won't be an oversight on the money, so we'll never know where it went.

They tried that "trickle down" stuff already, and it only trickled down a few rungs from the top. The average worker never sees any of the money that businesses are given, but the sales of $2 million dollar plus homes will go up, as will Hummer sale, country club membership, and round the world vacations.

If they are going to give money to businesses, there should be a time limit on using it, and every penny should have to be spent on creating new jobs and not one penny should be used for raises to the executives. They'll get around it by saying that they intended to give them the raises anyway, but I think that wages and bonuses for executives in companies who get tax money should be frozen for a few years. This amounts to giving these businesses a welfare check, and none of it should be used to line the pockets of the people who need it the least.

This is exactly what I've been talking about in the other thread. This is just one more way to give back to the wealthy who gave to campaign funds.

Don,

I agree with your analysis of the Tax Refund, particularily the point about the giving back to Corporate donors. Big business and the wealthy have benefited under the Bush Administration at the expense of the middle class and small business. However, I am not sure that a tax refund will make a big difference. A one time infussion of money does not an economy make, give a man a fish and he will eat today; teach a man to fish and he will eat everyday.

What we need is a balanced budget, our national and personal debt is one of the major reasons for the economic downturn. The US dollar is lower against most currency compared to a year ago, therefore; fuel, housing, food, energy, clothing and other essentials cost more. We need to curtail foolish spending while letting the Bush tax cuts for the most wealthy expire. We can wage war, spend money on boondoggle projects, and cut taxes all at the same time.

However balancing the budget is something that cannot be done overnight. So if we do offer a stimulus program, I would like to see rebates for lower income familes and those on fixed incomes including social security because $1200 will make a difference to them. And any rebates to business should be tied to job creation for US citizens in the USA and nothing more.

Those are just my thoughts.

Lynn

"So if we do offer a stimulus program, I would like to see rebates for lower income families and those on fixed incomes including social security because $1200 will make a difference to them. And any rebates to business should be tied to job creation for US citizens in the USA and nothing more."

Lynn, I agree that a balanced budget should be at the top of the list and that a stimulus package should go to those on fixed income and social security as well as the working men and women of the country. Giving money to the upper income class that will only put it in their bank account won't do anything. We don't have to wonder if it will trickle down, because we know it won't. Starting with Reagan and going through George W. Bush, they've given the most of the rebates and tax money to the wealthy, and look at the shape the country is in. It doesn't work, because they will not let any of the wealth trickle down. They just keep it all, and laugh as the rest of the country does without.

I agree that we need to tie any money given to businesses to jobs that stay here in this country, and we need to further tell all of the companies that have sent jobs overseas that America will no longer do business with them. If they like India and the Philippines so much, they should have to live there for the rest of their lives, and not make any more money from this country.

It's time that the ordinary every day working American once again stood up and told every elected leader that anything they do that is not in the best interests of all of us will get them kicked out of office.

Unfortunately, I don't think Bush's tax refunds can improve the economic stiuation much and the reason is debt. People are overextended; many are tens or even hundreds of thousands of dollars in debt. Many people will put their tax rebate towards paying off their debt, thus having no effect on the growth of the economy. I think America is simply too deep in debt.

That sounds more like the truth Gordon. That's the solution I offer the world in my book!