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Saturday, January 19, 2008

Democrats Want To Give Tax Rebates To People Who Pay No, Or Very Little, In Taxes

Whenever liberals start carping about “tax cuts for the rich,” I respond by saying that with “the rich” paying nearly all of the taxes in this country it’s sort of hard to give the “poor” any tax relief at all.  After all, you can’t exactly cut or rebate something that doesn’t exist in the first place.  Or is such a small amount as to be insignificant.

But that doesn’t stop the Democrats, and their always faithful liberal mouthpieces in the media, from demagoguing an economic stimulus package that includes tax rebates for “the poor.”

WASHINGTON - The poor are the people most likely to spend a tax rebate, if they are handed one in an economic revival plan. Whether that happens depends on who prevails — the White House or the Democrats who run Congress.

You gotta love that last line.  If Bush gets his way, the poor don’t get any help.  That’s a fair assessment, right?

Ok, enough sarcasm, the article continues:

Democrats want to make sure rebates get to more of the poor, including those who have jobs but earn too little to pay income taxes.

The idea is the more that people spend, the more it will energize an economy threatening to slide into a recession for the first time since 2001. According to many economists, the lower that people are on the income ladder, the more probable it is that they will spend a rebate and spend it quickly — just the shot for the ailing economy. These people are more likely to be living from one paycheck to the next, without other assets to draw on.

Basically, what the Democrats want to do is not so much tax relief as it’s just giving money to “the poor” who paid very little in taxes in the first place.  Obviously, everyone (the poor included) pays payroll taxes, but are the Dems really suggesting we take money away from Social Security and Medicare?

The best way to handle this would be to do an income tax rebate back to every citizen in proportion to the amount of income tax they paid in the first place.  Perhaps a rebate in the amount of the percentage paid in.  That would be fair, though those who paid little or nothing in would get nothing back.

Of course, if any rebate is to truly stimulate the economy it needs to be coupled with supply-side tax rate cuts as well.  Any economic stimulus driven by a rebate will be ultimately short-lived.  The key to long-term economic stimulus is to ease tax burdens on productivity, which is what the income tax is.

Comments

Typical Democratic thought process: People who pay taxes will get some of waht they paid back in the form of a rebate. But - that not fair to those who don’t pay taxes. They won’t get anything.

So, let’s give them some free money - that comes from those other taxpayers.

They should look up the definition of “rebate.”


Election ‘08 - We Are So Screwed

Pilgrim on January 19, 2008 at 01:50 pm

The new, made up, deceptive term is “Fully Refundable”, which apparently means a refund for money that was never yours to begin with (ie welfare).  I don’t mind Bush’s plan to eliminate the 10% tax bracket.  At least then the money would be going back to people who paid some in.

electnixon on January 19, 2008 at 02:35 pm

The tax plans should be geared towards earning more.  Giving money back in a one time payment isn’t as good as letting people know that if they earn more they will keep more.

That encourages people to go ahead and invest hoping to be able to keep a larger share of their profits.

The first step is making the Bush tax cuts permanent.


What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.


The Whistler's signature
The Whistler on January 19, 2008 at 03:01 pm

Democrats want to make sure rebates get to more of the poor, including those who have jobs but earn too little to pay income taxes.

The idea is the more that people spend, the more it will energize an economy threatening to slide into a recession for the first time since 2001. According to many economists, the lower that people are on the income ladder, the more probable it is that they will spend a rebate and spend it quickly — just the shot for the ailing economy. These people are more likely to be living from one paycheck to the next, without other assets to draw on.

Wow, what an idea re-distribution of wealth. Great plan by the leftards. This is just the begining of what is going to happen if you get a democrat in charge of all three branches.


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goon on January 19, 2008 at 04:19 pm
Avatar for Will

I thought the whole point of the rebate was to provide a short-term stimulus to the economy, in the form of consumer spending.

If you give a $10,000 rebate to someone who makes $500,000, that’s just a rounding error in their checking account.  But if you give $1000 rebates to 10 people who make $50,000, you’re going to have a real impact on each one of them.  Most of that money will flow right back into the economy.

Forget liberals’ tendency to want to help the little guy; this is just the best bang for the rebate buck.  Even rich people benefit if it keeps the economy from turning south.

Will on January 19, 2008 at 04:39 pm

The poor are the people most likely to spend a tax rebate, if they are handed one in an economic revival plan.

Which is exactly why they are poor in the first place… and will still be long after their rebate check is spent.  Stupid decisions come with consequences… consequences which are not the financial responsibility of the rest of us.  In essence, the Democrats are trying to not only buy the votes of the poor, but to burden them with the so-called “economic recovery” as well.

Speaking of Democrats, take a good look at the full AP article.  Read through it carefully.  Notice anything that’s missing?  How about “PayGo” that famous Democrat vow from a year ago that all federal spending initiatives must be fully paid for because deficits, such as those supposedly caused by the Bush tax cuts are evil.

Look through the economic wisdom of Barack Obama, or Hillary Clinton, both of whom have advocated giving away taxpayers’ money by the bushel of late.  Not a peep about where all that government largesse is coming from, much less why a Democrat’s deficit is suddenly acceptable, when that of a Republican president is not.  All of a sudden, nobody on the Left is familiar with the word “deficit”.

The simple fact of the matter is that Democrats are right back to their old Keynesian tax and spend, deficits-don’t-matter tricks… just like we predicted they’d be.  There is NO recession.  But it is a very convenient excuse.


“Poverty of goods is easily cured; poverty of the mind is irreparable.”

Bat One on January 19, 2008 at 05:20 pm

Will’s got a point.

Carrick on January 19, 2008 at 05:20 pm

The poor are the people most likely to spend a tax rebate

Is this suppose to be some kind of mind-blowing revelation. Someone drops money you didn’t earn in your lap, and they expect people to treat it like they worked for it.....


""That’s the problem with you lefties, you’re not willing to get your hands dirty. I’d suggest you roll up your sleeves.”

-Jack Bauer

Hoss on January 19, 2008 at 06:41 pm
Avatar for Socialist

This is all a bunch of horseshit anyway. All that a tax cut is going to do is shift more debt from private to public and run up the national debt even more. There will come a day of reckoning, much like the Republican controlled roaring 1920’s. Just as in the 1930s, socialism will once again cure the ailments of run-away capitalism and balance things out for awhile until people once again forget the lessons of history.

Socialist on January 19, 2008 at 07:07 pm

This is all a bunch of horseshit anyway.

Really?  And what exactly is “horseshit” anyway?  The idea of giving money outright to people who haven’t earned it, or the fact that Democrats are once again shown to be economics-illiterate liars with all their pompous pap about deficits and “paygo”?

You can’t rebate, or return, to someone that which they’ve never had to begin with.  And Democrats don’t know shit about economics, and are hypocrites for trying to cover up their ignorance.


“Poverty of goods is easily cured; poverty of the mind is irreparable.”

Bat One on January 19, 2008 at 07:17 pm

If FDR had been less of a leftists, and had even a modest knowledge about economics, the Great Depression wouldn’t have lasted nearly a decade.  It should have been over in two years, tops.  Read Friedman… and Bernanke for that matter, who is an expert on the Great Depression.

Roosevelt wasn’t some liberal hero who beat the Depression, but a patrician autocrat and opportunist for whom the economic situation was little more than an excuse for expanding government control into every facet of American life.


“Poverty of goods is easily cured; poverty of the mind is irreparable.”

Bat One on January 19, 2008 at 07:25 pm

Giving money to dysfunctional slackers only benefits the underground economy.

Kevin on January 19, 2008 at 07:37 pm

The idea is the more that people spend, the more it will energize an economy threatening to slide into a recession for the first time since 2001.

Isn’t that what Reagan preached about tax cuts? Suddenly with a chance to give money to their voters the Demmi’s rediscover reagnomics. LOL....

richNJ on January 19, 2008 at 09:39 pm

rich: Depends on where the money comes from; if it’s taken from more productive people and is given to less productive people, it’s a net loss.  BTW, tax rate cuts aren’t handouts.  They are fundamentally different.  Tax rate cuts generate more revenue, while handouts eat up revenue.


If you don’t know by now, don’t mess with it.

robert108 on January 19, 2008 at 09:42 pm

I thought the whole point of the rebate was to provide a short-term stimulus to the economy, in the form of consumer spending.

So why should the gov’t give away the money?  Why not just spend that much more themselves?  That seems to be something that both parties seem to be able to agree on, just as long as each congressman gets his on share of the pork.

The poor are the people most likely to spend a tax rebate

I’ve already started shifting investments to car title loan companies, liquor stores, and Warner Lambert (maker of Sudafed).

electnixon on January 19, 2008 at 09:42 pm

Giving handouts to unproductive people is like getting one shot of meth; it feels good for a short time, then you end up lower than when you started, which is why the Dems have to keep feeding the addiction to “free money” with continued spending.  Eventually, you have to kick the habit and get back to sound economic principles, like the investment cycle.  Spending is for discretionary income, not basic survival income.  Socialism always leaches the calcium from the bones of the economy, figuratively speaking, resulting in something I like to call “economic osteoporosis”.


If you don’t know by now, don’t mess with it.

robert108 on January 19, 2008 at 09:50 pm
Avatar for luc

while i am all for the government putting tax dollars back into the hands of the people that paid them it think that this stimulus plan will do little to turn around the economy.  we all now that are fortunes are tied to the price of oil.  what the president should do is declare a national emergency and open up drilling in anwar and off the coasts and flood the market with oil, that inturn drops oil prices and will help all americans.  i would also like to see some lawsuits against the liberal special interest groups that are preventing us from drilling, tie them up in court on defense and their money reserves should dry up considerably.  while it would take a few years to implement and see the full benefits i feel it is a much better way to stimulate the economy while not screwing up the value of the dolllar anymore than it already is.

luc on January 21, 2008 at 06:22 pm

Socialist - All that a tax cut is going to do is shift more debt from private to public and run up the national debt even more.

Stop lying. That’s what you are going to do. The spending is on socialist programs that you endorse. So stop lying.

As for the poor spending this “rebate” - what, the rich don’t spend money? The argument is hogwash. The rich spend and invest their money. That the poor would spend it faster and that this short shot in the arm is supposed to help our economy is an argument on faith. The rich spend and invest their money or they lose it to inflation.

likwidshoe on January 22, 2008 at 07:22 pm

The rock of election year politics and the scissor of fiscal responsibility.

We know the rules of that game.

WOOF on January 22, 2008 at 07:46 pm

Socialist - All that a tax cut is going to do is shift more debt from private to public and run up the national debt even more.

The so-called “tax cuts” are really tax rate cuts, which actually produce more revenue, thus making them tax increases.  Duh.


If you don’t know by now, don’t mess with it.

robert108 on January 22, 2008 at 08:50 pm
Avatar for Darla

One thing I have learned is most people spend alot of time and energy expressing their point of view. Reading these posts has convinced me even more so. Alot of you are convinced your point of view is true. But...........perception like beauty is in the eye of the beholder. So what is true to you is not true to someone else.
Calling poor people things like dysfunctinal slacker is once again just someones point of view. After all you dont know anything about that person. That person maybe was your boss five years ago. But because he had two heart attacks and his insurance ran out he had to liquidate all his assets in order to pay his medical bills in an attempt to restore his health. So before some of you go labeling people who are poor just remember “it can happen to anyone”. Anyone can have unforseen things happen that is out of their control. So before you all go spitting out your point of view be careful of labeling people you dont even know, cause all you are doing is stooping to the level of an eight year old in the process.

Darla on January 25, 2008 at 11:48 pm

So before you all go spitting out your point of view be careful of labeling people you dont even know, cause all you are doing is stooping to the level of an eight year old in the process.

You would do well to take your own advice, first.

Truth is not relative, no matter what your New Age leftie handlers have told you.


If you don’t know by now, don’t mess with it.

robert108 on January 26, 2008 at 01:55 am
Avatar for Fnord Discord

All this rebation money is being borrowed from our loving friend China at 30% interest. Why not just tell Americans to take some money out of their right pocket and put it in their left pocket and they can pay the interest to themselves.

Fnord Discord on April 12, 2008 at 10:21 pm
Avatar for Fnord Discord

All this rebation money is being borrowed from our loving friend China at 30% interest. Why not just tell Americans to take some money out of their right pocket and put it in their left pocket and they can pay the interest to themselves.

Fnord Discord on April 12, 2008 at 10:23 pm
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