Pelosi Wants More Rebate Checks
She says the economy hasn’t been stimulated enough and that Americans need another big, fat check from the government.
WASHINGTON (Reuters) - House Speaker Nancy Pelosi on Tuesday called for a second economic stimulus package and said President George W. Bush is “in denial” about the U.S. economy, drawing a sharp White House response.
Tax rebate checks are in the mail to millions of Americans under a $152 billion economic stimulus package passed by Congress earlier this year and signed into law by Bush.
“It’s clear there is a need for a second stimulus,” Pelosi, a California Democrat, told reporters at a news conference.
“The president has for a long time been in denial on the state of the economy,” she said.
Bush, backed by fellow Republicans in Congress, has indicated he wants to wait and see how the first stimulus package works before looking at another one.
“I don’t think that we have that amount of time,” Pelosi said. “There are indications that this downturn is steeper than it was when we created the first stimulus package.”
I think that last statement from Speaker Pelosi can be translated as “there isn’t enough time before the next election to take credit for another check from the government.”
But what’s interesting is what Pelosi is tacitly admitting here by calling for more rebates in the name of economic stimulus. If letting Americans keep more of their tax dollars (which is what the rebates do in a round-about, one-time way) is good for the economy why not make the rebates a permanent thing with tax cuts?
If we reduce the rate of federal taxation would that not in effect be a permanent “rebate” in that less money would be going from Americans to the government? A “rebate” that would actually cost less in that there would be no administration costs associated with collecting it and then redistributing it back to us?
I understand why liberals like Pelosi like the tax rebates because given that the rebates don’t go back to citizens in proportion to the taxes those citizens paid in its really just wealth redistribution, but the idea that more dollars in the hands of the private citizens means more economic activity is a sound one.
Why not expand on that and cut taxes?
I suspect that most Democrats, including Pelosi herself, don’t have a good answer for that.












