One of the popular ways that insanity can be defined is "doing the same thing over and over again, expecting a different result." Each time I hear the Congressional Republicans call for more tax cuts, this comes to mind.
Once again, the Republican proposals are dominated by tax cuts for corporations and a reduction in the capital gains tax. The Democrats need to stress the fact that consumers and corporations are not spending the money that they already have; giving them more money will not help the economy much. I recall reading a survey of recipients of last year’s Bush checks which showed that they spent only 20% of the money; they saved the rest or paid down debt. Therefore, let's put the tax cuts in the hands of those who will spend the money, and inject the money back into the economy.
The GOP members in both houses of Congress continue to demand a decrease in spending, and to pick apart the recipients of government funding. Why is it that Republicans are getting away with arguing that spending on certain categories (school snacks, weatherproofing, etc.) doesn’t constitute stimulus? Have they never heard of second-round spending or multiplier effects? We've tried it their way, and it didn't work. Now it's time for a new vision.
Government procurement ensures that something is actually purchased, and that someone is actually paid for it. It ensures that demand for goods and services is greater than it would have been otherwise. All of this money goes straight into the economy, and into paychecks. Tax cuts provide no such control. Nobody has any idea what people would do with tax cut money under current circumstances, but logic and recent history suggest a high propensity to save.
Now President Obama is taking his case to the people of America. He will hold a prime time press conference Monday night, and will be in Indiana Monday and Florida Tuesday for town hall meetings to tell citizens about his solutions to the economic crisis. His choice of states is compelling, as these were states that went blue for the first time in several years. This sends a clear message to Republican Congressmen that their obstructionist position and their stale and time worn cry for tax cuts could be costly.
I applaud President Obama for walking the walk, and attempting to craft a bi-partisan bill. I’m all for bi-partisanship. However, it appears the Republicans see it as a sign of weakness. Taxpayers who have lost substantial value in their 401(k) plan and/or their home, who are losing their jobs, paychecks and healthcare, want them to step aside and pass the Obama plan as it was meant to be. And the Democrats in the Congress should get off their knees, stand up, and just say “ENOUGH” to trying to appease the more-tax-cuts crowd! It's time to stop the insanity!!