"Stimulus" = More Big Spending
By Ernest Istook Posted in Congress — Comments (12) / Email this page » / Leave a comment »
Stimulus is Washington’s code word for a spending spree and government giveaways. Most of the proposals we're hearing fit that category.
To help low-income Americans, Congress should stop passing laws that make everything more expensive for consumers. Congress created the red tape that is strangling health care and making it unaffordable. Congress made energy prices higher by placing tons of domestic oil and gas off-limits and blocking nuclear power. And the new energy bill will send the price of cars, gasoline, and even food further through the roof.
Read on . . .
(Read "The High Cost of Congress".)
The mantra we hear of a "timely, targeted and temporary" stimulus tries to substitute repetition for common-sense.
Insisting that tax relief is only temporary should be a non-starter. We boosted the economy in 2001 by making a permanent and retroactive reduction in taxes. (That included lowering the 15% bracket to 10%.) We didn’t send checks just to buy votes, although they had to be part of the political compromises involved. They were early refunds based on the lower retroactive tax rates. The stimulus wasn’t the checks, because people used those to pay debts, not to build the economy. The stimulus was permanently lowering taxes. And it worked. Except that non-conservatives insisted that the tax cuts had to be temporary.
Now the temporary tax cuts are nearing their end, and it's reflected in the economy. America’s businesses are looking for a signal that it’s okay to invest and create new jobs again. Right now, they hold back because they know taxes are going up within two years since Congress has refused to make that tax relief permanent. Businesses aren't just responding to the mortgage industry problems. They're preparing for the body blow that they know is going to hit them soon, as well as the consequences of a liberal-dominated Congress.
If we use our resources for short-term fixes, we don’t have resources left for long-term problem-solving (except by even more deficit spending)