The Wall Street Journal reports today:
The Obama administration is betting that an extra $8 a week in most Americans’ paychecks will boost consumer spending and help pull the U.S. out of its downturn.
The $116 billion in tax credits for 95% of Americans will come largely through reduced tax withholding from paychecks, over two years, rather than one-time payments.
The idea: let money trickle out to consumers so it feels like a permanent income boost.
But its not!!! The tax cuts the Obama Administration put into this bill and said were completely non-negotiable, are completely temporary. They expire in two years. The 2001 President George Bush tax rebates, and the 2008 President Bush tax rebates both completely failed because they were both temporary measures. The Obama Administration tax cuts repeat the exact same Bush Administration mistake.
Their is an alternative to the Bush-Obama Bailout Parade. Not all tax cuts are created equal. Permanent tax cuts have a strong track record of increasing economic growth. Instead, the Obama Administration’s temporary tax cuts are going to be just a complete $116 billion waste.