Monday, January 05, 2009

Obama Looking Like Bush On Tax Cuts

Why Tax Cuts Are Not The Answer.

In order to placate the Republicans whose bankrupt economic policies got us to where we are now, the Obama stimulus plan is 40% tax cuts. Sure many families could use the $500.00 or whatever will be given but it does nothing to build our infrastructure and nothing to stimulate job growth.

The legislation Mr. Obama's team is developing with Congressional Democrats will devote about 40 percent of the cost to tax cuts, including his centerpiece campaign promise to provide credits up to $500 for most workers, costing roughly $150 billion. The package will also include more than $100 billion in tax incentives for businesses to create jobs and invest in equipment or factories.

The overall package, of $675 billion to $775 billion, is taking shape as Mr. Obama arrived in Washington and planned to begin trying to build support in Congress and among the broader public for his approach to stimulating the economy.

This idea will have us back in the same spot very shortly. It is an expensive stop gap in what should be a comprehensive plan to fundamentally change the economy. The problem in the United States is that there are not enough skilled high paying jobs. Even white collar jobs such as accounting are being outsourced to places like India. We have destroyed our manufacturing base. Those jobs do not look like they are coming back. America became the consumer society spurred on by high credit lines. That house of cards has tumbled and this rescue plan does NOTHING to rebuild the house. Where are the incentives to bring manufacturing back to this country? Where are the tariffs on imported goods so that we turn free trade into fair trade? Where are the higher tax rates for those making millions? Where is the elimination of corporate tax loopholes which allow most multi national corporations to avoid most taxes? Unfortunately this just seems like more of the same with a more eloquent salesman.

I am very disappointed in what I see so far.

1 comment:

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