Last spring did little to stimulate the economy, though we were promised that they would prevent the economy from sliding further. They didnt work, because in the end, those who got tax returns used them either oto pay off old debt, or saved it in fear of further economic problems. And out of the small percentage that was spent, most of it was spent on consumer goods that are no longer made in America. Very few people took their 300 dollar stimulus check and used it as a downpayment for a new American made car. Flat screen televisions are made in China, as are most consumer goods these days.
At best the slightly larger tax cuts being given now will have no more of a positive effect on the economy that the last tax rebates.
Tax cuts simply do not work, because you cannot MAKE those who get them spend the money where it is most needed. That is to spend it on things made in America, by Americans, or on projects that can only be done in America, by Americans.
Only government spending can aim spending where it is needed.
Even the much complained about "pork' spending in the current bill would do more to stimulate the economy than simple tax cuts would because it will be spent where it is being targetted to be spent. Even giving out food stamps would do more to help the economy because the money would largely go to American agriculture and create some jobs in that industry.
Tax cuts would create jobs, but almost all of them would be in China
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N.J. of GA 11:41AM February 06, 2009