Yesterday Barack Obama released a Stimulus Plan for the Economy. It’s good news that Democrats are focusing more on the Economy. It is a strong point for us versus the Rethugs and we need to get more attention on it!
Obama’s plan consists of mailing out $250 checks to poor, middle income, and elderly people. He’s got the right target, but he’s using the wrong ammo. We need a structural, permanent tax cut to that demographic. The best way to do it is by cutting withholding & payroll tax rates...so people see their paychecks go up immediately. A permanent, on-the-paycheck tax cut will let people know that they can change their permanent spending behavior.
As we move into the Bush Recession, there will be more calls for "stimulus". Taking a page from the Right’s method of using a temporary crisis to enact a permanent change, we need to stay focused on how Progressive Ideas are the best Economic Stimulus of all:
- We need to
lower taxes on poor people before rich people. This is because poor people spend more...dollars to those households go right back into the economy.
- We should
avoid one-time rebates and push for permanent tax cuts...beginning with the poorest families.
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Don’t fall for the Club-for Growth meme that we need to increase "investment". This is a code word for "tax cuts for the wealthy" because that’s who does the "investing" in this economy. To avoid a long recession, we need spending, not investment. This means tax cuts for the poor, not the rich.
I realize that Taxes are a large, important issue. They deserve a hundred diaries. I wanted to get the ball rolling on the idea of Stimulus Packages...this will not be the last time we hear about them and we need to have our ideas for them ready.