Support A Tax Holiday

by Sal on December 1, 2008

in Economy,Election 2010,Politics

Rep. Louie Gohmert (R-TX) of the Conservative Republican Study Committee is proposing an alternative to the Auto Industry bailout and Economic Stimulus packages, as well as the remainder of the Paulson Bailout money that has yet to be authorized by Congress.  His plan is to use the remaining $350 billion allocated from the bailout money and instead give all taxpayers a two-month tax holiday.  That would mean no payroll taxes or no income taxes for January and February of 2009, saving the average taxpayer making $50,000 / year about $2,000.00.  Because FICA taxes would also be suspended, businesses would get a tax break that they could allocate for investment and other purposes.

The plan is brilliantly simple, does not cost the government anything (as in the rebate checks that have been used in past stimulus packages, which cause the government to expend money to return your money), and would provide a huge stimulus to the economy.  Of course, Democrats will probably oppose it as “Tax Cuts for the Wealthy.”

Gohmert will introduce the legislation next week.  RedState has put up a petition for this piece of legislation.  It is a long shot to get passed given the current congress, but part of the job of Republicans over the next two years is to propose sensible alternatives and publicize them as much as possible.  Who knows, with enough pressure, we may even get some good items passed,  If not, we’ll have plenty of ammo for 2010.

{ 1 comment… read it below or add one }

Ryan December 1, 2008 at 5:20 pm

From what I’ve read and heard, this plan is pretty solid. I don’t think it passes in any meaningful way, but I agree with your point about ammo for 2010 — the Conservatives are the idea people in the Republican Party and this idea is a perfect limited government, market-oriented way to help small business out.

These bailouts have a nasty habit of keeping poorly behaved big businesses alive at the expense of the well-behaved small businesses. The average taxpayer would benefit from the holiday too, but giving smaller businesses a little extra money to invest and take chances would shake the current situation up in a positive way. Smith vs. Keynes is a really simple choice. I’d pick Smith every time.

Anyway, it’s gotta be better than where we’re going.


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