Republican Stimulus

by Sal on January 23, 2009

in Economy,Politics

Senate and House Republicans unveiled their own stimulus plan today.  The GOP Plan has a completely different focus than the spend-fest crafted by The One.  The bill as designed by house Republicans would include:

  • Cutting the two lowest marginal tax rates, moving the 10% bracket to 5%, and moving the 15% bracket to 10%.  Because the tax system is progressive, cutting these rates would give all Americans who pay Income Taxes a break.
  • Provide tax deductions for small businesses
  • Ban the raising of taxes to pay for new spending
  • Make unemployment benefits tax-free
  • Give Home-buyers a tax credit on their down-payment if they put down at least 5%

These items have a much better chance at stimulating the economy than the Democrat plan, but I would add:

  • A reduction of the Capital Gains Tax
  • A reduction or elimination of the Corporate Income Tax

These items would truly stimulate the economy, and provide an influx of capital and more income to businesses and individuals alike, and it could all take effect this year instead of years down the line, as is the case with the Obama plan.  Plus, this plan does not contain non-stimulating pork items, such as one pointed out by the House Minority Leader, John Boehner:

I’m concerned about some of the spending that’s in there.  How you can spend hundreds of millions of dollars on contraceptives? How does that stimulate the economy?

Indeed, how does spending money on contraceptives, “green” energy, and other such pork items actually stimulate the economy?

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