Class warfare is alive and well.
Here is the bottom line: Pres. Bush cut taxes for the people who pay taxes. As you can see from the above chart, a lot of Americans are not paying federal income taxes.
I ask again: How can you cut taxes for people who don't pay taxes? Wouldn't it make more sense to give the employer a tax incentive so that he can hire or keep more people? Is a $500 check from Obama better than a job?
Here is a great post: Tax Cut Mirage By Peter Ferrara.
Check this one out:
"THEN THERE IS THE PART of the Obama tax cut that is not a tax cut.
The bottom 40% of income earners do not pay income taxes on net.
The $500 per worker Obama income tax credit will consequently not reduce income taxes for these workers.
It will involve instead another check going from other taxpayers to these workers, which is actually just increased government spending, indeed, increased welfare.
Indeed, another part of the Obama tax cut plan is even more overt.
Obama proposes to include in that plan an increase in the scandal-ridden Earned Income Tax Credit (EITC).
The EITC goes to the lowest income workers, who do not pay federal income taxes, and it is universally recognized as a welfare program.
In this, as in other provisions of the overall stimulus package, Obama and the Democrats are effectively arguing that they are going to stimulate the economy by increasing welfare.
Reagan and the Republicans stimulated the economy by cutting marginal tax rates, providing incentives to save, invest, produce, start and expand businesses, and create jobs (as Kennedy and the Democrats did in the 1960s).
Now Obama and the Democrats claim they are going to do the same by increasing welfare and government spending."
Last, but not least, is any of this "stimulus" going to work anyway?
Thomas Sowell has another great column today. I'd argued that Sowell should be required reading, specially among Democrats who do not understand how wealth is created:
"In short, it can be years before the money that is supposed to stimulate the economy actually gets into the economy.
And nobody knows what the economy will be like when that money finally gets into circulation."
That's right. We may find ourselves with a huge federal deficit and about the same unemployment rate.
