So everyone is nervous that the economy is slipping into a recession if it has not already. Now everyone, including the democrats are suggesting economic stimulus packages that put more money into the hands of US citizens through tax rebates, tax cuts, or both. Hmmm, when we want to get the economy rolling we lower taxes, we get money into private hands...why is this a good idea now, versus always? If we placed a perpetual bet on growing the economy through lower taxes and more money in the pockets of the consumers, wouldn't we be better off? Seems too easy. Maybe that is why it is so difficult for those in Washington to comprehend.
I had a very good client of mine give me some excellent advice early in my career. He said "bring me projects that are financial no-brainers, because I can usually get those right". Lower taxes is a no-brainer, but Washington rarely gets it right.
BTW, if someone didn't pay any taxes, how can they get a rebate? What is being rebated? I guess a rebate to someone who never paid into the system to begin with is Washington's term for a gift.
As lower taxes seem to be the universal remedy for a slowing economy, it seems to me that higher taxes, like big corporate spending during the economic boom cycle, is simple government over spending. In the private sector that is called corporate mismanagement and greed. In government circles it is called "investing in our future". However, if we were really investing we would see a return once in a while?
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