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Tuesday, January 06, 2009
David Limbaugh :: Townhall.com Columnist
Are They All Democrats Now?
by David Limbaugh
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Barack Obama, itching to implement his gigantic stimulus package as soon as possible, is dangling the idea of combining his spending package with a tax cut in hopes of securing another kind of stimulus: Republican support for his package. Republicans should remember that when you polish manure, you still have manure.

Obama went to Capitol Hill Monday to promote his stimulus plan of between $675 billion and $775 billion. An estimated 40 percent of the package (between $270 billion and $310 billion) would consist of tax cuts.

Obama strategists say the proposed tax cuts are based on historical and empirical evidence of what works, not ideology. But despite his denials, Obama's intention to target the cuts to the "middle class" and exclude higher-income earners, whose stimulated activity has been shown to have the greatest economic impact, betrays his crippling bondage to ideology.

The lion's share of the relief would involve $500 tax cuts per individual or $1,000 per family for income earners and an equal amount in credits for those who qualify for the "earned-income" credit. But he would phase out those cuts and credits for households with incomes of $200,000 or more, which is inexplicable apart from ideology and class-warfare populism.

Also demonstrating his ideological motivations, Obama's plan envisions short-term relief via one-time tax credits or refunds rather than long-term changes to the tax code. As others have noted, long-term changes are far more effective at stimulating growth because producers and consumers look to the long term in making their investment, hiring and spending decisions.

Cash infusions from rebates or credits, especially with today's sluggish economy and people's uncertainty, could be ineffective because recipients might choose to save the money rather than spend it. That is what happened with the 2008 stimulus bill, as documented in a Heritage Foundation paper by Rea S. Hederman Jr., Stephen Keen and Brian M. Riedl. Only a small part of the rebate checks was spent, with large portions likely saved or used to pay down debt.

The John F. Kennedy, Ronald Reagan and George W. Bush tax cuts, by contrast, all involved reductions in the marginal income tax rates and all empirically stimulated economic growth by incentivizing producers. If Mr. Obama could remove his ideological blinders or shed his class-warfare mentality and truly be guided by "what works" (as he promises), he wouldn't even be thinking about targeted or short-term cuts.

But the other half of Obama's stimulus plan is even more troublesome and probative of Obama's allegiance to ideology rather than empirical and historical evidence. Contrary to most history and economics textbooks, Keynesian pump-priming stimulus packages do not lead to economic growth. Continued...

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About The Author
David Limbaugh, brother of radio talk-show host Rush Limbaugh, is an expert in law and politics and author of Bankrupt: The Intellectual and Moral Bankruptcy of Today's Democratic Party.
 
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STIMULUS PACKAGE
Better than Obama's Trillion Dollar boost to the economy...give $1Million to each of the approx. 300,000,000 Americans and we will stimulate the hell out of the economy and save $$$ creating a bigger deficit as well. We could buy health insurance, homes, misc. goodies, cars, fuel, start new businesses, pay off our school loans or go back to school, join a health club and keep in shape...you know, we could do most of what the government enjoys doing on our money. Welfare could be done away with and we would have no homeless. Of course, there would have to be guidelines...no drugs (that ought to help put Mexico out of business), no other addictions...well, there are just so many possibilities that I don't have room for them all here. The last stimulus package didn't work...and I sure don't trust this next one! Of course the bureauracy has always seen fit to confiscate from us and give to others as they choose. We know where the money comes from, but we never know where it goes! It's our money...so give it to us!

Very Few Conservatives Left
The Chosen One aka The Messiah with the glistening pectorals who can do no wrong and walks on water according to many media reporters will save the country from what?
1) Giving out millions of our tax dollars so we can pay for everyone else's kids to get an abortion instead of the parents taking responsibility for their own kids and making the abortion factories a multi-million dollar business at taxpayers expense? Use those millions to create jobs.
2) Franken gave millions to the militant gay rights movement according to news reports even though nobody cares what they do in their bedrooms when that money could be used to keep hospitals open and hospital staff working.
3) Pelosi's irresponsibly spending about $6,000,000 per year jetting back and forth to Washington D.C. at taxpayers expense while that money could be used to keep teachers working.
4) The U.S. Congress should refuse the automatic raises during an economic crisis when people are losing their homes and jobs and food banks are empty and use that money to create jobs.
5) Close the borders and stopping immigrants from coming into our country during war time and during economic crisis which would prevent more foreigners from taking American jobs.
After all, it's the natural U.S. born citizens that paid into this country and everyone else is coming here and going to school and taking our jobs and getting social security, health care, while we are told to sacrifyce and pay more! Perhaps, we should let the liberal democras pay for those programs and the Republican conservatives should all move to Texas and start a new country,
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