«--Previous Post | Blog Index | Next Post--»
Taking a Look at Bush's Economic Stimulus
In case you haven't noticed, things aren't going terribly well on the worldwide financial markets. President Bush isn't insensitive to that fact—that's why, a few days ago his administration announced the rough outlines of an economic stimulus plan. And it is going to help everyday folks, not just big business. Tax credits will flow like manna from heaven: $800 for individuals and $1,600 for married couples are the most commonly cited figures (more on that below). "Letting Americans keep more of their money should increase consumer spending," the president said.
Oh, but wait. The Tax Policy Center, a joint effort of the Brookings Institution and the Urban Institute, did an analysis of Bush's plan and found that a number of people (and by "a number of people" I mean millions of people) would be shortchanged. And the poor were the most likely to get the short end of the stick.
According to TPC's analysis, 56 million people would get nothing and another 21 million would get less than the promised $800/$1,600. Bush's stimulus plan only helps earners (as though the unemployed don't need help right about now), but even there it's not so hot. Thirty million earners get nothing, and another 19 million get less than $800/$1,600. That means 49 million working households would get nothing or only a partial rebate.
All of this, plus the rapidly worsening economic news, has forced the White House to admit today that it is open to a larger stimulus package. The hope, however, is that the package is not only larger, but more fairly and evenly spread.
Further criticism after the jump.
From the Center on Budget and Policy Priorities:
The plan is being described as featuring a rebate of $800 to individuals and $1,600 to couples. That, however, is misleading. Only tax filers with incomes high enough to be in the 15 percent tax bracket or a higher bracket could get those amounts. As a result, fewer than half of all households — and fewer than 60 percent of all working households — would qualify for the full rebate.
Households that earn too little to be in the 10 percent bracket would get nothing. The fact that many of these households pay large amounts of payroll tax would be ignored. Families of four making less than $24,900 would be shut out entirely. The Tax Policy Center data show that 30 million working households would receive nothing.
All households in the 10 percent bracket — families of four with incomes between $24,900 and $40,950, and many families somewhat above that range as well — would get only a partial rebate. Some 19 million working households would receive a partial rebate. Overall, 42 percent of working households would receive either no rebate or a partial one.
It's a real shame that middle class and working class families aren't going to get a piece of the pie under the Bush stimulus plan, because (1) they need the help the most, and (2) they stimulate the economy best. As Federal Reserve Chairman Ben Bernanke told Congress, "If you're somebody who has lots of financial assets and you receive an extra dollar, you may not change your spending much because you can simply either put the dollar in your bank account or take out a dollar as you need it. If you're somebody who lives paycheck to paycheck, you're more likely to spend that extra dollar."
Update: If you can't get enough of this sort of analysis, you can find more here.
Comments
Ever notice when debating taxes with Republicans that they think the income tax is the only tax, and those too poor to pay income taxes are getting some sort of free ride.
Better to do nothing.
This is just more fake paper fiat currency.
Posted by: capt on 01/22/08 at 4:20 PM Respond
I suspect GWB doesn't really care- kissing Israeli and Saudi butts seems more important than his own back yard. What with the New Orleans debacle and sub-prime etc., is there an agenda going on here? With friends like Dubya, who needs enemies?
Posted by: Misha on 01/23/08 at 1:41 AM Respond
Just more of Bush's idea of fiscal responsibility (for which he continually chides the Democratic congress). Raid the federal coffers to provide more help to those who need it the least, and little or none to those lowly maggots who need it the most.
I'd much rather see him do something that would actually help to create decent jobs here in the US, and to at least ease the escalating burden on the working class somewhat.
Posted by: DaveD on 01/23/08 at 4:55 AM Respond
More tax cuts that disproportionately help the rich.Cutting interest rates again to make credit cheap and easy.Weren't these brilliant ideas already tried and failed leading to multiple burst economic bubbles within a few years of each other.I wonder how this will be spun to be the Democrats fault even though the Republicans have been the majority in power between the Presidency, Congress, and Senate in one way or another for more than a solid generation now?
Posted by: zqahtt on 01/23/08 at 9:54 AM Respond
The president's plan is no surprise. It is consistent with his plans for health care, war, etc. - benefit the rich and powerful and the devil with the rest of us!
Posted by: Raymond Keeling on 01/23/08 at 12:59 PM Respond
US aid to Israel is $500 per year for each Israeli. That's each and every year and the current plan goes out for 10 years. For the next 10 years US aid to each Israeli will be $5,000. Some American taxpayers whose taxes pay for the Israeli's $5,000 in aid is being considered to get Aid from the government of a one time payment of $600. No one complains while the thievery, insults and abuses by the Bush administration continues.
Posted by: bogi666 on 01/23/08 at 1:46 PM Respond
In the LA Times bidness section this morning, they captured a quote from our douche-bag-in-chief, about his new advisory board and how they will impress upon the people how important it is to save money. (Gee, I wonder what their salaries will be? Will they get benefits? Perhaps a health insurance plan for life, like those in Congress?) Anyway, this coming from a dullard that has been a family passenger and done nothing but listen to his momma tell him that he is a member of the entitled elite, and his only job is to remain breathing and inherit money.
Why does anyone think this man (and I lose the term loosely), has a worthy opinion, or even knows what he is doing and saying?
This year cannot be over fast enough.
Posted by: buzzbike on 01/23/08 at 2:54 PM Respond
Call it Trickle-down economics, or Reaganomics, or voodoo economics, call it whatever you like it doesn't work. It didn't work in the 1980's and it's not working now. Excuse me, but weren't Bush's tax cuts for the wealthiest Americans supposed to create jobs and stimulate the economy? Making the rich richer has never created jobs, unless Daddy Warbucks hires somebody to wash the Winnebago. Without a strong middle class, who buys the products? The answer should be a no-brainer so you'd think the current administration could figure it out.
Posted by: MacDuck on 01/23/08 at 3:32 PM Respond
Good point(s) MacDuck...but the only thing this administration has proven over the last 7 years, is that it can't find its butt with both hands.
I need to do some digging, but of all these alleged millions of jobs the Cheney/Shrub cartel has boasted about creating; wonder how many are at minimum wage and with virtually no benefits? All of them? 50%? Where is the trickle down in that?
The 1 year anniversary of the passing of Molly Ivins will be on 1/31. Turns out Molly was right about every blessed thing with these guys. I truly miss her words.
Posted by: buzzbike on 01/23/08 at 3:55 PM Respond
Good point(s) MacDuck...but the only thing this administration has proven over the last 7 years, is that it can't find its butt with both hands.
I need to do some digging, but of all these alleged millions of jobs the Cheney/Shrub cartel has boasted about creating; wonder how many are at minimum wage and with virtually no benefits? All of them? 50%? Where is the trickle down in that?
The 1 year anniversary of the passing of Molly Ivins will be on 1/31. Turns out Molly was right about every blessed thing with these guys. I truly miss her words.
Posted by: buzzbike on 01/23/08 at 3:58 PM Respond
Hmmm...how many new jobs could we create with that same money if we dedicated it to modernizing and re-building our crumbling bridges and highways? Or to building new, clean light rail or subway systems in cities that desperately need them?
Posted by: agmom57 on 01/24/08 at 3:57 AM Respond
We does this tax money come from? The current gov't spending policies have increased our national debt into the trillions. China is floating most of our debt. So where does this 'mana from heaven' come from? More debt. Who pays the debt? The wealthy? They get tax breaks. Large companies? They get gov't welfare and tax breaks. Who pays? We do. So if we will have to pay for this tax break ourselves. And the added bonus is that we have to pay taxes on our tax break in 2009! Once again we are being handed a greater share of the tax burden. As stated above trickle down economics is just a way to state shifting the tax burden and the costs of society to the people away from the American aristocracy. Which creates a lovely investment climate for foriegn investors. Nothing says invest in a country that consistently dupes its populace into paying for more and more of the social structure opening more money for returns on investment(shift of control of capital).
Posted by: nakis on 01/24/08 at 4:38 AM Respond
Sorry for the broken sentences. I upset myself thinking about how we get duped by the wealthy owners of our nation. :)
Posted by: nakis on 01/24/08 at 4:40 AM Respond
All you dumb a$$es out there-remember what bush has done and GO OUT & VOTE for somebody competent, instead of bit*hing about it...
Posted by: Christopher Flynn on 01/24/08 at 7:43 AM Respond
I don't understand how ginving money to the people that don't need it is going to help the economy?
Posted by: bunk on 01/24/08 at 10:22 AM Respond
To share the words of a poster on another web page, it ain't a tax cut - it's a tax deferral. Somebody will have to pay taxes to cover the interest on the borrowed money and the principal payback some day!
Posted by: Lynda on 01/25/08 at 10:54 AM Respond
"Unquestionably, there is progress. The average American now pays out twice as much in taxes as he formerly got in wages."
~ H. L. Mencken
Posted by: capt on 01/25/08 at 4:30 PM Respond
Is my memory faulty, or am I right? The last "rebate" was paid back in full when you filed your taxes for the "rebate" year. In other words, we received a loan from our tax "refunds," not a rebate at all. It was a complete fraud.
Posted by: mohawkpoint on 01/28/08 at 2:35 PM Respond
Do people with children truly love them?
The response by many would be, I want to keep them safe.
Me thinks the bigger terrorist is the former generation who spent trillion$, cause they wanted "Tax Cuts", and stick them with the bill.
Posted by: stan on 01/29/08 at 12:55 AM Respond
only in america does our leader slap you and your family in the face, when you can not even catch up, we are slaped in the face with a stupid ass rebate for the rich and all our leaders with a tax rebate our government once again is pissing in the wind the poor better duck.
Posted by: joetta on 01/30/08 at 8:21 AM Respond
["This is just more fake paper fiat currency."]
Learned something from Ron Paul, have we?
Posted by: Paul Ron on 01/30/08 at 9:21 AM Respond
I am grateful for an extra $600 whether it's used for buying a treat or paying a bill. To save a few bucks on my meds I got a prescription discount card at www.rxdrugcard.com. Low membership fee. Drug prices posted. Every little bit helps!
Posted by: Lily on 06/30/08 at 12:49 PM Respond
ARCHIVE
April 20, 2008 - April 26, 2008
April 13, 2008 - April 19, 2008
April 6, 2008 - April 12, 2008
March 30, 2008 - April 5, 2008
March 23, 2008 - March 29, 2008
March 16, 2008 - March 22, 2008
March 9, 2008 - March 15, 2008
February 24, 2008 - March 1, 2008
February 17, 2008 - February 23, 2008
February 10, 2008 - February 16, 2008
February 3, 2008 - February 9, 2008
January 27, 2008 - February 2, 2008
January 20, 2008 - January 26, 2008
January 13, 2008 - January 19, 2008
January 6, 2008 - January 12, 2008
December 30, 2007 - January 5, 2008
December 23, 2007 - December 29, 2007
December 16, 2007 - December 22, 2007
December 9, 2007 - December 15, 2007
December 2, 2007 - December 8, 2007
November 25, 2007 - December 1, 2007
November 18, 2007 - November 24, 2007
November 11, 2007 - November 17, 2007
November 4, 2007 - November 10, 2007
RECENT COMMENTS
Taking a Look at Bush's Economic Stimulus (23)
Lily wrote:
I am grateful for an extra $600 whether it's used for buyi...
[more]
MoJo Convo: Iran Panic? Talk About It With the Experts (59)
dadpasadena wrote:
I believe Bush & Cheney have conceded to the horrific mess...
[more]
What Advantages Come With Vice President Romney? (3)
Jonathan Stein wrote:
AnPhlbn --
McCain can opt out of the public financing sys...
[more]
McCain's New Plan — Attack Obama's Character. Will it Work? (11)
Curtis Johnson wrote:
It pays off with the ending of preemptive violence continu...
[more]
In a Speech on Patriotism, Obama Tries To Get Past the '60s (2)
Trollstein wrote:
'Dissent' is neither patriotic or un-patriotic. It is dem...
[more]
Hey, Wes Clark... (12)
VJ wrote:
Clark simply told the truth. Where is the debate? The me...
[more]
Hypocrisy Meter Explodes (7)
Robert wrote:
So what exactly does this existential metaphysical blather...
[more]
One More Problem With Romney as VP (1)
Jeugenen wrote:
MC-CAIN BROUGHT TO KNEES BY ROMNEY
The desperate Podhoretz...
[more]
Devastating Article by Israel's Top Journalist on Casino Mogul Sheldon Adelson (17)
Natasha Bello wrote:
To heck with you nay sayers. Sheldon Adelson should be adm...
[more]
Barack Obama's Messiah Complex (97)
Maria wrote:
Is it not the vieuwer who regards the other to be that wha...
[more]
Movable Type 3.33


Posted by: Eric Ferguson on 01/22/08 at 1:11 PM Respond