From one of our far-flung correspondents with a long and up-close and personal relationship to various administrations in DC comes this modest proposal:
"Recently, and historically, stimulus spending has squandered tax dollars and has not resolved recession. Consequently tax payers are even more skeptical and frustrated with such spending and resent the waste and record debt.
"A good example is the “Cash for Clunkers” program. The clunker was surrendered to the dealer, the customer received as much as $4500 credit in tax dollars toward the purchase of a new more efficient vehicle. The auto industry and unions had a short boost but tax payers paid an additional fee of $24,000 average for administration of each sale (www.edmunds.com) (or Google cash for clunkers results). Tax payers paid $28,000 for each qualifying guzzler taken off the street. Being charitable, this was fiscal folly.
"Imagine going to your local car dealer and purchasing a new vehicle and then paying $28,000 in sales tax. Actually you did, 125,000 times. Three billion dollars wasted.
"So then what is to be done? Take congress and the President out of the equation. If it has to be a stimulus package then let’s make it an absolute, immediate, and economy wide success for all responsible taxpayers.
"The Direct Stimulus and Jobs Bill directs all federal income tax withholding be discontinued effective April 15, 2010 through April 15, 2011. Federal income taxes during this period are forgiven. This stimulus is fiscally responsible, less expensive and historically successful. Congress and the President would be spectators of a true recovery by responsible adults managing their financial obligations wisely, ending the recession and creating jobs."
The tradition name for this is "Tax Holiday." Works for me.
Posted by Vanderleun at March 1, 2010 12:10 AM
I loved the 70s. I know. But it's true.
Posted by: ahem at March 1, 2010 4:51 AMTexas has a three-day tax holiday each year, a few weeks before school starts. Qualified items---clothing, shoes, and school supplies---are tax free. The program has been a roaring success. Husband and I watch the newspapers and TV for the tax holiday ads, then deliberately stay home so we don't get caught in the stampede!
Posted by: Deborah at March 1, 2010 8:22 AMYou can say what you want about "cash for clunkers", but at least it got a lot of "obama/biden" bumper stickers of the roads.
Posted by: Cheezburgrrr at March 1, 2010 5:42 PM"It is impossible to speak in such a way that you cannot be misunderstood." -- Karl Popper N.B.: Comments are moderated to combat spam and may not appear immediately. Comments that exceed the obscenity or stupidity limits will be either edited or expunged.
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