Posts: 6870
Joined: 10/10/2005 From: brunstank ga Status: offline
the stimulus check really isnt a good idea :
Before the House of Representatives, January 29, 2008 Madame Speaker, I find it odd that HR 5140, a bill allegedly designed to provide a stimulus for the anemic American economy, contains provisions that could damage the economy and hurt American taxpayers. Specifically, the provisions increasing the loan limitations of the Federal Housing Administration and the Government Sponsored Enterprises (e.g. Fannie Mae and Freddie Mac), will exacerbate the long-term problems in the housing market, and may even lead to a future taxpayer bailout of the housing industry. The recent bursting of the housing bubble should have taught my colleagues the dangers of government policies that distort the market by diverting resources to housing, when those resources would be more efficiently used in other sectors of the economy. Ironically, many of the same members who insisted that upper-income taxpayers be denied the tax rebates are enthusiastic champions of the provisions in HR 5140 increasing the FHA loan limit to $633,500 and the GSE loan limit to $729,750. This increase in the loan limits represents a generous taxpayer subsidy to high-income homeowners. A one-time “rebate” check, while it may provide a temporary boost to many working American families struggling with the current downturn, is not going to provide the type of sustained income growth necessary to restore consumer confidence. In fact, history shows that when the government forgoes serious tax cuts in favor of one-time “rebates” most people either save the money for a “rainy day” or use it to pay down some of their debt. In addition, I am concerned that the 50% bonus depreciation and the increase in the amount of qualifying purchases that small businesses can expense in the year they bought their equipment will be of limited effectiveness because they are limited to one year. A more effective way to stimulate the economy would be to make the 2001 and 2003 tax cuts permanent. I also hope Congress considers the long-term tax cuts contained in HR 5109, the Economic Growth Act. Congress should also pass my Tax Free Tips Act (HR 3664), which makes tips exempt from Federal income and payroll taxes. Making tips tax-free will strengthen American families and the American economy by allowing millions of hard-working Americans to devote more resources to their children’s, or their own, education, or to save for a home, retirement, or to start their own businesses. Another disturbing feature of HR 5140 is that, instead of taking the fiscally responsible course and pairing the tax cuts with spending cuts, this bill simply adds to the national deficit. Madame Speaker, unless Congress acts soon to reign in its excessive spending, the American people will face confiscatory tax rates or skyrocketing inflation. Tax cuts by themselves will not restore long-term economic health unless and until this body finally addresses the fundamental cause of our economic instability, which is monetary policy. The inflationary policies of the Federal Reserve are the root of the boom-and-bust cycle that has plagued the American economy for almost 75 years. The Federal Reserve’s inflationary polices are also at the root of the steady decline in the American people’s standard of living. A good step toward monetary reform would be for Congress to pass my HR 2576, which repeals the Federal legal tender laws. This would allow people to use alternatives to government-issued fiat money and thus protect themselves from Federal Reserve–created inflation. One of the best things Congress could do for the American economy is to repeal, or at least reform, the misguided Sarbanes-Oxley law, particularly Section 404. Rushed through Congress in the wake of the Enron and WorldCom scandals in order to show that Congress was “getting tough” on corporate crime, Sarbanes-Oxley imposes unreasonable costs on small businesses and entrepreneurs. A survey by Financial Executives International, an organization of chief financial officers, put the average cost of compliance with Sarbanes-Oxley at $4.4 million, while the American Economics Association estimates Sarbanes-Oxley could cost American companies as much as $35 billion. Because of these costs, many small businesses are delisting from United States stock exchanges. According to a study by the prestigious Wharton Business School, the number of American companies delisting from public stock exchanges nearly tripled the year after Sarbanes-Oxley became law, thus these companies are finding it more costly to attract the necessary capital to grow their business and create jobs. In conclusion, Madame Speaker, HR 5140 does not provide the kind of permanent, deep tax relief that will protect long-term economic growth, and will actually compound the damage Congress has already done to the housing market. Instead of pretending that we are addressing America’s economic problems via temporary tax cuts, Congress should address the fundamental problems of the American economy by pursing serious monetary reform, spending cuts, and regulatory reform. Congress should also provide real long-term tax relief to the American people by passing legislation such as HR 5109 and HR 3664.
_____________________________
Then said he unto them, But now, he that hath a purse, let him take it, and likewise his scrip: and he that hath no sword, let him sell his garment, and buy one.
hey im too young to remember. but did the government do the same thing during the recesion of 2001?
in reality we were worse off in 2001 then we are now.
for a year and a half the GDP growth was negative and unemployemnt was at 5.8%
as for the last two quarters we have actually experienced fractional growth so technically we are not in a recession yet. and unemployment is still at 5%.
it takes two consecutive quarters of Negative GDP growth to be considered a real recession. according to modern economic theory.
weve faced harder times before. well make it through.
_____________________________
My 1967 Coupe ASE Cert:Auto Collision, Refinishing, & Metalwork/Mechanical Engineering Major. Because being 18 means you know nothing about automobiles
To Hell with it. I'm spending mine on lap dances! But only from born-in-America strippers!!!!!
thats a classic.
_____________________________
My 1967 Coupe ASE Cert:Auto Collision, Refinishing, & Metalwork/Mechanical Engineering Major. Because being 18 means you know nothing about automobiles
What Americans need to do is stop spending and start saving. It's spending money that you don't have that has put the world almost into recession. Also, when you spend, think about where that money is going. As some have stated most will be to a foreign country. Much of that to Japan, so thank you mister Bush...................
I only read a couple of the posts but i will say this. If you want to spent the money on american stuff buy beer and golf. You cant go to Walmart and buy something you will be buying chineese. Just go get drunk and play golf. :)
Come on dont blame Mr. Bush the economy was fine befor the Democratic congress took over....
quote:
ORIGINAL: JapanGT
What Americans need to do is stop spending and start saving. It's spending money that you don't have that has put the world almost into recession. Also, when you spend, think about where that money is going. As some have stated most will be to a foreign country. Much of that to Japan, so thank you mister Bush...................
the recession of 2001 was in effect before bush got in office and it was much worse than right now.
we glossed over it because of 9/11.
but that recesssion is directly related to democratic controlled congress and democratic controlled white house.
btw we arent in a recession yet
and dont advise people to save. thats not going to help the economy. that helps the indivdual. which destroys the economy and destroys the individual.
the problem is spending money you dont have
true it was from people with no credit getting huge houses an dcars they cannont really afford.
but whats putting us in a recession is now that the morgatge crisis is upon us people are scared and saving money.
which pulls money out of circulation and causes recesion which increases unemployment. and combined with high gas prices increases inflation which will cause stagflation.
high school economics. ftw.
_____________________________
My 1967 Coupe ASE Cert:Auto Collision, Refinishing, & Metalwork/Mechanical Engineering Major. Because being 18 means you know nothing about automobiles
Has anybody heard that this money will be deducted form next years refund????I heard and read as well as it being confirmed by a accountant
As honeygoldcoupe stated.. you do not have to report it on your 08 return. I just received our notice today and in the first paragraph it states the following:
quote:
From: Your Friendly Neighbourhood Internal Revenue Service "You will not be required to report the amount of your stimulus payment as taxable income on your 2008 federal income tax return"
No The US Goverment is putting us in Debt and Recession. We as Americans are losing our jobs by the Thousands and the Goverment does nothing but profit off of this. The Highest Grossing Goverment Entity is The US Customs. Everytime a product is imported into the US they have to pay a Duty (tax) on the Commodity coming in. This countries are limited to amounts that can be brought into the US, but if the go over that amount they just pay a higher percentage. So we are losing jobs to other countries that use cheap labor to build the product. Take the automobile or any other product that use to be made in Amercia, that item is now being built in Mexico, China or Japan. Did the end user price go down? No if anything the price went up and the companies have made higher profit margins. The only ones that are investing in the US are Foriegn Companies. Look at the last Automotive manufacturing plants that have been built in the US there are all Foriegn Cars. (Honda,Nissan and Toyota.) If the Foriegn companies can do why can't the American companies do it? The last plant FORD built was in Brazil it is a Multi Billion Dollar State of The Art Plant full of cheap labor. What was once our biggest employer's Manufacturing is now a past time, the US is becoming a Warehousing industry. As Far as Goverment Stimulus Checks They Cut These Checks every month it is called WELFARE. If the Goverment wants to be fair then they should send out checks every month from ALL THE PRODUCTS that are imported into the US form the Jobs we have lost.......
< Message edited by TripleHmotosports -- 5/14/2008 11:10:37 AM >
What Americans need to do is stop spending and start saving. It's spending money that you don't have that has put the world almost into recession. Also, when you spend, think about where that money is going. As some have stated most will be to a foreign country. Much of that to Japan, so thank you mister Bush...................
Jav
The point of this stimulus is to SPEND that money. Saving only goes so far anyway. People learned that the hard way in the GREAT DEPRESSION.
And don't tell Americans what they need to do when you're not even in this Country. You mention the habit of spending what you don't have has put the WORLD into depression... fine. Then don't point your finger at the US when making a statement that applies to the WORLD. I could say something about Japan torturing US POWs in WWII, and MITSUBISHI forcing US POWs to work as slave labor in their factories during the war, but I won't step off your high horse. Asia is not perfect, and without the US to buy all your crap, your economy would fail. Want us to save and not spend? Find another country to sponsor your low wage factory jobs, and then come back with an argument about us saving.
So... YOU ARE WELCOME.
And I get tired of people blaming bush. Pull that **** for Iraq, if you must, but Clinton had this economy in a downward spiral when he was leaving office. Clinton stepped into a booming economy, thanks to Sr., and when he left things were on a serious fall from Grace. People like to blame Bush for the problems with the economy, and while certain things can be attributed to his administration, but this was on it way when he stepped up, and 9/11 Didn't help.
As for people still saying their accountants are saying it's coming out of next years taxes... Read the original post. Thats what this thread is ABOUT.
_____________________________
So... my "I" key doesn''''t always work on my keyboard... just in case I miss one in my posts.
Posts: 6870
Joined: 10/10/2005 From: brunstank ga Status: offline
yeah, the economic problems during ones presidency are largely in part due to the prior president, most people dont know that.
_____________________________
Then said he unto them, But now, he that hath a purse, let him take it, and likewise his scrip: and he that hath no sword, let him sell his garment, and buy one.
Your stimulus payment is a one-time tax cut - an advance on a credit you'll receive on your 2008 return. You will not owe tax on your payment when you file your 2008 tax return, and it will not increase the amount you owe or reduce your 2008 refund. The stimulus payment is based on your 2007 income initially. If it turns out that your 2008 income and number of children would have qualified you for a larger rebate than the one you received, you'll be sent the difference. If it turns out your 2008 income was lower than in 2007 and you should have gotten a lower rebate, you get to keep the difference. "If you were supposed to receive a larger payment than you did, you will get the extra money," said Treasury spokesman Andrew DeSouza. "If you received more than what you should have gotten, you will not be penalized."
also the fact that the government is giving us money to put into the economy is actually the best way to combat a recession,
to combat a recession the government has to increase government spend on things like public works or military spending. but in todays government where we are seeing huge deficits giving money to the people to spend will greatly help because these purchases will incur taxes for state and local government. helping fun our local economies.
intheory it should work out wonderfully as long as the people spend. the issue the situation faces now is that the marginal propensity to consume is at a record low which means people are spending less and saving more.
saving does not help using the effect money multiplier effect. the only thing it does is allow banks to increase excess reserves and allow for more lending and investment.
but if people arent willing to spend then theres no reason for investment or lending.
BE GREED AMERICANS.
and make sure you buy American. thats a big deal.
all apple computers are built in japan so american dosent see GDP increase.
dodge rams are built in mexico. so we dont see a GDP increase.
Apple processors are intel, US made, where the heck do you get Japan?? China or Mexico more like it. Ford Mustang is built in MEXICO
The reason there is a deficit and a recession is that the government has OVERspent on stupid stuff like subsidizes of certain industries like Corn where they pay farmers not to grow corn or to start growing corn so they can push their Ethanol directives. The government controls the price of corn...PERIOD. That's one example.
Foreign trade as in a HUGE (MULTI-BILLION dollar trade deficit EVERY year)...good god the government is a bunch of idiots. Why do you think our stuff is so expensive oversease (like cars that get shipped to China or Japan) It has nothing to do with "their government restrictions on pollution" that's our government PR mill. It has to do with the fact they are allowed to tax the begeezus out of our US made products to the point the foreign consumer does not want to purchase american made because it costs so much more that without any significant benefits. In turn we give them tax breaks or don't even bother to charge them for shipping their stuff to us which makes our US stuff seem hella expensive..why? Because we demand $15-20 an hour to live even remotely decent as far as the average consumer is concerned.
Where do you think our government got the billions of dollars for the tax stimulus? Credit Card, as in a temporary loan from China against our trade deficit with them. What do you think it's going to cost our government (meaning you and I the consumer) to pay it back? Lower import taxes to China to ship their crap here. What do you think that's going to do to our US dollar overseas and our domestic prices? You got it, weaker dollar, our shiz goes up in price, china's crap stays cheap and wally world keeps bringing in billions of dollars all the while paying it's employees squat.
_____________________________
quote:
ORIGINAL: P Zero
He could strap a rocket to his ass and beat em on foot too. -P.
okay here is me 2cents. turn off the TV, only listen to music on the radio, stop reading the paper and the rag mags, and get back to work. if you go about your day and work hard, save money where you can and spend money on the things that matter you will be fine. if you can park the everyday ride in the afternoons and save the fuel for burnin' the stang tires you will be one step ahead.
a famous man once said "this too shall pass"
my dad was born in 1921 and they had it a whole lot worse than we did. maybe this will be a wake up call to all the other 30 year olds like me. finaally we will get our shiat together and prepare for our futures.
BTW i spent $175 today to fill up the dodge. $4.29 for #2 diesel
Printable Version
RE: For all those paranoid about the Economic Stimulus ... - 
