Tax Reform in This Election Year: It's Not Likely
Which Credit Card Rewards Does the IRS Care About?Democrats, though, are giving the people what they want. Regardless of whether it's a good idea or not, it's fantastic politics. Democrats can prove to voters, who are fed up with the lousy economy, that they "feel their pain," leaving aside the debate of whether it's needed.
That explains why House Speaker Nancy Pelosi, D-Calif., says that the second stimulus bill will need to have bipartisan support -- as the first one got -- because it is vital for the economy. Like the first economic stimulus plan, Byrd's bill will be temporary, targeted and provide disaster relief, according to CQ Politics.com.
"The Speaker earlier had vowed to enact a second measure, totaling at least $50 billion, before Congress leaves this year," the website says. "But the president and congressional Republicans have been less enthusiastic about the idea, repeatedly arguing that lawmakers should wait to assess the impact of the tax rebates and other incentives enacted in February."
The White House reiterated this point yesterday on CNBC. "We do believe the effects that we've seen in terms of the stimulus will continue," Ed Lazear, chairman of the Council of Economic Advisers, told the cable network. The economy did grow 1.9% in the second quarter thanks to the checks. Many people, including friends of mine, are using their governmental largess to pay off bills. My wife and I are using the money to pay our estimated taxes, so the only one being stimulated by my money is the IRS!
While economically Lazear may be correct, politically he is dead wrong. Americans are sick of the volatile stock market, skyrocketing gasoline prices and a dismal housing market. People expect Congress to do something that will help them now and are loathe to wait for the market to "correct itself."
This is yet another reason why investors need to get used to saying the words President Obama.
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Reader Comments (Page 1 of 1)
8-01-2008 @ 1:08PM
W. B. Wilhite said...
I have increased my spending on beer. Therefore, there is more work for both the beer and waste management facilities. However, I require more stimulation. Please act soon!
8-02-2008 @ 6:11PM
vespa said...
We are damaging our grandchildrens futures! we sould just wait this out, the economy will get better on its own.
9-12-2008 @ 9:05PM
Jacquelyn Jennings said...
I have not received the first check along with many other people I know. So lets get all those folks taken care of before send out a second check. Any body know where I can go to report no check?