The new stimulus plan being proposed by the soon-to-be Obama administration is said to contain "tax cuts" for businesses and individuals. No details as yet have been issued on the business "tax cuts."
But as far as individuals are concerned, these are not tax cuts, but Obama spreading the wealth around as he inadvertently blurted out to Joe the Plumber he would do when elected.
Every person earning less than some number will get a payment whether he's a taxpayer or not and the amount of the payment will have no relation to how much the taxpayers getting payments pay in taxes.
While it is suggested that payees may "mentally" treat the payments as offsetting some of their payroll or Social Security taxes they pay, in fact those taxes will not change. Nor will the income tax. In the somewhat hysterical bailout environment we are passing through, it's borrow now to make payments and do the tax thing later. And when it's time to pay off the debt, the second part of the "spread the wealth" plan will come into play, with the so-called "rich" paying for 2009 welfare payments to the people Obama favors.
If these were truly to be tax cuts, the government need only declare an income tax holiday for some period or, better yet, permanently lower income tax rates proportionately, leaving people to make their own spending decisions about their own money, not money they get in a check from the government.
Sorry to say, even before the Obama folks are in office they are engaging in Doublespeak.
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