Link: Tax cuts, rebates will stimulate souring economy.
Stimulating the U.S. economy to avoid recession should start with making George W. Bush's tax cuts permanent. Then jumpstart economic activity with a one-time tax rebate to help consumers through the current rough patch.
At the same time, trim government spending to reduce the deficit. The three tacks will give the economy both a short-term boost and long-range stability.
In turn, the stability will encourage businesses to invest in the future, creating jobs and the paychecks that follow. Companies will invest heavily only if they can reasonably estimate costs against projected revenue. Uncertainty about future taxes wave red flags, and there's no need to keep job creators guessing.
Comment -- Congress and the President seem to be close to agreement that the U.S. needs tax cuts/rebates to stimulate our shaky economy.
So, why did Michigan lawmakers and Gov. Granholm raise taxes in 2007? Must be our economy is doing so well that we don't need any economic stimulus...
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