Congratulations President Elect Obama! Your proposed tax cuts, as described on CNN
, aimed at social security taxes and small business expenses, are precisely what many fiscal conservatives have been wanting for YEARS. Congratulations, but don’t be so timid!
1) you propose a $500 or $1000 credit delivered through a deduction in Social Security Tax (FICA) withholding. Excellent! It is immediately available to working people, in their paycheck
, even if they don’t earn enough to pay (or even file) income tax! NO delay while waiting for checks to be cut by the IRS and mailed to uncertain addresses as was done in last stimulus package last spring. …but why just $500?
You well know that the total stimulus package is much greater than what $500 per working person would cost. (According to the 2008 report by the Social Security Trustees
, there are roughly 165 million workers taxed, suggesting this tax refund would cost about $83 Billion.)
2) your proposed tax cuts total about $300B. CNN reports that the leaders of congress are concerned that it will take some time to pass the the total $700+ Billion "American Recovery and Reinvestment Plan" (ARRP). But you DON’T HAVE TO WAIT! There is still $350B left over from TARP! Congress COULD authorize spending this money on the tax cuts you propose, allowing employers to start delivering your proposed tax credit to employees in the next paycheck after January 20th!
3) you also propose investing in automating health records and reducing our dependency on foreign oil! Excellent!
Please note, however, that the primary objections to these proposals in the past have come from many of your own party’s supporters:
- refunding social security revenue "threatens" the sacrosanct Social Security system… but then so does borrowing Billions and "investing" in Wall Street firms, and the congressional leadership has already broken that barrier. Why not recognize that we are already borrowing all of the Social Security surplus to pay for government. There is no reason to continue the farce of pretending to "borrow" from the lock box when everyone knows the only way to repay the borrowed money is to use general revenue ( income taxes paid by our children and grandchildren) to repay the "borrowed" trust fund revenue. There is no difference between reducing Social Security withholding now and "borrowing" from the lock box to send out refund checks, except that the money gets in the hands of the people quicker when taxes are reduced. Kudos for recognizing this!
- health records are central to all "privacy" legislation… yet another subject that can’t be addressed without raising "big brother" fears!
- reducing dependency on foreign oil (for the time being) means drilling… another thing "we" can’t do without raising claims of conspiracy with "big oil".
But YOU, President Elect Obama, CAN propose these solutions and CAN make them work by virtue of NOT being a Republican and NOT being a businessman and NOT being perceived to be a traditional politician.
Go to it! …make us proud! Who says Democrats are forbidden to be rational and practical and trusted? Prove the conventional wisdom wrong!