Do we need another Stimulus Package?
Once again, we are hearing rumblings of yet another way the goverment thinks things can be improved for our tanking economy. This time, they are considering a $150 billion package that would target Infastructure, extending unemployment benefits, increases in food stamp benefits and helping states with Medicare programs. There is talk it could include tax breaks for the middle class and yet another stimulus check, which could put this package at about $300 billion.
Isn’t time to stop thowing money around after bad debt? My first thought is how many years are we going to be paying for all of this? We already gave $700 billion to the banks and Wall Street, we bailed out Fannie and Fredie before and has anyone forgotten the checks we got earlier this year? The auto industry wants us to now bail them out. Who’s going to be next in the line?
With the rebate checks, I had heard on a news program that only about 10% was invested back into the economy by purchase of goods and services. So much for all of us buying big screen TVs with our checks like they had hoped. Some people had the checks taken away before they even got them due to garnishments, some invested them, some paid off debts and some people still haven’t claimed them. For those checks not claims by a certain point, will the goverment take those dollars out of the total they have paid out and the total we may have to pay back in taxes?
Anyone remeber the The Jobs and Growth Tax Relief Reconciliation Act of 2003? Yes, we were given a child tax credit for each child, but at the end of the year, we had to claim it on our taxes. I use Turbo Tax and it asked me, did you receive this credit? And what did most people I know do with the credit? Pay off debt, not purchase new goods and services. The govement gave us a short term loan for the Child Credit, are they going to do it again with the Stimulus check from February? The IRS isn’t saying anything that I can find, how this will be accounted for 2008.
If we are investing in infastucture such as roads and bridges, does this create jobs for all the lost ones? Who exactly is going to benefit from the food stamp increases? How long do they plan to extend unemployment for?
I also would like to know if the government is going to go after businesses they bailed out once they start turning a profit. They should repay the government for the help they got. But I have not seen an answer for this one either.
It sounds so wonderful in the beginning, but we still have too many questions unanswered from the last bailouts. And our economy is still going from Recession to Depression.
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