The Economic Stimulus Check Means Higher Taxes To Come.
At least, that’s how the second paragraph in an article on CNN reads:
“If you’re among the 130 million people who qualify for the rebate, that’s great. But you should savor the feeling. Regardless of what happens over the next few months, your taxes have nowhere to go but up in the long-term future.”
And honestly, I happen to agree 100% - we cannot continue to give tax cuts out to everyone except the lower class, pay $12 billion a month for war, subsidize the airlines and everyone else (except Amtrak, strangely enough), send out notices (at the tune of $42 million) just telling us the stimulus checks were coming out, and then issuing the checks at a cost of $150 billion. And here is why your taxes will go up, as once again the Democrats will get the blame because they have to fix our situation over the next 4-8 years:
“Today’s low rates can’t last. The tax cuts of the past decades were supposed to lift economic growth (which they did) and hike tax receipts faster than federal spending (which they did not). Not even close. The resulting tsunami of federal debt is one reason to expect your taxes to rise over the next quarter-century.”
Remember how the tax cuts of the last 7 years were supposed to help our economy grow? It did just the opposite, and somewhere down the line, guess who gets to pay for this disaster? We do. So keep that in mind - although the government sent you $600, they will be coming back with their other hand wide open asking for even more. Nothing is for free, they say….
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17 Comments so far
David, I couldn’t agree with you more. You’re dead on with everything you wrote here. Unfortunately.
I agree as well, and encouraged our readers to take advantage of these low rates as much as possible: lower credit rates, mortgage rates etc. Nice site!
[...] out there have been waiting on theirs too, …My Debt Blog - http://www.mydebtblog.com|||The Economic Stimulus Check Means Higher Taxes To Come.Related Articles at My Two Dollars:. Economic Stimulus Checks Being Sent Out Early. Pay Off Debt Or [...]
Yeah well it is sounding like they can’t even “give” money away without making some mistakes. I don’t feel stimulated at all, as hubby and I only got $600 total for both of us. They may have made a mistake … which of course will require more money to fix. Since we are in the 0% tax bracket I guess we shouldn’t fuss too much, but our expenses have gone up 12% since the beginning of the year. This so-called stimulus covers only two months of increased expenses, with enough for one decent anniversary dinner.
@DR - you are in the 0% tax bracket? Maybe you only got that much because you don’t pay any taxes - I don’t know how that works.
It’s not a stimulus - to me it’s an advance on taxes we are going to owe later!
i completely disagree with you. everyone that pays income taxes got a tax cut under bush, including the lowest income earners. and the bottom 50% of wage earners pay about 4% of the total of all income taxes. There’s never been an economic problem the democrats have ever fixed, and under bush we’ve had one of the greatest expansions of the economy in the past 30 years.
That’s pretty funny Squeezer, one can only hope that you bleed sarcasm.
[...] The Economic Stimulus Check Means Higher Taxes To Come at My Two Dollars — A good argument and explanation as to why taxes will be higher in the coming years. [...]
[...] My Two Dollars tells us what we should see coming, the economic stimulus checks will mean higher taxes for us in the future! [...]
[...] The Economic Stimulus Check Means Higher Taxes To Come @ My Two Dollars [...]
I completely disagree. The Bush tax cuts helped stimulate the economy SO much that it caused the housing crisis and subprime meltdown. The tax cuts helped lower the interest rates which spurred on the housing boom and caused mortgage lenders to exploit buyers and buyers to go nuts and lose all rational thought.
Cutting taxes ARE the solution to helping long-term growth. I agree that the quick-fix stimulus payments will not help, but you can’t blame cutting taxes for the reason that the economy has slowed down. It slowed down because the citizens of this country got too greedy with the housing market and single-handedly made it tank. The tax cuts did what they were supposed to do, help faciltate and stimulate growth. How that growth and stimulation is handled is up to us.
So the massive pile of debt that we AND the government are carrying will not ever have to be paid back by increasing taxes? That was the point of this article. You cannot cut taxes and go on a spending spree…it has never worked and never will. It’s one way or the other; not both.
And to echo Squeezer, the 2001 tax cuts lowered the lowest tax bracket from 15% to 10%. That’s a 50% decrease for the lowest tax bracket earners. Plus, it lowered the capitals gains tax which benefits everyone with real estate or stock investments. And millions of middle class earners have these investments. So, don’t throw around the platitude that it was just a “tax cut for the rich”. It’s not true.
Yes, and our country has been so successful and prosperous since the tax cuts - The dollar is worth nothing overseas, the national debt is in the trillions, unemployment is high, wages are stagnant, the price of food and gas is skyrocketing…everyone is doing so well.
Sorry, but I have to disagree - just because a chunk of people save 5% on their taxes does not make for economic growth and good times for all.
I think we can all agree that an honorable country would repay its debts. As David points out, the US federal government is in debt to the tune of 9 Trillion dollars. That money has to be repaid. Cutting taxes and reducing revenue when you already have a gigantic yearly budget deficit is the opposite of progress.
You can like the Bush tax cuts or hate them. Either way, a person who’s honest with him/herself must know that higher taxes are going to have to come. Which, I believe, was David’s point.
[...] are watching for their economic stimulus rebates, My Two Dollars thinks they’ll means higher taxes in the future. If you’re wondering why your rebate check was smaller than expected read about [...]
Thanks KMC - exactly.