We are apparently going to have a 'tax rebate' program that will send some $150 Billion into the economy in the May-June timeframe.
People who didn't pay taxes but had at least $3,000 of earned income will qualify for a rebate check. People who had up to $75,000 of earned income will qualify. People who had earned income of about $87,000 and up will receive nothing. The higher income people will actually be paying taxes so that lower income people can get money back from the government.
Our tax codes have been changed over the years and are now at the point where they are as much, or more, social engineering tools as they are tax code. Money is constantly taken from those who earn it and is given to those who don't earn it.
So, what is so bad about this tax rebate other than that it is redistributing income? It will do very little for the stimulation of the economy.
The tax breaks that are supposed to be a part of this package will do far more to stimulate the economy than the rebate checks. Businesses will seize this opportunity to expand, to add equipment and to hire more employees. That is what stimulates the economy.
Time and again, we have seen how tax decreases have spurred the economy to the point that tax collections have increased. Similarly, we have seen tax increases backfire and cause tax collections to diminish. We are likely seeing that in Wisconsin as this is written.
If the politicians who can't seem to help themselves feel this nagging urge to pander to their constituents, wouldn't you think they'd have learned that they'll have more money to toss around if they reduce taxes? I certainly do not mean to condone this massive giveaway, but we seem unable to elect enough people of the right cut to push this mentality into the minority.
So, if we can't make that happen, then at least we should expect that the politicians who want to create money giveaway programs would learn the simple lesson that less taxes means more tax collection. What is so difficult about that concept?
