Tuesday, January 07, 2003

The Doctor is in . . .

The Doctor is really no doctor at all, just a great friend of mine who I have known for over 20 years. Most of us go through life, adjusting the hierarchy of our friendship list quite often. I have been fortunate enough to have had 'The Doctor' on the top of the list for quite some time. He is about as far right, as I am left, meaning we do huddle close to the center, and share many views on what some say are the responsible issues. Subsidizing the rich, is not one of them . . . .

So Doc states:
Rich Person gets a higher % of the relief....so.... They are the ones with the most working capitol at risk that invest in companies that create jobs, etc. etc.

I don't have a problem with 'incentives' to promote growth, but that is not what this does. It takes money away from those who can use it, and gives it to those who will jeopardize it!

So maybe if nothing else it simply corrects a long term problem of double taxation. Will it help the economy? I think to some degree yes.

But NOT stimulate. Stimulus implies a level of immediacy, put money into the economy! They shouldn't call the dog a cat. That is where their credibility is jeopardized. Again, the Right is notorious for calling something what people want to hear, but not having it do the job proposed.

One could argue there has been no significant immediate tax breaks to the "rich" yet. Most all the benefits were future benefits beginning in year 4 and gradually increasing through the ten year plan.

We are not talking about the 1-3 percent drop in the marginal tax brackets. We are talking about the immediate need to put money in the hands of consumers who will stimulate demand, therefore creating a need for supply, THIS is what creates jobs and improves the economy

Don't cry for the banks, they will be making lots of loans and as long as there is a good spread to the fed discount rate they will make money (unless they make bad loans) The market is risky and there is more than enough capitol for them to loan out.

If this goes through, I will pull my money out of the banks and begin a more aggressive Stock portfolio. How many others will do this!!

It makes me cringe when I hear Democrates wanting to put money into the "right Hands", Code words for people who didn't earn it or pay for it but are entitled to it and will spend it... Lower taxes, Lower spending are the only answers and of course letting the cycle of the Bear market run it's course

I clarified my disdain for putting money into the hands of those who did not contribute. My definition of 'right hands' is putting money into the gloves of those who will do with it what you intend them to do. A $100.00 in my hands will be spent, thereby stimulating the economy. That same $100 in the hands of the rich will be placed in the stock market craps table and POOF . . . . Possibly gone, like it never existed.