Thursday, August 6, 2009

"Stimulus" Money?

Here is a question... If stimulus money comes from the government, and the government doesn't make money, then it comes from us the taxpayers, right? Then wouldn't it make more sense to cut taxes, instead of giving back our money and calling it a "stimulus", thereby cutting out the government red tape that eats up most of the money in the first place?

I would like to point out that the pure fact that a "stimulus" plan is in place is because it is well known that money in the pockets of the people stimulates a consumer economy, which is how ours has been defined. So if money in our pockets keeps our economy running, why is it we have to keep paying in huge taxes to a government... a government that raises our taxes, stopping our economic growth, then has to give it back to tax us again to keep the vicious circle running. Really, the only thing our government has done is line their pockets with raises for their "hard work" and pork projects that oddly enough seem to also line their pockets.

We complain about a poor economy and know that the only way to stimulate our economy is for "we the people" to have more money to spend and invest and yet we entrust the re birthing of our economy to the very people that raise the taxes, killing our economy... and proceed to "do us the favor" of passing a "stimulus" which is simply just giving us back our money that we had to pay in taxes in the first place.

The real kicker is that the taxes are paid by the middle class... as mentioned once or twice, half the populace pays all the tax. So the middle class is actually paying to give stimulus back to everyone else, namely, the other half that paid no tax. So now half as much money is going to everyone, instead of all the money going to those that paid it. Don't be fooled, it is not a bottom up economy, it is the consumer spending of the middle classes that our economy runs on.

This then brings back the point, lower taxes means more money to spend and invest, leading to a strengthened economy and less need for higher taxes.... or much of any taxes at all except the most important essentials, protection and infrastructure. And well if the government can't make due with belt tightening like the rest of us, maybe the government is too big and needs to be trimmed a bit. Alleviate some of that fat hanging over the belt line.