Government Bail Out Part Deux

First it was the housing market. Now the broader economy. The Government is looking to bail out the slowing economy. President Bush is looking to eliminate the 10% tax bracket, which would save everyone that already owes taxes $800 a person. What the Government is saying with this:

• They fear the economy won't recover on its own
• The consumer's propensity to spend can save the economy
• People are not expected to pay off debts or invest, but spend, spend, spend
• Tax rates must be too high as they are willing to lower them
• Lower taxes equals a stronger economy

And both the Democrats and Republicans seem to be behind this. Could this be because it is a election year? Interesting how the Democrats mostly want to raise taxes if elected, see my entry, but here agree they need to cut taxes temporarily to stimulate the economy. I don't particularly like the Government mailing out checks to help the economy, unless they are backing it with less spending to cover it. Unsurprisingly, the Democrats want to additionally increase spending plans such as repairs to highways and bridge to stimulate growth. Although, there is no doubt we need infrastructure repairs, it can't be paid for by temporary tax cuts. This is an attempt to pile on more spending, under the guise of helping the economy. I probably won't mind seeing my check in the mail, however fiscally irresponsible it may be.