Democrats Looking At Tax Rebates, Benefit Boosts And Public Works To Stimulate Economy

[Purveyor]

Source: Associated Press

WASHINGTON – Democrats controlling Congress are looking at tax rebates, extended unemployment benefits and more food stamps to stimulate the sagging economy.

But even as momentum builds behind those ideas – with President Bush increasingly open to proposing a stimulus package later this month – the effort is fraught with election-year risks for both Democrats and Republicans.

Any politician who promises action on the economy had better deliver. Failure to enact those or other pump-priming measures, which is possible, will register with voters increasingly alarmed about their own well-being.
On the other hand, not trying is a losing strategy too. Democrats see little choice but to make the effort.

“There's a risk in doing nothing and a risk in doing something,” said Illinois Rep. Rahm Emanuel. “I'll take the risk of doing something for middle-class families versus the risk of doing nothing.”



Read more: http://www.signonsandiego.com/news/business/20080111-1342-economy-

[flashl]

1. 'doing something for middle-class families'

Are the poor so far gone, they are no longer considered in public dialog?

[Xithras]

3. The middle class drive the domestic economy.

The poor count, but the concern here is to avoid a depression. The poor, because they're poor, tend to not spend much money on consumer goods. Eating and paying rent are usually more important.

The rich buy things too, but their numbers are small and they cannot sustain an economy for 300 million people.

In order to help the poor, the government needs to collect taxes. For tax revenue to be sufficient, people need to have jobs paying a wage high enough to tax (poor people don't owe income taxes). That means taxing the middle class.

Without a strong middle class, the government grinds to a halt and the poor are even more screwed than ever.

[flashl]

5. The working poor also drive the economy through their work.

[Xithras]

7. No, the poor make the economy work, but they don't drive it.

If the poor drove our economy they would have a hell of a lot more power in our society. You can have a nation full of willing workers, but if nobody is BUYING they'll all be unemployed. The system only works if there is a market for produced goods, and a healthy American middle class is the only substantial market we can reach.

A healthy economy requires participation from all levels of society. In America our course tends to be set by the rich, the driving is done by the middle class, and the poor are down in the engine room making the machine chug along.

That's why the government tends to reach out to the middle class during hard economic times. If the middle class doesn't buy things, the economy contracts, the poor lose what little employment they have, and tax receipts go down just as needs are increasing. The only way to counter it is to get the middle class back on solid economic footing.

[flashl]

8. OK, then why would the poor need to vote?

[Xithras]

10. What does voting have to do with anything???

We're talking about the economy here, not political power.

[flashl]

12. If U.S. representatives are speaking to the economic interest of only one class

what is the motivation of the other classes to participate in voting?

[Old_Growth]

9. Useless Eaters...

Maybe they will notice when their dead bodies start showing up en-masse on the streets.

[jaksavage]

2. Our economy is bloated

we need a period of dieting for all.
Scrape the cream off the top and give it to the bottom half.
Still we all need to live a more intentional life.

[aquart]

4. Public works! YES!

Might wanna restore the parkland ruined by the ...what do they call those? ORVs? ATVs? Something like that?

[DuaneBidoux]

6. A no brainer our bridges are falling down and our roads are full of potholes.

[bemildred]

11. Bring back the highly progressive income tax.

Make them do something with profits besides building McMansions.

[Robbien]

13. Throw a couple of temporary bucks at the middle class and give huge permanent tax cuts to the rich

Middle classes are thrown a couple of nickels and patted on the head and told to go suck eggs. No tax cuts for you.

This bill is just a cover to make the tax cuts for the rich bigger, better and permanent.