Details as to the Obama/Democrats stimulus plan are starting to emerge. I and at least one other person can't understand how tax cuts will encourage the spending and eventual investment which is necessary if we are to get out of this mess. My getting a tax credit of $1200 on my 2009 taxes doesn't mean that I will spend $1200 today. Nor does converting the $7500 tax credit for first home buyers into a grant mean that spending will increase by $7500. Yet almost 40% of the stimulus is going to be in the form of tax cuts, as defined by the Obama/Democrats today.
And is it right that businesses can apply this year's tax losses to profits made in the past five years? Will this mean more spending or investing by businesses? I don't think so.
The plan as outlined by the Wall Street Journal does not mention anything about unemployment benefits. Does this mean that there will be no changes made that affect the people likeliest to spend money?
And then there's the whole question of the effect of lobbying.
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