Some facts about the stimulus
If you've watched CSPAN today you saw a lot of talk about what works and what doesn't in the stimulus bill. As expected Republicans favor tax cuts of all kinds to solve the problem. Dems favor direct government spending. In a minute I'd like you to look at some numbers and compare, but first let's keep the following in mind. As the recession
deepens, states' deficits are rising and could total $350 billion to $370
billion over the next 2 1/2 years. That translates into huge budget cuts as
well as tax and fee increases, and these things will reduce overall demand,
which removes even more money from the economy.
A lot of these states are mandated by law to balance their budgets each year. Foolishly they passed balanced budget amendments that thankfully Republicans were never able to ram through congress in the 1980s. Other states like California are so deeply in debt with no way to raise or borrow funds after years of mismanagement they are essentially bankrupt.
Now let's look at those figures. They come courtesy of the Int'l. Labor Communications Association. Now that sounds like a lefty organization (it is) and for some that would automatically make their data suspect. Well here's what the ICLA has to say about that:
Right about now somebody will be asking: "Did some wacky liberal (from Neptune) come up with this research and how much credibility does it have?" Sure, this is the sort of policy position you'd expect to come from Barack Obama or some sort of "progressive" think tank. But it comes from Moody's Economy.com, which is an entirely different animal. It is a leading independent provider of economic analysis, data, and forecasting and credit risk services. And its chief economist, Mark Zandi, is a former advisor to presidential candidate John McCain.
Fiscal Economic Bang for the Buck
One year $ change in real GDP for a given $ reduction
in federal tax revenue or increase in spending
Tax Cuts
Non-refundable lump-sum tax rebate 1.02
Refundable lump-sum tax rebate 1.26
Temporary tax cuts
Accelerated depreciation 0.27
Across the board tax cut 1.03
Payroll tax holiday 1.29
Permanent tax cuts
Make Bush income tax cuts permanent 0.29
Cut in corporate tax rate 0.30
Make dividend and capital gains tax cuts permanent 0.37
Extend alternative minimum tax patch 0.48
Spending Increases
General aid to state governments 1.36
Increased infrastructure spending 1.59
Extending UI benefits 1.64
Temporary increase in food stamps 1.73
Source: Moody's Economy.com
http://www.ilcaonline.org/ht/display/ArticleDetails/i/75963
Feel free to send this to your crazy Uncle Spric or Niece Renaye. They need to know the facts. While you're at it send it your local congressman. Like what's his name says fax it to him or her. Send it to as many US senators as you'd like. John McCain might like to know at least one of his economic advisors isn't insane.
A lot of these states are mandated by law to balance their budgets each year. Foolishly they passed balanced budget amendments that thankfully Republicans were never able to ram through congress in the 1980s. Other states like California are so deeply in debt with no way to raise or borrow funds after years of mismanagement they are essentially bankrupt.
Now let's look at those figures. They come courtesy of the Int'l. Labor Communications Association. Now that sounds like a lefty organization (it is) and for some that would automatically make their data suspect. Well here's what the ICLA has to say about that:
Right about now somebody will be asking: "Did some wacky liberal (from Neptune) come up with this research and how much credibility does it have?" Sure, this is the sort of policy position you'd expect to come from Barack Obama or some sort of "progressive" think tank. But it comes from Moody's Economy.com, which is an entirely different animal. It is a leading independent provider of economic analysis, data, and forecasting and credit risk services. And its chief economist, Mark Zandi, is a former advisor to presidential candidate John McCain.
Fiscal Economic Bang for the Buck
One year $ change in real GDP for a given $ reduction
in federal tax revenue or increase in spending
Tax Cuts
Non-refundable lump-sum tax rebate 1.02
Refundable lump-sum tax rebate 1.26
Temporary tax cuts
Accelerated depreciation 0.27
Across the board tax cut 1.03
Payroll tax holiday 1.29
Permanent tax cuts
Make Bush income tax cuts permanent 0.29
Cut in corporate tax rate 0.30
Make dividend and capital gains tax cuts permanent 0.37
Extend alternative minimum tax patch 0.48
Spending Increases
General aid to state governments 1.36
Increased infrastructure spending 1.59
Extending UI benefits 1.64
Temporary increase in food stamps 1.73
Source: Moody's Economy.com
http://www.ilcaonline.org/ht/display/ArticleDetails/i/75963
Feel free to send this to your crazy Uncle Spric or Niece Renaye. They need to know the facts. While you're at it send it your local congressman. Like what's his name says fax it to him or her. Send it to as many US senators as you'd like. John McCain might like to know at least one of his economic advisors isn't insane.
