Friday, February 13, 2009
Heritage Chart of the previous stimulus.
Here's a neat chart done by the Heritage Foundation showing how stimulus checks last year hardly did anything. They echo what DownSizeDC has said. One time boosts to income don't make people feel comfortable about spending more. It's only a permanent increase in income that makes people feel more like spending. That's why permanent tax cuts for all people paying income taxes is the best way to encourage spending and investment.
Below is their chart showing statistics about the 2003 tax cuts.
As a related side note, I just want to reiterate that the results of the Revanue Act of 1932 shows that higher taxes hurt the economy. Click here for a history of the Great Depression, which shows that while there was slow sustained growth up until 1937, the economy had another recession and only picked up more perminantly when the conservatives got rid of most of the "New Deal" and finally got rid of all of it accept Social Security by 1947.
Also interesting: click here for a relatively short history on how the United States income tax came to be.
In Love and Liberty,
from Bergen, Hordaland, Norge,
Christopher D. Osborn