Word that Mr Obama is including a $310 Billion tax cut for individuals and businesses as part of a massive economic stimulus package should illicit only one response from congress: "Go ahead, I'm listening". Read November 26th post: "Cut, Baby, Cut".
If the idea is to get money into consumer's wallets right away, then cutting the payroll tax would be the most direct and quickest way to provide relief to millions of taxpayers. Sending a check to those who did not pay income taxes in the first place is a giveaway, not a refund. A "permanent" cut in the income tax would be the best way to achieve sustainable consumer confidence that they will have less of their money taken away.
Naturally, there will be elements of the stimulus plan that will be designed to please the liberals. However, a significant tax cut is worth some degree of compromise if that's what it takes. But we have to watch the details and read the fine print.
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