Three months tax free?

[wavespank]

Do you thing a three month (one quarter) suspension of federal taxes would be an effective kick start to the economy? It isn't a bailout as people would just be keeping more of what they earn.

[thundley4]

I think they were also talking about including all federal taxes, including SS.  It might put more money into the system, but I still think extending all of the Bush tax cuts would do more. However, I think they are wanting something that people would see right away, but if they don't extend the tax cuts, then people will be worse of starting January 1.

[Chris_]

I don't think it would be effect at all.  Why only three months?  After the three months is up, would it give the government a reason to raise taxes to make up for three months of no taxes?  If we kept more of what we earned, wouldn't we owe more at the end of the year? 

[wavespank]

The idea would be that three months of income are tax exempt.

[RightCoast]

The idea would be that three months of income are tax exempt.

Never happen, they can not allow the masses to see how much is actually withheld. 

As a thought experiment it would put more money into the system, but it would not solve the underlying problem of poor confidence that is a direct result of not knowing what the **** the government is going to do next. 

[BEG]

The idea would be that three months of income are tax exempt.

No, business need to know what the future is as far as expenses (taxes, healthcare, etc) before they feel comfortable investing money in new hires and equipment. Keep the Bush tax cuts.  Obama won't do it though. 

[Lacarnut]

Extending the Bush tax cuts is the answer. This gimmick of tax free for a certain length of time is just a band aid approach just like the credit for clunkers and credits for home owners. After they expire, then what. Auto sales and home sales tank afterwards. Business will not put on more employees with this 3 month tax free plan.

[WildRose]

Do you thing a three month (one quarter) suspension of federal taxes would be an effective kick start to the economy? It isn't a bailout as people would just be keeping more of what they earn.

It would certainly put a little extra money in the pockets of people and corporations to spend, but at most it would be a minimal short term stimulus.

3 months is just 3  months.  Look what happened to the housing market when the tax credits expired.  Sales for both new and existing homes were worse in July and August than at any time since the late seventies/early eighties when you couldn't get a mortgage with even AAA credit at anything below 12%, and that is IF you could find a lender.

Short term fixes aren't the answer.  We need a permanent flat tax of somewhere between 15-18%, 20% max on all incomes, personal, and corporate.

Of course we also need a constitutional Amendment preventing the Fed's from thinking up any new taxes on top of it.

[NHSparky]

Never happen, because it's "racist", "only for the rich", etc.  The Cheeto-munching, bong-toking, do-nothing denizens of the DUmp would claim it "unfair" because as they do not have any jobs, they would see no benefits.

BTW--I know how much is taken out of my check.  I actually had to demonstrate that to a liberal friend of mine when he thought he was "only" paying 12 percent of his income in taxes.  Oh, he wasn't happy when I was done with him.

[wavespank]

Never happen, because it's "racist", "only for the rich", etc.  The Cheeto-munching, bong-toking, do-nothing denizens of the DUmp would claim it "unfair" because as they do not have any jobs, they would see no benefits.

BTW--I know how much is taken out of my check.  I actually had to demonstrate that to a liberal friend of mine when he thought he was "only" paying 12 percent of his income in taxes.  Oh, he wasn't happy when I was done with him.

I hope you added fuel taxes, phone taxes, alcohol taxes, energy taxes, disposal fees, cable/internet taxes, health care taxes, all the taxes built into the price of everything we purchase...........

[DumbAss Tanker]

I don't think it'd work for several reasons (Only one of which is that it would change the perception of the bond markets from 'Lackluster recovery' to 'The Fed is desperate, this must be much worse than we thought, there is nothing backing the bonds we're holding, Holy Shit!!').  I also don't think there is any real chance of it actually happening.

[Allentownjake]

I think we have dug ourselves such a big hole that the only solution is a period of higher taxation like in the 1950s decreased social spending and increased infrastructure investment that will be used by business.  The social spending can be offset by government jobs for those willing to work on  infrastructure projects that are frankly an issue of national security due to our reliance on foreign oil.

This includes some alternative energy, rail, and Nuclear power with a permanent storage facility and the state that holds it compensated by the other states for the risk of having the facility.

I also think that we need to have an honest and open discussion on the immigration issue and whether during a period of economic crisis it is wise to have an open border or to be issuing H1-B1 visas and education visas at the rate that we are.  I think it is important we take care of our own first than help the rest of the world.

A period of sacrifice for 5-10 years by all Americans to ensure the survival of the next generation.

[wavespank]

Giving the most direct relief to the working families for a few months while going into Christmas would be a great short term boost for those families, help the retail sector move some products, lower the costs of feeding families and help drop transportation costs for tons of folks.

It is not a solution. I'd view it as a "stimulus" (bad word these days) that keep the government out of the middle and helps folks see as close to 100% of what they earn for a short time. When the public sees what good they can do with the tax money compared to what Gov has traditionally done, it will awaken the people on all sides of the political debate and open their eyes to the truths that are are hidden from them.

[Lacarnut]

I think we have dug ourselves such a big hole that the only solution is a period of higher taxation like in the 1950s decreased social spending and increased infrastructure investment that will be used by business.  The social spending can be offset by government jobs for those willing to work on  infrastructure projects that are frankly an issue of national security due to our reliance on foreign oil.

This includes some alternative energy, rail, and Nuclear power with a permanent storage facility and the state that holds it compensated by the other states for the risk of having the facility.

I also think that we need to have an honest and open discussion on the immigration issue and whether during a period of economic crisis it is wise to have an open border or to be issuing H1-B1 visas and education visas at the rate that we are.  I think it is important we take care of our own first than help the rest of the world.

A period of sacrifice for 5-10 years by all Americans to ensure the survival of the next generation.

Oh, yeah. Higher taxes is what we need is crock of crap. DU is thataway. What we need is to take a hatchet to spending.

The stimulus has worked so well let's do more is idiotic also. Government spending to create jobs at a cost of almost $200k per job is going to bankrupt us. Lower taxes with less regulations will create certainty for small business to hire employees not some lame brain federal spending boondoggle.  

[Allentownjake]

Inventory recession solution that takes consumer debt off their books onto the government or just created government debt. Keynsian nonsense in my opinion.

[Allentownjake]

Debt. You are arguing over either side of the keynsian equation using a different stimulus method. Tax rate in the 50s was high to pay for ww2. 

[Lacarnut]

Debt. You are arguing over either side of the keynsian equation using a different stimulus method. Tax rate in the 50s was high to pay for ww2. 

You are the one spouting a lot of nonsense about raising taxes. No country in the world has spent it's way into prosperity. So, higher taxes and more stimulus is not the answer. Obama has tried 800 billion dollars worth of stimulus and it has failed miserably.

[Allentownjake]

I think I'm advocating austerity and sacrifice to hand the next generation a clear and reasonable balance sheet.

[Lacarnut]

I think I'm advocating austerity and sacrifice to hand the next generation a clear and reasonable balance sheet.

Higher taxes and more government spending does not equal austerity. That is what you have advocated in previous posts. Lower taxes, reduced spending and less regulations is the ticket to a better balance sheet and economic growth.

[Allentownjake]

You cut spending in some sectors and you increase spendin in others, net cuts.  I assume every business in the country adjust. We aren't paying down our debt with tax
cuts.

[gurn]

Do you thing a three month (one quarter) suspension of federal taxes would be an effective kick start to the economy? It isn't a bailout as people would just be keeping more of what they earn.

Lower taxes = good.

Higher taxes = bad.

Even if Obama is lowering taxes, I'm all in favor of it. But why stop at 3 months?
The payroll tax is a huge job-killer. FICA, FUTA, SUTA, MC. It penalizes employers
for hiring people. Liberal Dems started that idiocy. But the GOP has helped perpetuate it.

It is really stupid to penalize employers for hiring people, especially if there aren't enough jobs. 

[Allentownjake]

Lower taxes = good.

Higher taxes = bad.

Even if Obama is lowering taxes, I'm all in favor of it. But why stop at 3 months?
The payroll tax is a huge job-killer. FICA, FUTA, SUTA, MC. It penalizes employers
for hiring people. Liberal Dems started that idiocy. But the GOP has helped perpetuate it.

It is really stupid to penalize employers for hiring people, especially if there aren't enough jobs.  

Why stop there, I'm perfectly happy with abolishing the income tax all together and going back to funding federal operations with imports.

Why punish good behavior and reward bad behavior.

[Lacarnut]

You cut spending in some sectors and you increase spendin in others, net cuts.  I assume every business in the country adjust. We aren't paying down our debt with tax
cuts.

We will not be paying down our debt with higher taxes. Politicians just spend more and create more government employees. Government employee jobs need to be cut along with their fat salaries. Business has adjusted. They will not hire with Obama's socialistic plan for higher taxes, cap and trade, new regulations and a great deal of uncertainty. The burden of government debt lies squarely on government. Where you get the idea that it rests with business is beyond comprehension.   

[Allentownjake]

We will not be paying down our debt with higher taxes. Politicians just spend more and create more government employees. Government employee jobs need to be cut along with their fat salaries. Business has adjusted. They will not hire with Obama's socialistic plan for higher taxes, cap and trade, new regulations and a great deal of uncertainty. The burden of government debt lies squarely on government. Where you get the idea that it rests with business is beyond comprehension.   

Want me to pull up business contracts with the government.  I can start with GE.

[MrsSmith]

Want me to pull up business contracts with the government.  I can start with GE.

You'd also have to prove that the business GE does with the government could be done more cheaply some other way.