Tuesday, August 4, 2009

Obama Has An Epiphany

Obama declared that "Cash for Clunkers" is a success. Give consumers $4,500 to spend on a new car, and they use it. He says this is a true stimulus success. Really? Is that a surprise? Surely he doesn't mean that when the government hands our cash back to us Americans that we will spend it? Is this some kind of a revelation and true Liberal Presidential epiphany for him?

If, as it has been pointed out by many who really understand job creation, he would have given all Americans a one or one and a half year tax holiday, some would squirrel that money away, sure, but countless people would spend that money too. They would buy things and create jobs.

And how to pay for the tax holiday? If Obama had saved the money that he printed and squandered in his wasteful deficit spending frenzy and directed it back to us in tax relief, that could have covered the much of cost of the tax holiday.

But, Liberal Democrats can't comprehend the increases in tax revenue that always come when taxes are cut. They never have understood that simple concept, and they apparently never will. They always called it "Unexpected Revenue" and were shocked when record taxes were collected during GWB's tax cuts.

Thanks to Obama economics, overall US income tax payments are down 18% this year. Individual tax payments are down 20%, and corporate tax collections are down down 57% so far too. State income tax collections are fairing no better. This is the worst tax collection year since 1932.

And the obvious benefit of a tax holiday? People would buy goods with their money, which would have to be made by someone hired to do that, creating other jobs in providing raw materials, transportation, wholesaling, warehousing, and retailing. Many economist believe that unemployment would have been reduced to 3 or 4 percent. That's more than what economists call full employment. Talk about creating or saving jobs!
This would certainly have added to the amount of taxpayers and revenue to the government.

But, don't sell Obama short. He has created a booming business in firearms and ammunition manufacturing. Ammo manufacturers are still running 24/7 and yet can't keep up with the demand. Gun and ammunition manufacturers stock prices have soared.

At least numerous jobs have actually been created or saved in this one industry by him.

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