When Democrats and Republicans in Washington agree on anything, I get nervous. When they reach agreement quickly, I shudder with fear. So it is today with the news of a deal to stimulate the economy.
The proposal sounds good for many taxpayers on the surface:
Most single taxpayers would get $600 and most two-wage households would get at least $1,200. The deal includes an additional amount of $300 per child. A total of 116 million taxpayers will receive checks of some size.
The main exception: higher-income taxpayers or individuals earning $75,000 or more or couples earning $150,000 or more. They would get reduced rebate checks, or none at all, depending on their income.
But the philosophy behind it is off the mark. It also makes me wonder: If the government can afford to give Americans tax rebates, why are they taking our money in the first place?
Also bear in mind that the ultimate goal of the rebate and the other steps proposed in the stimulus package is to generate new spending and economic activity — so the government can get more tax revenue. It’s all about the taxes.