Thursday, January 24, 2008

Don't give me no rebate shrebate

I've really be struggling with the tax rebates lately. The way I see it, our country is in debt 9 Trillion dollars (250 billion during 2007 alone). As an American citizen, my family already carries a portion of that burden. So...why am I borrowing more money in the form of a rebate (and paying interest to China, India, etc.) when I'm probably already thousands of dollars in debt? And why do they want me to go out and spend this borrowed money on foreign manufactured goods when so little of it is going to help the US GDP? This whole plan is ridiculous and just goes to show how pampered Americans are. We have a rapidly deflating dollar, an enormous debt load, inflated housing markets, and credit problems. I think a 12-month recession and some reasonable taxes is just what this country needs to get back on track. I guess I better invest my refund check in a secure CD because my children are going to be paying back the debt I helped rack up for them.

If our leaders are bent on rebates, here's an alternative plan that might actually work. If you want to infuse money into the US economy, why not have the states host a sales tax free day (or week) on US manufactured goods. State's are already set up to accommodate tax free transactions. Marketers will love this and will likely bonus or match the tax free deals. The federal government can refund the states the lost tax revenue. The US will sell more goods, businesses will be helped, manufacturing and services will increase, and we'll see the unemployment rate shrink. At least this way, you know that all of the money will be plowed back into the US economy instead of paying off debts, being secured in savings, or worse—being sent out to China and India.

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